ChargePoint Tesla Outpaces EV Network Market Share, But JPMorgan Remains Cautious
ChargePoint Holdings Inc. (NYSE: CHPT) confirmed its position as the market leader in American EV charging A network that has a 32 percent share nationwide and boasts more than 70,000 ports.
The company’s network has passed Tesla Inc (NASDAQ:TSLA) and other major players, highlighting ChargePoint’s wide reach among EV adoption. Despite this impressive leadership, JPMorgan analyst Bill Peterson ChargePoint takes a cautious stance by placing it on the company’s shortlist of ideas.
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Market growth outpaces EV sales
The US EV charging sector sees record-breaking growth in 2024, with more than 40,000 public chargers deployed – up from 27,000 in 2023. Peterson says the deployment of DC Fast and Level 2 chargers will significantly outpace EV sales growth.
However, this rapid expansion has created usability challenges. The changes will be compounded by slower subsidies and higher capital costs, both of which are expected to put pressure on charging usage through 2025.
Practical, political risks loom
ChargePoint’s core market position has not protected it from industry headwinds. Peterson cautions that demand for recovery is unclear, especially as commercial and fleet customers delay new deployments amid tight budgets and uncertain economic conditions.
Along with these concerns are many political concerns. Peterson highlights the possibility of a weakened EV tax credit in a “Trump 2.0” scenario, which could seriously hurt consumer EV adoption and consumer sentiment.
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Despite its long-term potential, it is on JPMorgan’s shortlist
While JPMorgan has received improvements to ChargePoint’s cost base this year, the firm remains on the short list of proposals due to ongoing concerns.
Year-over-year negative growth trends and broader market uncertainty contribute to the pessimistic outlook.
