Industry Overview - The future of electric vehicles (EVs) promises environmental benefits and a shift toward sustainable energy, but insufficient infrastructure remains a significant barrier to widespread adoption [1] - There is a critical need for a charging station network, robust grid capacity, and innovative battery technology to support the growth of EVs [1] Company Profile: ChargePoint Holdings - ChargePoint Holdings is one of the largest providers of EV charging stations in North America and Europe, with over 38,500 stations and 70,000 charging ports in the U.S., making it the largest EV charging network, surpassing Tesla [2][3] - Founded in 2007, ChargePoint has experienced significant growth but has incurred losses every year since going public in 2021 through a SPAC merger [4] Financial Performance - The company has high operating expenses, resulting in negative free cash flow and net income, leading to a reliance on cash reserves and market funding, which has diluted shareholders [5] - ChargePoint's stock has steadily declined over the past four years, reflecting difficulties in scaling operations and achieving profitability [11] Market Challenges - ChargePoint faces headwinds from higher interest rates and economic uncertainty, which have caused commercial customers to reduce spending and slowed EV adoption [6] - Increased competition from Tesla, which offers more fast-charging ports and has opened its charging technology to other automakers, poses a challenge for ChargePoint [7][8] - The rollback of federal consumer EV tax credits and uncertainty surrounding federal funding for EV infrastructure projects create additional challenges for ChargePoint [9][10] Investment Considerations - Given the uncertain operating environment, slower growth for EVs, and challenges in scaling and profitability, investing in ChargePoint Holdings is currently viewed as too risky [12]

Core Points - ChargePoint's stock experienced a significant decline, closing down 13.6% and reaching a low of 16.5% during trading [1] - The Trump administration's recent order to halt the use of $5 billion in funding for EV charging network expansion has led to state-level responses that negatively impacted ChargePoint's stock [2][3] - The funding for EV charging stations was established under the 2021 Bipartisan Infrastructure Law, with disbursements planned through 2026, but its future is now uncertain due to the administration's actions [3] - ChargePoint's share price has decreased approximately 68% over the past year, resulting in a market capitalization of $302 million [4] - The company is currently valued at over 60% of this year's expected sales, but it continues to incur significant losses, including a net loss of $77.6 million last quarter [5] - The lack of federal support for EV adoption poses challenges for ChargePoint's path to profitability, potentially necessitating new funding through stock sales or debt [5]

Company Performance - ChargePoint Holdings, Inc. closed at $0.92, reflecting a -1.01% change from the previous day, underperforming the S&P 500's gain of 0.72% [1] - Over the last month, the company's shares decreased by 22.5%, significantly lagging behind the Auto-Tires-Trucks sector's loss of 5.48% and the S&P 500's gain of 1.02% [1] Financial Expectations - The upcoming financial results are expected to show an EPS of -$0.08, which represents a 38.46% increase compared to the same quarter last year [2] - Revenue is anticipated to be $101.65 million, indicating a 12.25% decline from the year-ago quarter [2] Analyst Estimates - Changes in analyst estimates for ChargePoint Holdings, Inc. are crucial as they reflect the evolving nature of near-term business trends [3] - Positive revisions in estimates signal analysts' confidence in the company's performance and profit potential [3] Zacks Rank and Industry Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently places ChargePoint Holdings, Inc. at 3 (Hold) [5] - The Automotive - Original Equipment industry, part of the Auto-Tires-Trucks sector, has a Zacks Industry Rank of 149, positioning it in the bottom 41% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Core Insights - ChargePoint Holdings Inc. has established itself as the market leader in the U.S. EV charging network with a 32% market share and over 70,000 charging ports nationwide, surpassing competitors like Tesla Inc. [1] - The U.S. EV charging sector experienced significant growth in 2024, deploying over 40,000 public chargers, an increase from 27,000 in 2023, indicating a strong expansion in infrastructure [2] - Despite its leading position, ChargePoint faces challenges related to charger utilization due to rapid expansion outpacing demand, sluggish subsidies, and high capital expenditures [3] - Demand recovery remains uncertain as commercial and fleet customers are delaying new deployments due to tightened budgets and economic uncertainty [4] - Political risks, such as potential changes to EV tax credits under a "Trump 2.0" scenario, could adversely affect consumer adoption and sentiment towards EVs [5] - JPMorgan has placed ChargePoint on its Short Ideas list despite recognizing improvements in the company's cost basis, citing negative year-over-year growth trends and broader market uncertainties [6]

