Al Root

Shares of electric-vehicle-charging company ChargePoint Holdings plunged after the company reported weaker-than-expected first-quarter sales, and top-line guidance missed estimates.

EV sales growth has decelerated, slamming the brakes on ChargePoint's growth.

Wednesday evening, ChargePoint announced a first-quarter loss per share of 12 cents, in line with Wall Street estimates, according to FactSet. Sales landed at $97.6 million, down from $107 million a year ago. Analysts were projecting sales of $100 million.

Looking ahead, ChargePoint expects fiscal second-quarter revenue of $90 million to $100 million. Wall Street was projecting about $101 million.

ChargePoint stock was down 13% in premarket trading at 76 cents, while S&P 500 and Dow Jones Industrial Average futures were both flat.

Coming into Thursday trading, ChargePoint stock is down about 50% over the past 12 months. Slowing growth in EV sales, and a loss of policy support have weighed on investor sentiment.

Americans purchased about 1.3 million EVs in 2024, up 7% year over year. EV sales grew 46% in 2023. Growth will continue to be a challenge with less federal support. President Donald Trump plans to eliminate federal purchase tax credits worth up to $7,500 per new EV.

More EVs on the road necessitates more charging equipment. And slowing, uncertain sales growth makes selling charging equipment all the more difficult.

ChargePoint is still trying to generate sales growth, recently partnering with electrical-components maker Eaton. "Our new partnership with Eaton has created the market's only integrated EV charging and power-management solutions, simultaneously giving ChargePoint access to Eaton's extensive distribution channels in North America and Europe," said CEO Rick Wilmer in a news release. "Our new AC charging architecture introduces multiple new innovations that will drive demand across commercial, residential, and fleet applications."

ChargePoint also ended the quarter with almost $200 million in cash on its books. Wall Street projects cash use of less than $50 million in total for the final three quarters of the fiscal year.

Write to Al Root at allen.root@dowjones.com

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June 05, 2025 08:47 ET (12:47 GMT)

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