![]() ![]() ChargePoint Business Overviewįounded in 2007, ChargePoint has created one of the largest charging networks in North America and Europe. ![]() The imminent transition to electric underpins better valuation prospects ahead for ChargePoint if it continues to materialize on its growth strategy over the next five years, making it a reasonable thematic stock pick to add to the long-term investment portfolio at current price levels. ![]() But in the long run, with EV charging infrastructure ultimately replacing traditional gas stations as the mainstream support for mass-market EV adoption, massive growth is on the horizon for the sector. ChargePoint’s network and services will be essential in supporting the continued surge in global EV sales, underpinning significant growth opportunities over the next five to ten years.įrom a valuation perspective, we believe ChargePoint’s stock performance at the moment reflects its near-term intrinsic value given its five-year business plan provided by management, which currently includes expansion of Europe operations through acquisitions, as well as capitalizing on increasing fleet application opportunities. Although ChargePoint does not own many of the 150,000+ active charging ports under its network across North America and Europe, it generates revenue through installing and supporting the charging stations with a variety of cloud-based services that can “let owners easily manage EV charging and help drivers find convenient stations, see station availability and track all charging”. This makes EV charging infrastructure providers like ChargePoint ( NYSE: CHPT) more critical and in higher demand than ever before. Favourable policy support from global governments, such as strict emissions targets, financial incentives, and capital investments made towards increasing accessibility to EV charging infrastructure have also further encouraged EV adoption. It is evident that consumers have shifted towards a permissive attitude for electrified transportation, indicating that the long-term pivot to EVs is imminent. While car sales were down by 16% during the pandemic, global EV sales were up by close to 50%, with fleet conversions to electric accounting for the majority. This is further corroborated by accelerating EV adoption rates observed over the past year. But improvements to battery technology paired with greater availability of charging infrastructure in recent years have played a critical role in assuaging some of the related concerns. “Range anxiety”, which refers to concerns over the limited driving range of electric vehicles (“EVs”), continues to be one of the biggest roadblocks to broader adoption of the emerging mode of transportation. Robertcicchetti/iStock Editorial via Getty Images ![]() This makes the stock a viable long-term thematic investment pick at current price levels. But the eventual replacement of gas stations with EV charging networks to support mass-market EV adoption in the long run underpins better valuation prospects ahead for ChargePoint if it can materialize on its growth plans over the next couple of years.We believe the stock's current price levels are reflective of the company's projected intrinsic value based on its current scale of operations and near-term business outlook.With Europe expansion and greater fleet application a priority in its five-year growth plan, ChargePoint is well-positioned to capitalize on the high-growth opportunities ahead.Accelerated EV adoption encouraged by favourable government policy support and a positive shift in consumer preference for environmentally-conscious purchase decisions will drive a greater addressable market for ChargePoint.ChargePoint, a provider of EV charging hardware, software, and related management services and software, is a market leader within the emerging sector. ![]()
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