Electric vehicle charging stocks fall after GM-Tesla collaboration sends a jolt
Jag_cz
The electric vehicle sector received a jolt on Thursday when General Motors (GM) and Tesla (TSLA) announced a partnership that allows GM EV owners will be able to access Tesla's (TSLA) large SuperCharger network as of early 2024.
Beginning in 2025, the first GM EVs will be built with a NACS inlet for direct access to Tesla Superchargers without an adapter. GM will also integrate the Tesla Supercharger Network into its vehicle and mobile apps, helping drivers quickly and easily locate, pay for, and initiate charging at available Tesla Superchargers.
Looking at the EV sector implications, Bank of America analyst Alex Vrabel and team said they see the GM-Tesla collaboration as somewhat cautious for EVgo (EVGO), but relatively neutral for ChargePoint Holdings (NYSE:CHPT).
"While GM expressly identified ongoing commitment to EVgoâs eXtend business in the release we expect investors will be uneasy about competition as it now has another major partner."
Due to the development, EVgo (EVGO) will now compete more directly for utilization against TSLAâs highly reliable network serving a larger piece of the future EV fleet. The firm kept an Underperform rating in place on EVGO with new uncertainties now further clouding the line of sight to positive cash flow generation.
ChargePoint Holdings (CHPT) is noted to not have direct risk on utilization and its DC Fast network is largely fleet focused. Vrabel reminded that CHPT continues to de-emphasize the long-term market opportunity of DC Fast which is really the focal point of the Supercharger partnerships. BofA reiterated a Buy rating on CHPT.
Shares of EVgo (EVGO) fell 5.52% in premarket trading, while ChargePoint Holdings (CHPT) was down 3.75%. Wallbox (WBX) was down 1.60%, while Blink Charging (BLNK) shed 0.60%.
More on electric vehicle stocks:

EVs made by General Motors will be able to use Tesla's Supercharger network
ChargePoint: The Problems Are Getting Bigger
EVgo: Paving The Way For Electric Vehicle Adoption
Blink Charging: A Short Squeeze Is Possibly One Charge Away
Seeking Alpha's Quant Rating for ChargePoint
Seeking Alpha's Quant Rating for EVgo