ChargePoint has a large first-mover advantage. ChargePoint is the former, it is not the latter. There’s a difference between being unprofitable and pre-revenue. Will ChargePoint Stock Be Worth the Wait? Within the next 15 to 20 years, many automakers won’t give their consumers the option to buy a car with an internal combustion engine. None of this is to say that we aren’t headed to an electric future. Namely that many of these middle-income consumers may be limited in the type of vehicle they can buy and will be the hardest hit by any disruptions to our energy grid. a house with a garage).” Furthermore, Enomoto raised a fair point in a recent article. However, InvestorPlace’s Josh Enomoto pointed out, “We must realize that when we go down the income strata, consumers will have less access to personal infrastructure (i.e. Second, ChargePoint is wisely targeting the residential market. The economic and environmental case for an electric vehicle takes a bit of a hit when individuals simply aren’t driving that much. Many offices and entertainment venues remain closed. For all the talk of pent-up demand and V-shaped recovery, we’ve yet to see it on a nationwide level. The question is how long will it take before EV adoption is widespread enough to turn ChargePoint’s bottom line positive? Obstacles to Growth Existįirst, there’s the economy. And that means that ChargePoint starts trading with $615 million in cash. The merger raised $480 million in net proceeds. With the merger complete, ChargePoint has some cash to fuel its expansion. And that means that ChargePoint has to spend money now to make money later. But a widely available infrastructure is needed to make consumers confident in buying electric vehicles. The Need Is MutualĬhargePoint needs the addressable market of electric vehicles to expand before it can be profitable. And ChargePoint has no control over that. However this isn’t a case of ChargePoint managing the supply side of the equation. ChargePoint is forecasting annual revenue growth of 60% through 2026. 7 Penny Stocks Close to Busting Through the $5 Mark. ![]() ![]() But the company plans to increase that number to 2.5 million stations by 2025. The company had 115,000 charging stations available worldwide at the end of last year. And by the end of the decade that number could be $190 billion.Īnd I would say that ChargePoint is the unquestioned leader in the space. According to Polaris Market Research, this market will be worth $56.9 billion by 2026. If forecasts are correct, the global market for electric vehicle (EV) charging infrastructure is going to be massive. The opportunity in front of ChargePoint investors is pretty clear. At first, SBE stock soared but it was coming down to earth prior to the merger going final. And that may indeed be true.ĬhargePoint was brought public through the Switchback Energy (NYSE: SBE) SPAC. So what’s going on with ChargePoint stock? If I was a little less cynical, I might say that investors are paying attention to valuation.
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