CAMPBELL, Calif. - ChargePoint (NYSE:CHPT) Holdings, Inc. (NYSE: CHPT), a prominent player in electric vehicle (EV) charging solutions, has secured over $19 million in awards to establish 248 DC fast charging ports across 45 sites on California highways. The funding, part of the National Electric Vehicle Infrastructure (NEVI) program, was approved by the California Energy Commission (CEC) and California Department of Transportation last week.
The planned charging stations will be situated along heavily trafficked California highways, addressing the current EV-charger congestion. This initiative is set to enhance the charging infrastructure on interstate highways like I-5, connecting major cities and communities throughout the state.
Rick Wilmer, President and CEO of ChargePoint, emphasized the company's commitment to providing top-notch charging solutions for various scenarios, including on-the-go charging. He highlighted the importance of the NEVI-funded locations for EV drivers to access charging services easily through the ChargePoint mobile app.
ChargePoint, along with its partners, has been a frontrunner in acquiring NEVI funds, with almost $90 million allocated for around 150 sites, equating to approximately 700 fast charging ports in 21 U.S. states. The NEVI program's goal is to foster the development of accessible, reliable DC fast charging infrastructure along U.S. highways.
The majority of the funded sites will feature ChargePoint Express Plus charging stations, capable of delivering fast charging speeds up to 500kW. These stations are designed to charge all current electric vehicle models and can service two vehicles simultaneously. The technology includes a proprietary cooling system to maintain optimal charging speeds.
ChargePoint's announcement contains forward-looking statements regarding the expected funding, timeline, and benefits of the NEVI awards. These statements are subject to risks and uncertainties, such as potential delays in implementation or failure to meet grant requirements, which could affect the anticipated outcomes.
The company, established in 2007, has been at the forefront of EV charging innovation and offers a comprehensive range of software, hardware, and services for the EV ecosystem in North America and Europe. ChargePoint's network facilitates over 10 billion electric miles driven and aims to continue its contribution to reducing global emissions and transforming transportation.
This news is based on a press release statement from ChargePoint Holdings, Inc.
In other recent news, ChargePoint Holdings Inc. has seen a series of developments. Despite a year-to-date decline in stock, the company has maintained an Overweight rating from CapitalOne, which also predicts a potential turnaround for the company. ChargePoint has made some strategic moves, including management changes and agreements aimed at charger development and manufacturing, which are expected to stimulate growth and margin expansion.
On the personnel front, ChargePoint has appointed David Vice as its new Chief Revenue Officer, a move aimed at propelling the company's growth. Meanwhile, the company's second-quarter fiscal year 2025 revenue of $109 million fell short of the estimated $114 million. Analyst firms Goldman Sachs (NYSE:GS) and RBC Capital have maintained a Sell and Sector Perform rating on the company respectively.
Another recent development is Switch (NYSE:SWCH), a data center operator, considering an initial public offering (IPO) that could value the company at around $40 billion. Despite some financial challenges, ChargePoint's management has noted higher utilization rates on its charging network and growing customer interest in projects as potential revenue boosters in fiscal years 2026 and 2027. The company is focusing on improving hardware margins and subscription services, with the aim of becoming adjusted EBITDA positive by fiscal year 2026.
InvestingPro Insights
ChargePoint Holdings, Inc. (NYSE: CHPT) has demonstrated its ability to secure significant funding for expanding its fast charging network, which is essential for its growth strategy in the electric vehicle (EV) infrastructure market. However, according to InvestingPro, the company is facing financial challenges that investors should be aware of. ChargePoint is quickly burning through cash, and analysts have revised their earnings downwards for the upcoming period. Moreover, they anticipate a sales decline in the current year, which raises concerns about the company's near-term revenue growth prospects.
From a financial standpoint, ChargePoint's market capitalization stands at $617.16 million, reflecting the investor sentiment towards the company's value. The company's revenue in the last twelve months as of Q2 2025 was $441.7 million, but it experienced a decline of approximately 20.94% during this period. Additionally, the gross profit margin was reported at 11.16%, indicating the company's efficiency in managing its cost of goods sold relative to its sales. These metrics suggest that while ChargePoint is expanding its infrastructure, profitability and cost management remain areas for improvement.
Investors should also note that ChargePoint's stock has been subject to high price volatility, which is confirmed by the significant price fluctuations over various timeframes, including a 72.01% drop in the one-year price total return as of the end of 2024. This volatility can be a double-edged sword, offering opportunities for high returns but also posing greater risks. ChargePoint does not pay a dividend, which means that investors looking for regular income streams might not find the stock appealing. Furthermore, the company operates with a moderate level of debt, which is a crucial factor to consider when assessing its financial health.
For those interested in deeper analysis, there are 15 additional InvestingPro Tips available on the platform, which can provide more comprehensive insights into ChargePoint's financial health and market performance. These tips can be accessed by visiting the InvestingPro site for ChargePoint at https://www.investing.com/pro/CHPT.
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