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 NIO for its valuation, Left called out electric vehicle charging station stock Blink Charging Co 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 SOLO “a complete joke.”

A Better EV Alternative: On Monday, Citron urged Blink investors to instead consider buying Switchback Energy Acquisition 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.