Major UK Electric Car Charging Network Faces Drop in Value Amid Demand Concerns
Shares in Pod Point, one of Britain's leading electric vehicle (EV) charging networks, plummeted by over 41% on Monday, wiping around £10 million off its market value. The decline follows a bleak trading update where the company warned that changes to the government's zero-emission vehicle (ZEV) mandate could negatively impact future revenues.
Pod Point, which is majority-owned by energy giant EDF, expects revenues to fall to £53 million in 2024, down from earlier projections of £60 million. The company cited a "challenging backdrop" with only one in ten private car buyers in the UK opting for electric vehicles this year.
Business Secretary Jonathan Reynolds initiated a review of the ZEV mandate after feedback from automakers, who expressed concerns about the strict targets. These targets require 22% of sales to come from EVs in 2024, escalating to 80% by 2030.
CEO Melanie Lane acknowledged that while Pod Point has made progress in managing costs, the weaker-than-expected private EV market has adversely affected financial performance. Pod Point plans to utilize a £30 million credit facility from EDF to support its finances during this difficult period.
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