BP Trims Workforce In Its EV Charging Business: Report
Portfolio Pulse from Lekha Gupta
BP p.l.c. (NYSE:BP) is reducing its workforce in the electric vehicle charging business, BP Pulse, by over 10%, focusing on the U.S., Britain, Germany, and China for EV market growth. The company aims to have 100,000 charging points by 2030, despite cutting jobs and reducing operations from 12 countries to four. This move is part of CEO Murray Auchincloss' strategy to concentrate on profitable segments. BP shares slightly fell by 0.03% to $39.43. Investors can also engage with BP through Direxion Hydrogen ETF (NYSE:HJEN) and First Trust Energy Income Partners Strategy ETF (NYSE:EIPX).
April 15, 2024 | 3:03 pm
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NEUTRAL IMPACT
BP is streamlining its EV charging business, BP Pulse, by reducing its workforce and narrowing its operational focus to key markets, aiming for significant growth in its charging points by 2030.
The workforce reduction and strategic refocus on profitable markets could lead to short-term investor concerns about growth prospects in the EV charging sector. However, BP's commitment to expanding its charging infrastructure and maintaining its EV ambitions may balance out initial negative reactions, leading to a neutral short-term impact on BP's stock.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
The First Trust Energy Income Partners Strategy ETF (NYSE:EIPX) offers another avenue for investment in BP, potentially feeling indirect effects from BP's EV charging business adjustments.
EIPX, like HJEN, could see indirect impacts from BP's strategic decisions in its EV charging business due to its investment in BP. The short-term impact is expected to be neutral, considering EIPX's diversified portfolio and the broader nature of BP's business adjustments.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Investors can gain exposure to BP's stock through the Direxion Hydrogen ETF (NYSE:HJEN), which may be indirectly affected by BP's strategic changes in its EV charging business.
While HJEN is not directly involved in BP's operational decisions, its exposure to BP means that strategic shifts within BP, such as those in the EV charging business, could have an indirect impact on the ETF's performance. However, the effect is likely to be minimal in the short term, given the diversified nature of HJEN's holdings.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50