The future of electric vehicles (EVS) promises ecological benefits and moves to sustainable energy. However, the key barrier stands along the way: insufficient infrastructure. In order to support the widespread acceptance of EV, there is a great need for a network of charging cells, a robust network capacity and innovative battery technology.
Complepoint Holdings (NYSE: CHPT) He is one of the largest providers of EV filling stations North America and Europe. It aims to enable a widespread adoption of EV and is from it. However, the company faces significant obstacles. If you are thinking about buying his shares, think about the next one.
Founded in 2007, Chargepoint grew into one of the largest filling networks in the world, with a significant presence of all over the United States and Europe. As he reported US news and world reportPurboint has over 38,500 cells and 70,000 charging connections in the US, which makes it the largest recharge network EV -as large margin Tesla.
The company has done a good job over the years to grow its network. However, this growth has reached a significant cost. He lost money every year since 2021 went public by merging with Special Purpose Company (SPAC).
Operational costs are high, resulting in a negative free monetary course and net income. This has created reliance on cash reserves for maintaining liquid operations of Chargepoint. The consistent outflow of money is worrying because it forced the company to use the market to finance, significantly diluted with shareholders.
In recent years, the company has faced significant winds that weighed in at its job. For one, larger interest rates in 2022, along with economic uncertainty, caused many of his commercial customers to reduce to consumption. In the midst of this background, there was a slower growth of EV adoption, which brought many car manufacturers to Reduce their production.
The company also faces an increase in Tesla competition, which offers multiple faster fillings than a charge, which manages more older level 2 chargers 2. Tesla opened its charging technology to other car manufacturers, and many of them united with it to licensed it Luke for their vehicles. This is the left charging charging to update your cells for Tesla’s compatible relationships.
Then, there is the return of the federal tax loan of consumer and other federal consumption plans that were set during the Biden administration. The tax loan was an integral part of the acceptance of EVS -AI collection infrastructure. The Law on Reducing Inflation from 2022 has significantly expanded tax breaks and for installation of residential and commercial EV chargers, further encouraging consumers.