Market Position and Revenue - The company claims to have seven times more market share than its closest competitor in North America and serves 80% of the Fortune top 50 companies [1] - In Q3 2024, the company generated approximately $100 million in revenue, with subscription revenues growing nearly 20% year-over-year [1] Financial Performance - The company is unprofitable, with a net loss of $78 million in Q3 2024, or $0.18 per share, an improvement from a loss of $0.43 per share in Q3 2023 [5] - The company has a history of losses and negative cash flows, with significant expenses expected to continue in the near term [6] Business Model and Operations - ChargePoint provides EV charging products and services for both consumer and fleet vehicles, with a network of over 329,000 charging points across the US and Europe [4] - The company operates in the early-stage EV adoption market, requiring substantial R&D investment to stay competitive [9] Investment Perspective - ChargePoint is a high-risk/high-reward investment, with potential to become a dominant player in the EV charging network industry [6] - The stock has lost 95% of its peak value since late 2020, presenting a low-cost entry point for investors who believe in the EV future [2] Challenges and Risks - The company faces risks such as inability to raise capital at attractive rates and potential technology missteps that could leave it behind competitors [3] - Despite the positive narrative around EVs, ChargePoint's financial struggles and high operating costs remain significant challenges [7][10]

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

This little EV charging company still faces an uphill battle.ChargePoint (CHPT -1.72%) has disappointed a lot of investors since its public debut. The electric vehicle (EV) charging infrastructure builder went public by merging with a special purpose acquisition company (SPAC) in March 2021, and its stock opened at $32.30.But today, it trades at about $1.25. Its investors headed for the exits as it broadly missed its initial growth estimates and racked up staggering losses. Yet ChargePoint is still a divisi ...

Key TakeawaysChargePoint and General Motors are teaming up to install hundreds of new electric vehicle (EV) chargers, the companies announced Wednesday.The companies said they plan to make and install up to 500 new EV chargers, branded as GM Energy chargers, across the U.S.The new charging stations are expected to become available to the public by the end of next year. ChargePoint (CHPT) and General Motors (GM) are teaming up to install hundreds of new electric vehicle chargers, the companies announced Wedn ...

Core Viewpoint - ChargePoint's shares experienced a significant increase following the announcement of a partnership with General Motors to enhance the installation of fast EV charging stations across the U.S. [1] Group 1: Partnership Details - ChargePoint and General Motors plan to install hundreds of new ultra-fast chargers in strategic locations over the next year, utilizing ChargePoint's Omni Port system for compatibility with both CCS and NACS charging ports [2] - The collaboration aims to provide a seamless charging experience without the need for EV owners to use adapters or select specific charger parking spaces based on connector type [2] Group 2: Company Statements - ChargePoint's CEO emphasized that the partnership represents a significant investment in infrastructure to facilitate fast and easy charging for all, leveraging reliable hardware and an industry-leading software platform [3] - General Motors aims to enhance customer experiences by providing more reliable, accessible, and convenient charging options for EV buyers [3] Group 3: Market Reaction - Despite the initial surge in ChargePoint's stock price by over 12%, the shares later settled with only a 3% increase, indicating that investors may have overreacted to the news [1][4] - Both companies are banking on the growth of EV sales to drive more profitable business outcomes, with this partnership being a strategic step towards that goal [4]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission file number 001-39004 ChargePoint Holdings, Inc. (Exact name of registrant as specified in its charter) ...