CHPT - Why ChargePoint Nikola and Polestar Are All Plunging This Week
2023-09-07 15:57:57 ET
Electric vehicle (EV) sector stocks have been a big focus as investors hoped a rising tide would lift all boats. But even as EV adoption grows, some companies aren't growing as much as investors hoped. That has led some to bail out of the more speculative companies and focus on expected winners. That played out this week as several money-losing EV stocks tanked.
EV charging network company ChargePoint (NYSE: CHPT) , electric truck maker Nikola (NASDAQ: NKLA) , and EV maker Polestar Automotive (NASDAQ: PSNY) all had dropped by double digits as of late Thursday afternoon. ChargePoint shares led the declines, down by about 19%. But Nikola and Polestar stocks were also sinking by 13.6% and 13%, respectively, according to data provided by S&P Global Market Intelligence.
ChargePoint surprised investors with earnings and guidance this week that didn't meet expectations. The company grew revenue by 94% in its 2023 fiscal year that ended Jan. 31, 2023. But in its fiscal 2024 second-quarter report, ChargePoint said it sees revenue growing only by 29% to 35% this fiscal year. Management believes it might not even see any sequential growth in the current quarter.
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Why ChargePoint, Nikola, and Polestar Are All Plunging This Week