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Stocks of electric vehicle charging companies have plummeted, as President Donald Trump savages the electric vehicle industry and paused an important programme for building out US charging infrastructure.
The publicly traded companies, and their privately held competitors, are suffering from slower than expected adoption of EVs, coupled with an administration that has championed little about the industry outside of Tesla, the electric-car maker helmed by Trump’s political ally Elon Musk.
The Trump administration is threatening to roll back consumer tax credits for EVs, while also potentially levying tariffs against carmakers with foreign manufacturing operations, a blow to the charging companies downstream. Last month the Federal Highway Administration said it would pause the $5bn National Electric Vehicle Infrastructure (NEVI) programme, which began awarding grants last year to fund a network of EV chargers. Tesla has received $31mn, making it one of the programme’s five largest recipients.
Executives and experts expect to see consolidation in the charging industry.
“Whether you’re talking about federal policy related to tariffs, regulations or funded programmes, all of these things are very grey right now . . . which is creating a lot of uncertainty,” said Nick Nigro, founder of consultancy Atlas Public Policy. “Which is one of the worst things that a business can have staring at them.”
“It wouldn’t surprise me if some companies connected to these programmes went under related to cash flow issues,” he added.
Share prices for Blink Charging, ChargePoint and EVgo all dropped the day after the presidential election and are about 70 per cent below their highest point in the last year, with much of the decline coming since the November 5 poll.
Blink chief executive Mike Battaglia said short-term factors such as the political climate and pace of EV adoption had overshadowed the electrification trend. Investors also want to see profits and cash flow sooner rather than later.
“There is a disconnect between current market valuations and the long-term viability of the businesses in our industry,” he said.
EV charging company Electrify America was funded from a settlement Volkswagen paid after pleading guilty to outfitting diesel trucks with devices to make their emissions seem lower than they really were.
“Obviously, the change in administration is driving a large part of what’s happening today,” said its chief executive, Robert Barrosa. “The EV industry ebbs and flows. But generally there’s been a growth momentum overall in the market.”
EVgo chief executive Badar Khan sought to assure investors earlier this month that even though “all government funding is under review”, the company remained hopeful it would receive the $1.25bn loan it was granted by the US Department of Energy in December, with the first $75mn drawn in January.
“This is not a conditional commitment, but a legally binding contract,” he said.
ChargePoint chief executive Richard Wilmer told investors earlier this month that tariffs on EVs would be “inconsequential” to its costs, that 2024 revenue tied to the NEVI programme was “insignificant” and that the company planned to go ahead with its part of a contract to supply the US Postal Service with chargers.
“But obviously, like everything that’s affected by government policy changes, we’re keeping a close eye on it,” he added.
The largest recipients of the NEVI programme besides Tesla include two petrol station chains, Love’s and Pilot, and two privately held charging companies, Texas-based Universal EV Chargers and Oklahoma-based Francis Energy. With $90mn, Francis Energy has the most NEVI awards of any company.
Executives for Blink and Electrify America said the pause in the NEVI programme would have little effect on their companies. Electrify America, which has received about $11mn in NEVI funding, will move forward on projects as it receives updated guidance from states and the federal government.
Battaglia sounded rueful when discussing the political attacks against EVs, noting “we have successfully figured out a way to politicise a drivetrain, and it really makes no sense whatsoever”. But Blink has hired a lobbying firm to push the message that electric vehicles can help the Trump administration achieve its goal of energy independence.
“Who knows to what degree that message is being listened to or there is even an openness for it right now,” he said. “We don’t panic because we think that there’s a time and season for everything . . . We don’t think the intensity of what’s happening right now will continue, and once that intensity ebbs a bit, we think our message will come across.”
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