Home Business ChargePoint surpasses Tesla in EV network market share, but JPMorgan remains cautious

ChargePoint surpasses Tesla in EV network market share, but JPMorgan remains cautious

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ChargePoint surpasses Tesla in EV network market share, but JPMorgan remains cautious

ChargePoint surpasses Tesla in EV network market share, but JPMorgan remains cautious

ChargePoint Holdings Inc. (NYSE:CHPT) has secured its place as the leader in the U.S. EV charging network, with a 32% market share and more than 70,000 ports nationwide.

The company’s network has been caught up Tesla Inc (NASDAQ:TSLA) and other major players, highlighting ChargePoint’s extensive reach amid growing electric vehicle adoption. Despite this impressive lead, analyst JPMorgan Bill Peterson takes a cautious approach and places ChargePoint on the company’s Short Ideas list.

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Market growth exceeds EV sales

The US EV charging sector witnessed record growth in 2024, with more than 40,000 public chargers deployed – up from 27,000 in 2023. Peterson noted that the deployment of DC Fast and Level 2 chargers significantly outpaced the growth of the underlying EV sales.

However, this rapid expansion has led to usability issues as the fleet of fast chargers struggles to keep up with rising demand. Adding to the pressure are sluggish subsidies and high capital expenditure, both of which are expected to continue to put pressure on charger usage until 2025.

Operational, political risks loom

ChargePoint’s dominant market position has not protected the company from industry headwinds. Peterson cautions that demand recovery remains unclear, especially as commercial and fleet customers delay new deployments due to tighter budgets and uncertain economic conditions.

In addition to these concerns, there are also major political risks. Peterson highlights the possibility of weakened EV tax credits under a potential “Trump 2.0” scenario, which could have a significant impact on consumer EV adoption and customer sentiment.

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On JPMorgan’s short list of ideas, despite long-term potential

While JPMorgan recognizes improvements in ChargePoint’s cost base this year, the company remains on its Short Ideas list due to lingering risks.

Negative year-on-year growth trends and broader market uncertainties contribute to the subdued outlook.

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