CHPT - ChargePoint: Perpetual Speed Bumps

2024-03-07 09:00:00 ET

Summary

• ChargePoint Holdings faces demand issues in the EV charging station segment, leading to a decline in sales and missed analyst estimates.
• The company's operating expense base is mismatched with limited gross profits, resulting in a large net loss and massive cash burn.
• CHPT stock has no value until ChargePoint can eliminate cash burn and the company faces massive speed bumps to reach those levels.

The electric vehicle ("EV") charging station segment continues hitting speed bumps, with the sector now facing vehicle demand issues. ChargePoint Holdings, Inc. ( CHPT ) was a prime example of a company lacking the business model to handle problems faced along the supposed path to profitability. My investment thesis remains Neutral on the stock with ChargePoint now trading below $2, though the risk remains more to the downside than any major rally....

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