Investors are looking forward to a huge week of earnings reports, especially in the growth and modern technology sector. Early-stage electric car (EV) names aren't part of today's coverage wave, however on Monday they are trading down for various other reasons. Shares of high-end EV maker Lucid Group (LCID -4.78%) were down 4.4% since 11:30 a.m. ET. The stocks of charging companies ChargePoint Holdings (CHPT -3.83%) as well as Blink Charging (BLNK -0.53%) were both also lower by 2.9% and 3%, specifically.
All of these names could be reacting to recent news pertaining to industry leader Tesla (TSLA -1.40%). Financiers are still absorbing Tesla's surprisingly strong revenues record from last week. With lcid stock positioned to start building its international business, Tesla's growing lead can become a significant headwind for the start-up. As well as over the weekend, The Wall Street Journal reported that Tesla was preparing to open up several of its united state Supercharger network to non-Tesla owners. That could be an impact to the growth strategies of charging network companies like ChargePoint as well as Blink.
The record claimed Tesla is bidding for a part of the billions in state as well as federal cash dedicated to growing EV acceptance and possession in the united state Tesla has actually already requested funds in California and Texas, and there is $7.5 billion from the $1 trillion framework bill that the federal government will be doling out to states to help build charging networks. ChargePoint and Blink must be well placed to use that cash, but would certainly be an impact if Tesla additionally received some to open up its quick chargers to various other customers.
Tesla currently has concerning 1,440 charging sites with greater than 14,500 billing ports just in the U.S. ChargePoint has greater than 12,000 quick charging ports of its very own, however that includes every one of The United States and Canada in addition to Europe. ChargePoint as well as Blink need to expand out their networks to attain productivity with expanded registration income. Opening Tesla Superchargers to all EVs could be a major headwind for these business to achieve that goal.
Lucid has a different Tesla problem. Lucid has currently announced strategies to develop a second production facility in Saudi Arabia. The firm announced 2 brand-new exec enhancements to its group last week focused on it worldwide growth objectives. The new vice presidents of global logistics and also procedure change will certainly report straight to chief executive officer and Chief Modern Technology Policeman Peter Rawlinson.
Tesla seemed to be having a hard time as it ramps up its 2 new factory, with CEO Elon Musk stating recently the centers were melting billions in cash money. Yet Tesla still created $621 million in complimentary cash flow in the second quarter, so the plants weren't burning through as much cash as Musk seemed to indicate. With Tesla's big lead worldwide, consisting of 2 worldwide manufacturing plants, Lucid will certainly have its work eliminated to achieve favorable cost-free cash flow itself.