EVGO - Why ChargePoint EVgo and Polestar Stocks All Plunged This Week
2023-10-27 10:55:43 ET
Shares of some companies in the electric vehicle (EV) sector have been plunging this week. As of early Friday morning, the stocks of charging network companies ChargePoint (NYSE: CHPT) and EVgo (NASDAQ: EVGO) were down by about 17% and 13%, respectively, according to data provided by S&P Global Market Intelligence . At the same time, shares of early-stage EV maker Polestar (NASDAQ: PSNY) had declined by 10.2% from last Friday's closing price.
Investors have had growing concerns about EV sales growth in general as sector bellwether Tesla has been lowering vehicle prices. Tesla wants to retain its leading market share as new entrants come to market. Its strategy for doing so is hurting its profit margin, but it is impacting the unprofitable EV companies far more.
But that's not the only thing Tesla is doing to beat its competitors. ChargePoint and EVgo support the EV industry with their charging network offerings. Many EV manufacturers, however, are also moving to offer customers access to Tesla's Supercharger network. ChargePoint itself announced last week that it was increasing production of Tesla-compatible chargers. That's the right approach if Tesla's North American Charging Standard (NACS) becomes the overall standard.
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Why ChargePoint, EVgo, and Polestar Stocks All Plunged This Week