2024-04-18 09:00:53 ET
Summary
- ChargePoint may remain volatile, attributed to the dangerous combination of being highly shorted and the penny stock prices.
- While it has reported growing annualized subscription revenues, exemplifying the growing stickiness of its platform, it is apparent that the company has yet to achieve a viable operating scale.
- CHPT's position as the US' "largest EV charging network" may not have worked as intended, with the management yet to disclose utilization rates as Electrify America hits over ~25%.
- Combined with the plateauing first round of EV adoption, record high borrowing costs, and the delayed launch of affordable mass-market EVs, CHPT's investment thesis may have stalled.
- As the management offers an underwhelming FQ1'25 revenue guidance, we can understand why market sentiment surrounding the stock has worsened as it has.
We previously covered ChargePoint Holdings ( CHPT ) in October 2023, discussing why the market had grown further pessimistic on its execution as inventories grew, and gross margins suffered in the FQ2'24 quarter.
Combined with the massive insider sells and the stock's constant declines, we had downgraded the stock to a Hold (Neutral) then, with it likely being a new battleground stock as sentiments surrounding EVs soured....
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For further details see:
ChargePoint's Electrification Story May Have Stalled - More Pain Ahead