Citron Says It's 'Insulting' To Call Blink Charging An EV Stock

Ten days after Citron Research editor and notorious short seller Andrew Left blasted Nio Inc - ADR (NYSE: NIO) for its valuation, Left called out electric vehicle charging station stock Blink Charging Co (NASDAQ: BLNK) as the latest stock caught in the EV bubble.

Citron said Blink’s valuation makes no sense and called the company a “total scheme.” Left said it is “insulting” to call Blink an EV stock.

“New most ridiculous EV stock is $BLNK. No $$ for R&D, management accused of securities fraud, no real revenues,” Citron tweeted.

Related Link: Citron Pulls Plug On Nio, Says Valuation 'Can Never Be Justified'

The Numbers: Bink shares are up 26.2% on Monday to $28.65 and are now up 1,630% in the past year. The company’s market cap is now roughly $1 billion even though the company reported less than $1 million in total revenue in the third quarter.

“Expect a massively diluted deal soon so management can continue to deceive public. This should trade right back to $10 where it is still overpriced,” Citron said Monday.

$BLNK has made no progress expanding downloads or network in years. A total commodity product with no brand. It is an insult to other EV makers to even mention $BLNK as an EV stock, lowest form of shareholder base. This is a $1 bil joke. pic.twitter.com/x4H6CVjSeF

— Citron Research (@CitronResearch) November 23, 2020

Back on Nov. 13, Citron urged investors to cash out of another popular EV stock, China’s Nio.

“After a rocky road of trading, NIO has found itself in unchartered territory that can never be justified by its current standing in the China EV market or its near-term prospects,” Left said.

Last Friday, Left also called Electrameccanica Vehicles Corp (NASDAQ: SOLO) “a complete joke.”

A Better EV Alternative: On Monday, Citron urged Blink investors to instead consider buying Switchback Energy Acquisition (NYSE: SBE), which trades at a similar valuation but has a much larger market share.

“For all $BLNK investors who are naïve, for same mkt cap of $BLNK you can buy ChargePoint $SBE with 73% market share, considering mkt penetration $BLNK should be at $1 per share,” Left said.

Benzinga’s Take: Stock market bubbles are defined by “irrational exuberance” that can temporarily send stock prices soaring to irrational levels. However, shorting stocks that are caught in a bubble can be extremely dangerous given that irrational exuberance can last for years and the ultimate top is only reached once investor enthusiasm has died down.