Why ChargePoint Stock Is Down 25% This Week

ChargePoint Holdings (CHPT -17.46%) provided its quarterly update this week and disappointed investors. That, along with the bigger picture of electric vehicle (EV) sales, has investors ditching ChargePoint stock.

As of Thursday afternoon trading, ChargePoint shares are down 25% this week, according to data provided by S&P Global Market Intelligence. This has driven the stock near its 2024 lows and is down nearly 40% year-to-date.

ChargePoint revenue is declining

The investment thesis for electric vehicle charging companies like ChargePoint is largely based on growing global demand for electric vehicles. But new entrants to the EV market love it General Motors, Ford Motor Companyand Volkswagen it is limited to production plans. And just this week the Swedish automaker Volvo said it was abandoning its plan to sell only electric vehicles by 2030.

These decisions came as a market leader adze produced 14% fewer electric vehicles in the second quarter compared to the same period last year. Declining electric vehicle sales ended up hitting ChargePoint and its growth plans hard. Investors were disappointed by the $109 million in sales the company reported in the fiscal 2025 second quarter ended July 31, 2024. Even more disappointing was the company’s estimate for fiscal third-quarter revenue of just $90 million. dollars in the middle of the guidance range.

ChargePoint also said it will reorganize its global workforce to reduce headcount by about 15 percent. The company also pushed its profitability targets. It previously hoped to report positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) on a non-GAAP (adjusted) basis by the end of January 2025. It has now pushed that back by up to a year.

The reaction to all his news makes sense. ChargePoint’s business is decaying, and that may not change unless or until EV sales growth reignites. Without more electric vehicles on the road, ChargePoint will likely remain in survival mode.