Why ChargePoint, QuantumScape, and Blink All Jumped Today
An array of stocks in the electric vehicle (EV) sector are getting a boost today. EV charging network, manufacturing, and battery stocks jumped between 7% and 11% early Thursday. Though they'd pared their gains, charging companies ChargePoint Holdings (NYSE: CHPT) and Blink Charging (NASDAQ: BLNK) remained up by 7.6% and 3.3%, respectively, at 11:40 a.m. ET. Shares of solid-state battery maker QuantumScape (NYSE: QS) were 5.7% higher at that time.
Two things have these stocks jumping today. First, the Biden administration announced yesterday that it has approved the plans from 35 states for EV charging infrastructure spending using funds approved in the Bipartisan Infrastructure Law signed late last year. Those plans represent spending of the first $900 million from the $5 billion allocated to eventually build a national network of 500,000 EV chargers.
An analyst note today also helped spur some buying in the sector. Needham & Company analyst Vikram Bagri began new coverage on the sector and included a number of EV manufacturers in his report. While his ratings varied depending on the company, one overarching comment, according to CNBC, was, "Our key takeaway is that the growth forecasts for EVs still appear conservative." That's a shot in the arm for all companies in the sector.
Source Fool.com
