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Thinking about buying shares of electric vehicle charging company Blink Charging (NASDAQ:BLNK) stock in 2023?
My response is: Don’t try to be a hero and buy what the market is selling.
Sure, BLNK stock might look cheap after being beaten down so badly. However, an uber-famous electric vehicle manufacturer’s competing charging network will make life difficult for Blink Charging’s stakeholders.
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I’ll admit that Blink Charging is expanding its operations and making some notable deals.
We’ll cover that topic in a moment, but don’t ignore Blink’s problems. At the end of the day, it’s fine to keep tabs on Blink Charging’s progress. Yet, it’s too risky to invest in the company now.
Blink Charging Is Wheeling and Dealing in 2023
At least, the BLNK stock bulls can claim that Blink Charging is working with some interesting partners and clients. There’s no shortage of news releases to prove this point.
Blink Charging is taking advantage of local pro-clean-energy policy incentives to commercialize its products in Latin America.
Second, Blink is partnering with with McDonald’s (NYSE:MCD) franchisee Arcos Dorados to “provide EV charging solutions to five McDonald’s restaurants. . . in Puerto Rico.”
Blink Charging disclosed new agreements with auto dealership Moberly Motors and convenience store chain Royal Farms.
On top of all that, Blink revealed team-ups with the Utah Division of Purchasing and the Tennessee Valley Authority.
Thus, at first glance, it might look like Blink Charging is an unstoppable force in EV charging stations.
Watch for This Major Threat to BLNK Stock
Yet, Blink Charging definitely isn’t an unstoppable force – or at least, it could be slowed down by America’s best-known EV maker.
Blink may have some forward momentum with its public and private contracts, but it still has to compete against the almighty Tesla (NASDAQ:TSLA).
I suppose one could say the same thing about ChargePoint (NYSE:CHPT). However, ChargePoint (with a market capitalization of $1.79 billion) is a much bigger company than Blink (with its market cap of $190 million).
Blink Charging, as small as it is, will be vulnerable to strong competition from Tesla’s Supercharger network. Tesla’s fast-charging network is already quite extensive. Moreover, numerous automakers’ EVs are compatible with Tesla’s Supercharger network.
This, by itself, is an interesting reason to avoid BLNK stock. It’s perilous to invest in Blink Charging, a relatively small player in the fast-charging game.