US Postal Service is going electric and EV infrastructure provider
The federal agency just signed a contract to provide tens of thousands of charging units.
Blink (Ticker: BLNK) Will Sell Up to 41,500 Units to the Post Office Under an IDIQ Contract, Company announced on Thursday. IDIQ stands for Indefinite Delivery / Indefinite Quantity.
Although the time is not certain, the number is large. Last year, Blink sold or deployed approximately 21,000 charging units.
The post office announced last month that it is purchasing equipment for 14,000 charging stations from three suppliers: Rexel Energy Solutions,
(SIE. Germany), and Blink.
“The Postal Service’s recent announcement to purchase more EVs and build out the necessary charging infrastructure is another step toward developing a complete transition to going electric,” Michael Farkas, CEO of Blink, said in a statement. “This step towards electrification sets an example that we hope all fleet owners will follow.”
Shares of Blink fell 1.3% to $7.65 in afternoon trading. The stock opened up over 7%.
were up 1.1% and 1.8%, respectively.
Why stocks fell during a market rally given the news of the contract is a head-scratcher.
Details of the contract were disclosed by Blink on Thursday, but shares didn’t move when the USPS announced its plans in February. The stock is down more than 14% since then. The S&P is off about 2% over the same period.
Blink is not yet profitable and does not generate positive free cash flow. Stage I companies have fallen out of favor with investors as interest rates have gone up. Blink stock is down about 88% from early 2021 highs.
The contract demonstrates the commitment of the post office to EVs. agency in december announced There are plans to deploy over 66,000 EVs by 2028. According to the Post Office, at least 45,000 will be all-battery electric.
Overall, the USPS plans to spend approximately $10 billion on the electrification of its fleet of more than 200,000 vehicles; 163,000 were purchased before 2002,
Write to Al Root at [email protected]