CHPT - Why ChargePoint Stock Crashed Today
2023-10-11 14:43:48 ET
Shares of ChargePoint Holdings (NYSE: CHPT) crashed Wednesday afternoon, trading 14.5% lower as of 1:45 p.m. ET. Investors dumped shares of the electric vehicle (EV) charging infrastructure company after it announced plans to raise more funds via a share sale.
ChargePoint announced that it has secured a commitment from institutional investors to purchase its common stock worth $175 million. The company also said that it had already raised $57 million through a stock sale during the third quarter. In total, it is raising $232 million by issuing new stock.
There are two major reasons this development has irked investors in ChargePoint. First, the sale of fresh stock dilutes the wealth of existing shareholders, and that puts downward pressure on the stock.
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Why ChargePoint Stock Crashed Today