Why ChargePoint Stock Crashed This Week – And What It Means for EV Investors
ChargePoint's stock just hit a speed bump—hard. The EV charging network's shares nosedived this week, leaving investors scrambling for answers. Here's the breakdown.
Wall Street's Reality Check
Analysts finally noticed what crypto traders have known for years: infrastructure plays burn cash faster than a meme coin bull run. ChargePoint's earnings report exposed the ugly math—growth at all costs isn’t working.
The Tesla Factor
Elon’s empire keeps undercutting competitors with cheaper, faster chargers. ChargePoint’s hardware now looks like a Betamax player in a streaming world.
What’s Next?
Either ChargePoint finds a DeFi-style pivot or becomes another cautionary tale. Remember folks—in both EVs and crypto, the middlemen get squeezed first.
Reversal of fortune
ChargePoint ripped the bandage off on Wednesday, formally splitting its stock at a ratio of 1-for-20. It's important to note here that no stock split, reverse or otherwise, changes the underlying value of a company. In this case, the drastically reduced number of shares is offset by a higher per-share price.
Image source: Getty Images.
As is typical in these situations, ChargePoint made the split to regain compliance with its market's minimum price requirement. Specifically, the New York Stock Exchange stipulates an average of at least $1 per share across a 30-day trading period.
The skinny share price is, in many ways, the least of ChargePoint's roadblocks. The company has struggled with declining revenue growth and continuing bottom-line losses. Meanwhile, electric vehicle (EV) sales growth isn't as robust as it was in previous years.
Bullish developments
Not all the news for ChargePoint was discouraging during the week. It launched its Safeguard Care program, which it describes as a service that "provides end-to-end reliability monitoring of ChargePoint charging stations." This should be reassuring to clients and give the company something of an edge over rivals.
