Riding High on Growing Electric Vehicle Sales

Key Points

  • Blink Charging is one of the largest and the only listed pure play in the emerging EV charging market.
  • They offer end-to-end EV charging solutions including an EV charging network, EV charging equipment (EVSE), and EV charging services.
  • They use a flexible business model encompassing Blink-owned and host-owned sites to meet the needs of property partners and EV drivers.
  • The EV market in the U.S. is estimated to grow 4.0x to 1.5M units by 2025 on growing concerns about greenhouse gas emissions as well as increasing affordability and higher efficiency brought about by advances in battery technologies.
  • The EV charging infrastructure remains the backbone for continued EV adoption and is expected to lead the EV sales. Public EV charging outlets in the U.S. are estimated to reach 108k in 2021 from 78k in 2019.
  • Recent partnerships with Cushman & Wakefield, InterEnergy, Hellas SA are allowing Blink to boost network expansion and connectivity.

Our Insights

The Opportunities

Blink operates in the fast-growing EV charging market, the backbone infrastructure for the adoption of EVs. An early mover advantage coupled with end-to-end EV charging solutions provides the company with a competitive advantage over other players that focus on either selling hardware or supporting drivers with an EV charging network. Blink’s advantage is found in the ownership of the equipment versus a one-time equipment sale, enabling them to take advantage of the significant increase in utilization of the equipment as more EVs are in operation. Recent partnerships with Envoy Technologies, Cushman & Wakefield, and InterEnergy will expand the company’s network of chargers.

The Obstacles

Aside from the obvious near-term uncertainty created by Covid, Blink is an early-stage growth company and as such faces challenges stemming from negative cash flow and execution risk, not uncommon to most emerging growth companies. It is also important to consider that the EV charging sector is fast becoming an area of focus for new, potential competitors and as growth continues, it is reasonable to expect additional players will enter the market – some of which could be larger and better capitalized. There is also the consideration that acquisitions play a key role for the company as a consolidator. Being an acquirer demands capital and so a sharp focus should remain on the balance sheet and cashflow as the company expands. Furthermore, acquisitions can increase execution risk and create new challenges.