Blink Charging Co. (NASDAQ: BLNK) a leading owner, operator, and provider of electric vehicle (EV) charging equipment and networked EV charging services. 

Key updates:

• Recently, the company launched seven new products related to EV charging technology, enabling EV drivers to easily charge at any of the Company’s charging locations worldwide.
• Additionally, the company is planning to introduce two new apps, Blink Mobile App and the Blink Fleet portal, to empower a more seamless, efficient, and affordable charging experience for both consumers and fleets.

Key Financial Highlights:

• BLNK announced its third-quarter results, wherein its reported total revenue of USD 6.402 million, significantly higher than USD 0.906 million in pcp. The jump was primarily attributable to strong product sales coupled with higher income from Charging service segment.
• The group witnessed higher cost of revenue, increase in compensation expense and higher general & administrative expense. Loss from operations widens to USD 15.823 million, from a loss of USD 3.913 million in pcp.
• Net loss stood higher at USD 15.321 million, as compared to USD 3.914 million in pcp.

 Stock Recommendation:

The company is an end-to-end global EV charging provider, which delivers advanced technology solutions for all EV customers. However, the company is yet to report a stable income from its operations and is funded by the equity component only. Hence, we prefer to remain on the sidelines. The stock of BLNK corrected ~35% and ~55% in the last nine months and one year, respectively.

 Hence, considering the aforesaid facts, we give a ‘Watch’ stance on the stock of BLNK at the last traded price of USD 23.23 on January 14, 2022.

Technical Price Chart (as of January 14, 2022). Analysis by Kalkine 

QuantumSpace Corporation (NYSE: QS) is engaged in the development of next-generation solid-state lithium-metal batteries for electric vehicles.

Key Updates:

Recently, the company reported a multi-year agreement with Fluence Energy Inc.  to introduce solid-state lithium-metal battery technology to stationary energy storage applications. This collaboration is in the context to reduce global greenhouse gas emissions through innovation and adoption of energy storage technologies.

Key Financial Highlights:

• The company is expected to commence its battery production in between 2024 to 2025. Currently the group is working on developing multi-layer cells, which is believed to be an integral part of the company’s product.
• The quarter was marked by an increase in Research and development costs and higher General and administrative expense. Loss from operations widens to USD 53.832 million in Q3FY21, as compared to USD 20.690 million in pcp.
• Net income stood at USD 15.351 million, as compared to a net loss of USD 375.854 million in pcp.
• Net cash used in operations stood at USD 83.302 million for 9MFY21, as compared USD 34.114 million in pcp.

Stock Recommendation:

The stock of QS has corrected ~33% and ~61% in the last nine months and one year, respectively, which indicates a lower investor’s interest. The company is likely to commence its production in between 2024 to 2025. The company is yet to recognize its revenue and is being funded by the equity. Hence, due to the absence of any stable income and cash flows, the group might witness liquidity issues, which remains a key challenge. Hence, considering the aforesaid facts, we give a ‘Watch’ stance on the stock of QS at the last traded price of USD 20.68 on January 14, 2022.

Technical Price Chart (as of January 14, 2022). Analysis by Kalkine

Nio Inc Class A ADR

Nio Inc Class A ADR (NYSE: NIO) is an automotive manufacturer based in China, specializing in the electric vehicle market. It also provides subscription services and charging solutions to the growing EV market.

Key Highlights:

• On 3 January 2022, the company has announced repurchase right notification for 4.5% convertible senior notes which is due in the year 2024. The repurchase right expires at 5:00 p.m., on Friday, January 28, 2022 (New York City time).

• As per the 4^th quarter delivery updates announced on 1^st January 2022, the company has delivered 10,489 vehicles in December 2021, increased by 49.7% year-over-year. Further it has delivered 25,034 vehicles in three months ended December 2021 which has increased by 44.3% year-over-year.

• Company’s total revenue has increased by 116.6% to USD 1,521.8 million in the Q3 2021 as compared to USD 702.44 million in Q3 2020.

• EBITDA margins of the company is also improving remarkably, from -21.9% in 2020 and -7.9% in 2021, to a near break-even -0.2% in 2022. Hence, NIO should begin generating profits in coming quarters.

• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, indicating a bearish trend
• Stock is leaning towards the lower band of the 52-week range of USD 27.52 to USD 64.60.

Technical Price Chart (as of January 14, 2022). Analysis by Kalkine

Conclusion: Considering the macroeconomic conditions, rising sales numbers, improved margins, Negative ROE, and bearish technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 30.95, up 1.54% as of January 14, 2022.

*The reference data in this report has been partly sourced from REFINITIV.

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