ChargePoint Holdings Inc. (CHPT stock) - EVs and Compliance Rule

ChargePoint Holdings Inc. might be affected by the terms of “Made in America” requirements.
CHPT shares are coming in greens; will the trend continue after compliance?

Compliance with terms of “Made in America” could hurt the growth and expansion plans of EV makers and makers of supporting infrastructure, including ChargePoint Holdings Inc. Last month, the White House laid out a $7.5 billion federal program to accelerate the industry. This follows President Joe Biden’s efforts to build an electric-friendly highway system by 2030.

The Federal EV Program and ChargePoint Holdings Inc.

“Made in America” is an effort by the government to boost the EV industry in the United States. EV charging network companies must set up multiple charging stations and use US-made materials. These rules caught them off-guard, as setting up indigenously built EV charging stations can be cumbersome.

The biggest EV charging network operators in the arena right now are Tesla (TSLA), ChargePoint Holdings Inc. (CHPT), EVgo Inc. (EVGO), and Electrify America. Most services and parts required to set up an EV charging station are imported. This strict enforcement could hurt EV supporting infrastructure supply chains.

Experts say that it shall take around 12 to 18 months to shift production from another country. Compliance with these rules shall put an extra burden on the companies. Moreover, no discount or cuts was announced for the company’s observance of the said rules.

A brief about ChargePoint Holdings

Founded in 2007 and headquartered in Campbell, California, ChargePoint Holdings Inc. provides EV charging solutions and networks in the US and internationally. They provide all-inclusive solutions for all-size fleets and offer a portfolio of hardware, software, and services providing end-to-end solutions for all EV charging needs.

Having offices across the United States and Europe, the company boasts a network of 18,000 EV charging stations, and the numbers are growing rapidly. 75% of the Fortune 500 companies are already their customers.

ChargePoint Holdings Inc. (CHPT) – The Price Game

When writing, CHPT stock was trading at $10.06 with a gain of 2.24%; previous close and open were at $9.84 and $10.00, respectively. In comparison, the fifty-two-week change was a drop of 45.53%. ChargePoint had a market cap of $3.501 billion, a volume of $7.61 million shares, and the average volume of $9.62 million. In contrast, the price is targeted at $19.28 with an upside of 90.4%.

Concerning December 2022 data, revenue gained 92.62% from $152.83 million, while revenue per share was $1.38. Operating expenses jumped 11.99% from $108.09 million, and the operating margin dropped 72.06%. Net income was negative $78.01 million and suffered 29.70%, the net profit margin gained 32.66% from negative $51.05, and the profit margin registered a drop of 73.59%.

The last earnings report was released on March 2, 2023, where the estimated revenue was $164.618 million, while it was reported to be $152.827 million. This came with a surprise of negative $11.791 million, dropping 7.16%.

ChargePoint Holdings Inc. (CHPT) – Candle Exploration

CHPT price has broken the short-term downward-sloping trendline and is touching the moving average. MACD is supposed to have a positive break – these can be considered positive indicators. If the trend continues, the price might move closer to the supply zone. But to do that, the price has to strongly cross the $11.63 mark.

The price is supposed to consolidate below the $11.63 mark for a while. As the demand zone acts as strong support, a breakthrough from that zone is a long shot. It could bounce off the zone and supposedly keep an upward consolidating movement.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing