ChargePoint Holdings Inc CHPT shares closed Wednesday down 17.01% to $1.22. Electric vehicle-related stocks are trading lower after Donald Trump won the 2024 presidential election. Investors may be weighing future policy-making decisions that could impact the industry.
Trump’s return to office, alongside a Republican-controlled Senate and a leading position in the House of Representatives, signals a sharp pivot away from the climate-focused policies pursued by the Biden-Harris administration.
What To Know: Investors are reacting to fears that Trump’s proposed policy shifts could undermine the EV sector, including infrastructure developments crucial to ChargePoint’s business model.
Throughout his campaign, Trump made it clear that he intends to roll back green energy subsidies and incentives that have been key to the growth of EV infrastructure. His tax policy agenda includes rescinding federal tax credits for green energy projects, a move expected to slow the pace of EV adoption as it would make EVs more expensive for consumers.
Under the Biden administration, the EV market benefited from substantial federal support, including charging infrastructure tax credits and rebates that have helped ChargePoint expand its network and accelerate growth.
Trump’s proposed cuts to these initiatives raise questions about the future demand for charging stations, a primary revenue driver for ChargePoint.
What Else: Analysts are also concerned about the impact of Trump’s proposed tariffs and trade policies on the EV industry. Trump’s plan to impose a universal 10% tariff on all imports, alongside a 60% tariff on Chinese goods, could increase costs for manufacturers and suppliers in the EV supply chain, as many EV components, such as batteries, are still sourced internationally.
For ChargePoint, which relies on a global supply chain for equipment and infrastructure, these tariffs could increase costs, squeeze margins and limit the availability of critical components, potentially delaying installations. Higher tariffs could also drive up prices for EVs, reducing consumer demand, and further suppressing the market for charging networks.
When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.
Shares of ChargePoint have decreased by 55.29% in the past year. An investor who bought shares of ChargePoint at the beginning of the year would take a loss of $0.94 per share if it was sold today. The stock has fallen 11.87% over the past month, meaning an investor who bought shares on Oct. 1 would see a capital loss of $0.08.
Investors may also consider market dynamics. The Relative Strength Index can indicate whether a stock is overbought or oversold. ChargePoint stock currently has an RSI of 75.68, indicating overbought conditions.
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ChargePoint has a 52-week high of $3.54 and a 52-week low of $1.20.
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Photo: Courtesy ChargePoint
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