ChargePoint Stock (NYSE:CHPT)
The ChargePoint stock fell today, along with several other riskier securities. At 3:05 p.m. ET, ChargePoint shares were trading near their day’s lows alongside the rest of the market. At that point, the stock had dropped 5.4%, marking the end of a rough week for investors in the electric vehicle (EV) charging network provider.
What’s the Reason?
After a week in which the U.S. Federal Reserve led a series of global interest rate rises, investors are understandably wary of holding riskier assets. As a result of this “risk-off” mindset, companies still working to generate a profit have seen their stock prices plummet. ChargePoint Holdings (NYSE:CHPT) has seen rapid revenue growth and forecasts its yearly sales to increase by almost 100% compared to the previous fiscal year.
However, it has not yet turned a profit and faces challenges in many areas, from its business strategy to its rivals. ChargePoint stock price decrease this week presents a chance for those who feel the company can leverage its hardware into a sustainable revenue stream and differentiate itself from the competition. That’s because optimistic business and industry reports have been coming out recently.
Last week, the U.S. Department of Transportation (DOT) announced that it will spend $900 million to install electric vehicle (EV) chargers along around 53,000 miles of U.S. highways. That funding comes from the Bipartisan Infrastructure Act passed at the end of the previous year. In all, $5 billion will be allocated to improve and expand the nation’s charging infrastructure, which should be good news for ChargePoint stock.
The necessity of such expansion is backed up by a new report. According to a study published by the International Energy Agency in September 2022, electric vehicles (EVs) were one of just two components judged “on track” for global emissions objectives out of 55 components.
Based on projections made by the organization, electric vehicles will account for 13% of all passenger vehicles sold worldwide in 2022. Good news for ChargePoint stock, which has a presence in the Americas and Europe. It also suggests a high demand for charging infrastructure due to an expected increase in the sale of electric vehicles.
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