With eyes currently pointing towards the EV charging market in the US, Blink Charging Co. (NASDAQ: BLNK) has announced that it will be adding Tesla’s (NASDAQ: TSLA) North American Charging Standard (NACS) capabilities to its entire product line. This move comes at a perfect time for BLNK to capitalize on the growing wave of EV manufacturers adopting TSLA’s NACS to access its supercharging network. With the stock up 15% since sharing the news, BLNK stock could further run over the coming weeks given its high short data.
BLNK Fundamentals
Following Tesla’s Steps
Since Tesla announced its collaboration with Ford (NYSE: F) on May 25, BLNK and other EV charging stocks have started to fall with fears of Tesla dominating the market, especially since Tesla has announced more deals with General Motors (NYSE: GM), Rivian (NASDAQ: RIVN) and Polestar (NASDAQ: PSNY).
That said, on June 28, BLNK announced that it is going to add NACS capabilities to all of its products, which seems to put investors at ease, as BLNK stock is currently up more than 15% since the announcement.
While BLNK’s charging stations were already compatible with Tesla’s NACS via an adapter, the ability to simply plug in your car may attract more customers to BLNK, especially since after the aforementioned deals in addition to Tesla’s EVs using NACS will make up 85% of the EVs in the US.
BLNK has also taken a step to further improve its network as it completed the integration of SemaConnect’s chargers after acquiring it back in 2022 for $200 million. With more than 11 thousand chargers after the integration, BLNK is now the third largest level 1 and 2 charging network in the US behind ChargePoint (NASDAQ: CHPT) and Tesla. If BLNK continues growing at the same pace, it may overtake TSLA soon in level 1 and 2 charging – especially since TSLA is more focused on its level 3 fast charging network.
Possible Buyout?
Given BLNK’s potential in level 1 and 2 charging and its implementation of TSLA’s NACS, BLNK could become a buyout target for TSLA to capitalize on its existing infrastructure. The reason such a buyout could occur is that TSLA may be looking to dominate the EV charging market following its recent deals. By acquiring BLNK, TSLA would have the second largest level 1 and 2 charging network in the US while continuing to focus on its supercharger stations.
Short Data
At the moment, BLNK stock is highly shorted with a 27.8% short interest and 35% of its float on loan. If BLNK maintains its bullish momentum that started after adding NACS to its product line, a short squeeze may occur as short sellers could be forced to cover their positions – sending BLNK stock higher.
BLNK Financials
In its Q1 2023 report, BLNK’s assets increased 22% QoQ from $362 million to $441 million, and its cash and cash equivalents increased 186% QoQ from $36 million to $103 million. BLNK’s total liabilities increased by 6% QoQ from $101 million to $107 million.
Revenue also increased 120% YoY from $9.8 million to $21.6 million. Operating costs increased almost 110% from $16.6 million to $35 million, which contributed to the operating loss increase of 105% YoY from $15 million to $30.8 million. As a result, BLNK’s net loss increased 97% YoY to $29.8 million.
Technical Analysis
BLNK stock’s trend is bearish with the stock trading in a downward channel. Looking at the indicators, the stock is trading above the 50, and 21 MAs which are bullish indications, and is trading below the 200 MA which is a bearish indication. Meanwhile, the RSI is overbought at 70 and the MACD is approaching a bearish crossover.
As for the fundamentals, BLNK stock just witnessed a catalyst with the addition of NACS to its products. In case BLNK stock continues running and breaks its $6.18 resistance it could trigger a short squeeze since it is highly shorted. However, as the stock is trading near resistance, a pullback may occur soon.
BLNK Forecast
BLNK’s decision to add NACS capabilities to its charging stations will enable it to grow its customer base and may enable it to overtake Tesla as the second largest level 1 and level 2 charging network in the U.S. Furthermore, BLNK stock may witness a short squeeze due to the high short interest it is currently seeing. Given that the company’s network may be pivotal for TSLA’s potential dominance of the EV charging market, BLNK stock could be one to watch closely thanks to its buyout potential.
BLNK Fundamentals
Following Tesla’s Steps
Since Tesla announced its collaboration with Ford (NYSE: F) on May 25, BLNK and other EV charging stocks have started to fall with fears of Tesla dominating the market, especially since Tesla has announced more deals with General Motors (NYSE: GM), Rivian (NASDAQ: RIVN) and Polestar (NASDAQ: PSNY).
That said, on June 28, BLNK announced that it is going to add NACS capabilities to all of its products, which seems to put investors at ease, as BLNK stock is currently up more than 15% since the announcement.
While BLNK’s charging stations were already compatible with Tesla’s NACS via an adapter, the ability to simply plug in your car may attract more customers to BLNK, especially since after the aforementioned deals in addition to Tesla’s EVs using NACS will make up 85% of the EVs in the US.
BLNK has also taken a step to further improve its network as it completed the integration of SemaConnect’s chargers after acquiring it back in 2022 for $200 million. With more than 11 thousand chargers after the integration, BLNK is now the third largest level 1 and 2 charging network in the US behind ChargePoint (NASDAQ: CHPT) and Tesla. If BLNK continues growing at the same pace, it may overtake TSLA soon in level 1 and 2 charging – especially since TSLA is more focused on its level 3 fast charging network.
Possible Buyout?
Given BLNK’s potential in level 1 and 2 charging and its implementation of TSLA’s NACS, BLNK could become a buyout target for TSLA to capitalize on its existing infrastructure. The reason such a buyout could occur is that TSLA may be looking to dominate the EV charging market following its recent deals. By acquiring BLNK, TSLA would have the second largest level 1 and 2 charging network in the US while continuing to focus on its supercharger stations.
Short Data
At the moment, BLNK stock is highly shorted with a 27.8% short interest and 35% of its float on loan. If BLNK maintains its bullish momentum that started after adding NACS to its product line, a short squeeze may occur as short sellers could be forced to cover their positions – sending BLNK stock higher.
BLNK Financials
In its Q1 2023 report, BLNK’s assets increased 22% QoQ from $362 million to $441 million, and its cash and cash equivalents increased 186% QoQ from $36 million to $103 million. BLNK’s total liabilities increased by 6% QoQ from $101 million to $107 million.
Revenue also increased 120% YoY from $9.8 million to $21.6 million. Operating costs increased almost 110% from $16.6 million to $35 million, which contributed to the operating loss increase of 105% YoY from $15 million to $30.8 million. As a result, BLNK’s net loss increased 97% YoY to $29.8 million.
Technical Analysis
BLNK stock’s trend is bearish with the stock trading in a downward channel. Looking at the indicators, the stock is trading above the 50, and 21 MAs which are bullish indications, and is trading below the 200 MA which is a bearish indication. Meanwhile, the RSI is overbought at 70 and the MACD is approaching a bearish crossover.
As for the fundamentals, BLNK stock just witnessed a catalyst with the addition of NACS to its products. In case BLNK stock continues running and breaks its $6.18 resistance it could trigger a short squeeze since it is highly shorted. However, as the stock is trading near resistance, a pullback may occur soon.
BLNK Forecast
BLNK’s decision to add NACS capabilities to its charging stations will enable it to grow its customer base and may enable it to overtake Tesla as the second largest level 1 and level 2 charging network in the U.S. Furthermore, BLNK stock may witness a short squeeze due to the high short interest it is currently seeing. Given that the company’s network may be pivotal for TSLA’s potential dominance of the EV charging market, BLNK stock could be one to watch closely thanks to its buyout potential.