Here’s why EVGo stock is beating Blink Charging and ChargePoint

Electric Vehicle (EV) stocks have largely diverged this year, with Blink Charging (BLNK) and ChargePoint (CHPT) falling by over 46% and 20.5% this year while EVGo (EVGO) has risen by more than 25%. 

The same trend has happened in the last 12 months as the Blink and ChargePoint have dropped by 55% and 74% while EVGo has risen by almost 9% 

EVGo’s strong growth

EVGo’s stock has done well because of its strong revenue and network growth in the past few years. It has added over 1 million customer accounts as it opened over 3,440 stalls in over 1,000 locations in 35 states in the US.

The most recent results showed that the company’s business was doing modestly well in the last quarter. Revenue rose by 32% to $66.6 million, helped by its charging network which brought in $36.4 million 

The company’s revenue growth rose as the company added 220 new stalls during the quarter, bringing its total gigawatt jumped to over 66 gigawatts. It also added 131k customer accounts the quarter. 

However, the company continued losing substantial sums of money during the quarter. Its net loss came in at $29 million from $21.5 million in the same quarter in 2023. For the first six months of the year, its revenue rose to $121 million while the net loss narrowed to $57.8 million.

These results show that the company is doing well as it continues to grow its network and as the number of electric vehicles in the US rose. 

The company also boosted its forward guidance for the year, with its revenue expected to be between $240 million and $270 million.

Blink Charging and ChargePoint are not doing well

On the other hand, however, Blink Charging and ChargePoint are not doing well. In its most recent financial results, Blink Charging said that its revenue rose slightly to $33.3 million, up from $32.8 million in the same period in 2023. 

Its product revenue dropped by 4.1% to $23.5 million while its service and other revenues tose by 15% and 29.4% to $8 million and $1.68 million. 

Most notably, the company lowered its forward revenue guidance to be between $145 million and $155 million. It also extended the timeline to achieve a positive EBITDA and replaced its management. 

Also, its cash burn continued, which helped to reduce its cash and equivalents from $121.6 million in in December to $73.8 million.

ChargePoint, on the other hand, will publish its financial results on September 4. Its Q1 results showed that its revenue continued slowing. It dropped by 18% to $107 million while its gross margin fell from 23% to 22% while its net loss rose to $71 million. 

Analysts expect that ChargePoint’s revenue will come in at $113 million, down from $144 million in the same period in 2023. The company’s balance sheet is not doing well as its cash has dropped to $261 million from $327 million in January.

The risk for ChargePoint is that the company will likely need to raise additional capital, diluting its existing shareholders. Over the years, the number of outstanding shares has risen from 22.9 million in 2021 to over 425 million as the company has raised substantial sums of money.

EVGo seems like a better investment

The electric vehicle charging industry will likely do well in the next few years as the number of electric vehicles on the road continue rising. 

While the growth of EVs has slowed, companies like Rivian, Tesla, and Lucid are still selling thousands of vehicles. There are over 2.4 million EVs in American roads and this number will continue rising. The estimate is that EVs will make up about 17% of all sales in the US by 2028.

This growth means that demand for fast-charging infrastructure will continue growing. Therefore, companies like EVGo will continue seeing strong growth over time. 

EVGo seems like a better EV charging stock for several reasons. It is the only EV charging company that is growing, has a strong balance sheet, and has outlined a path towards profitability.

EVGo stock price analysis

Additionally, the company’s stock price has supportive technicals. On the daily chart, we see that the stock has formed a golden cross pattern as the 200-day and 50-day moving averages. In most cases, this is one of the most popular bullish signs in the market. 

This rebound, which I predicted in July, happened after the stock formed a triple-bottom chart pattern, which is a popular bullish sign. The stock is nearing the important resistance point at $4.70, its highest point on August 1st. 

Also, the Relative Strength Index (RSI) and the MACD moved above the neutral point. Therefore, the stock will likely continue rising as bulls target the key point at $5.95, its highest level on August 3 last year.

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