ChargePoint's revenue is declining amid rising EV costs and challenging political environment

From Yahoo Finance: 2025-05-18 08:15:00

ChargePoint’s revenue is declining as electric vehicles become more expensive, potentially impacting demand. The current political environment is also challenging for the EV industry. ChargePoint is struggling to boost sales and establish itself in the competitive EV market, making its stock less attractive for investors.

ChargePoint’s revenue dropped 18% in fiscal 2025 to $417 million, with a projected decline to $100 million in the first quarter of fiscal 2026. Networked charging system sales fell by 35%, while subscription sales grew by only 20%. This slow growth is concerning for a company trying to establish itself in the EV market.

The cost of electric vehicles has risen due to supply chain constraints and inflation, with the average transaction cost now at $59,200 compared to $46,900 for gas-powered vehicles. Tariffs have further increased costs, impacting demand and hurting companies like ChargePoint.

Despite a slow rise in EV sales, ChargePoint needs faster adoption to succeed. Political decisions, such as potentially ending federal tax credits for EV buyers, could further dampen demand. ChargePoint’s sales decline and uncertain market conditions make its stock less appealing for investors.

Read more: Is ChargePoint Stock a Buy Now?