- ChargePoint Holdings failed to meet their Q3 2022 revenue estimate.
- The EV industry can help the company to grow considerably in future.
- CHPT stock was trading at the market price of $11.64.
ChargePoint Lags in Q3 Revenue
Electric vehicles will undoubtedly provide a better environment friendly future but they require a robust framework for a smooth transition. ChargePoint Holdings (NYSE: CHPT), an EV infrastructure provider, is doing the best they can to make this a reality. The company recently revealed their third quarter earnings this year showing lower than estimated revenue. CHPT stock was currently trading at the market price of $11.64, down by over 4% in the past 24 hours.
Still the company has generated better revenues in contrast to the previous quarter. They generated $132.3 million with a (5.26%) surprise. Though the numbers did not meet the expectations, the organization has performed better every quarter this year. They generated $81.63 million during Q1 2022 and $108.29 million in the following quarter.
ChargePoint Holdings landed a deal with Nikola, a heavy duty commercial battery electric vehicles manufacturer, to provide charging infrastructure to the company’s fleet. The company also partnered with Goldman Sachs Renewable Power in March 2022 to provide superior EV charging solutions.
CHPT Stock Price Analysis
CHPT stock has shown a constant downtrend over the past three months. The share was trading around $19 during September 2022. The chart shows falling resistance levels from $16 to $14. Currently it maintains a support zone around $1-0.5 to $11.5, similar to July 2022.
Demand for electric vehicles is rising and several companies have already forayed into the space. Experts believe that this sector can become a $1.1 Trillion industry by 2030 at a CAGR of 23%, more than the current crypto market cap. Tesla (NASDAQ: TSLA) is currently the largest company in the sector with a market cap of $606 Billion.
Rivian Automotives (NASDAQ: RIVN), another EV manufacturer, landed a deal with Tenneco to enhance their R1T pick-up trucks and R1S SUVs. Apart from this, mainstream automotive industries too, are focusing on the increasing EV demand including Ford, Chevrolet, Nissan and more.
Nissan has launched Nissan Leaf, the cheapest EV in their fleet which costs around $27,400. Chevrolet’s Bolt which provides 2520 miles per charge. Ford has its Mustang Mach-E, Ford has its own fleet of F-150 series with Lightning pick-up truck launched back in the spring 2022.
Considering the amount of carbon footprint left by traditional vehicles, the automobile industry will turn their heads toward electric vehicles. Companies like ChargePoint can take advantage of the situation to show their potential to offer robust infrastructure for these vehicles.
Source: https://www.thecoinrepublic.com/2022/12/04/chargepoint-holdings-shows-improved-revenue-despite-failed-expectations/