Why EV Stock ChargePoint Plunged 30.8% in February

ChargePoint Holding (NYSE: CHPT) stock is getting hit from all sides. Shares of the electric vehicle (EV) charging infrastructure company plunged 30.8% in February, according to data provided by S&P Global Market Intelligence, after two unfavorable developments sent panic waves among its investors -- a move by President Donald Trump and a noncompliance notice from the New York Stock Exchange (NYSE).

ChargePoint stock keeps losing charge

In early February, the Trump administration suspended a clean energy program launched by the previous administration that set aside billions of dollars in funding to the states to expand the nation's EV charging network. President Biden set an ambitious goal to build out 500,000 EV charging stations by 2030 and set aside $5 billion to achieve the goal. Although the Biden administration had already made several grants, Trump froze releasing any remaining funds under the program. That means nearly $3 billion worth of funding has now been halted.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Biden's massive clean energy program was a major growth driver for the EV charging industry and its stocks. Not surprisingly, ChargePoint stock took a big hit after Trump's order to suspend the program. ChargePoint has the largest EV charging network in the U.S.

Meanwhile, with ChargePoint stock plunging and its price closing below $1 for 30 consecutive trading days, NYSE issued a notice later in February to the company for noncompliance with listing rules. Although it's a notice of deficiency and does not mean the stock will get delisted from NYSE, ChargePoint will have to "cure" the deficiency to ensure it remains listed.

While these two factors sent ChargePoint stock tumbling, investors were also seemingly dumping the stock in fear last month ahead of the company's earnings.

The only reason ChargePoint stock could rally

ChargePoint's fourth-quarter and full fiscal year 2025 numbers, which came out earlier this month, offered a flicker of hope. Although the company's revenue fell 12% year over year in the fourth quarter, it reported a gross margin of 28% versus 19% in the prior-year period and a 32% improvement in its net loss. ChargePoint also burned less cash in the quarter versus Q3.

However, ChargePoint is projecting revenue between $95 million and $105 million for the first quarter, which would mean a 2% to 12% drop year over year. So while it's good to see the company cutting down expenses and trying hard to reduce its cash burn, it can only do so much if its revenue falls too.

Meanwhile, ChargePoint will have to bump its stock price to ensure it trades above $1 for at least 30 consecutive days to avoid delisting. The only viable option appears to be a reverse stock split -- and there's nothing good to talk to about that.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $286,710!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $44,617!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $488,792!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Continue »

*Stock Advisor returns as of March 3, 2025

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.