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Why ChargePoint Stock Plummeted Today
CHPTChargePoint(CHPT) The Motley Fool·2025-02-12 00:24

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 5billioninfundingforEVchargingnetworkexpansionhasledtostate−levelresponsesthatnegativelyimpactedChargePoint′sstock[2][3]−ThefundingforEVchargingstationswasestablishedunderthe2021BipartisanInfrastructureLaw,withdisbursementsplannedthrough2026,butitsfutureisnowuncertainduetotheadministration′sactions[3]−ChargePoint′ssharepricehasdecreasedapproximately685 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]