ChargePoint and Blink Charging’s available cash is dwindling to less than a year’s worth

Key Points

  • 💰 ChargePoint and Blink Charging, major EV charging networks, have less than a year’s worth of cash left.
  • ⚡ Tesla’s North American Charging Standard (NACS) is gaining traction, while customer satisfaction with charging is low.
  • 📉 ChargePoint’s net cash used in Q1 was $104 million, with about 9 months’ worth of cash remaining.
  • 📉 Blink Charging spent $65 million on operating activities in H1 2023, with around 7 months’ worth of cash left.
  • 🔄 Both companies aim to reduce losses and improve profitability amid challenges.
  • 🆕 Legacy charger replacements and past location issues are key challenges facing the charging industry.
  • 🌩️ Charging providers are dealing with competition, unhappy customers, and financial constraints.
  • 📊 Industry experts describe the situation as a challenging confluence of factors.

ChargePoint and Blink Charging, two of the prominent publicly-traded EV charging networks in the United States, are navigating challenging waters. The widespread adoption of Tesla’s North American Charging Standard (NACS) among automakers, coupled with low charging satisfaction among consumers and financial constraints, has posed significant hurdles.

According to the most recent quarterly reports from these charging companies, both ChargePoint and Blink Charging have less than a year’s worth of cash remaining. In its first fiscal quarter, ChargePoint’s net cash utilized for operating activities surged to approximately $104 million, leaving the company with $314 million in cash by the end of the period, equivalent to around nine months’ worth of funds.

Back in June, ChargePoint’s CFO, Rex Jackson, highlighted that the company’s increased cash burn was primarily driven by operating losses. A company spokesperson emphasized ChargePoint’s commitment to reducing losses and anticipates a substantial slowdown in cash burn.

Blink Charging finds itself in a similar situation, having expended $65 million on operating activities during the first half of 2023, more than double the $31 million spent in the corresponding period of the previous year. Blink Charging’s cash reserves stood at about $75 million at the period’s close, translating to roughly seven months of available cash.

Blink Charging CEO Brendan Jones acknowledged the challenges posed by legacy charger replacements, which have become burdensome due to outdated technology and reliability concerns. Jones acknowledged past industry mistakes in charger placement and other aspects, stressing the need for improved quality and profitability.

Sam Abuelsamid, an analyst at Guidehouse Insights, characterized the current landscape faced by charging providers in the U.S. as a “perfect storm.” This situation entails new competition, dissatisfied customers, financial constraints, and the necessity for capital expenditure, creating a challenging environment for these companies.

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