From Nasdaq:

Shares of ChargePoint (NYSE: CHPT) have fallen 75% in 2023. The EV market, which includes chargers, faces challenges while the stock lost as the company reported losses piling up, a shortage of funding, and the need to switch to a new charging standard.

ChargePoint’s primary source of revenue comes from selling chargers. The company makes the majority of its revenue from the sale of “Networked Charging Systems, Cloud Services, and extended parts and labor warranties”. However, the company’s revenue of $110.3 million, $73.9 came from Networked Charging System sales while $30.6 came from subscriptions.

The US charging infrastructure is moving to the North American Charging Standard developed by Tesla, this $CHPT stock has plummeted given the challenge of competing with Tesla superchargers and the fact that it devalues ChargePoint’s position.

ChargePoint is starting from a position of weakness as their existing business of selling chargers and services to the existing network of chargers has not been profitable. How will a further commodified market affect the company’s bottom line?

It is debated whether EV charging will ever be a profitable business, with chargers essentially providing a commodity (electricity) through a commodity plug (NACS) to vehicles. Given $CHPT’s history of losses, can the company expect to make enough revenue to cover costs and show growth?

The Motley Fool has expressed strong sentiments that ChargePoint isn’t a buy right now, suggesting there are other stocks that could produce monster returns in the coming years without the risk that $CHPT is currently facing.



Read more: Is ChargePoint Stock a Buy?