Wednesday, 1 February 2023

Business News

77% Off Highs, ChargePoint Stock (NYSE:CHPT) Looks Exciting

77% Off Highs, ChargePoint Stock (NYSE:CHPT) Looks Exciting

Though EVs represent exciting upside potential, they also present wild variabilities. Thus, investors should consider ChargePoint (NYSE:CHPT) stock (currently 77% off its highs), which theoretically offers a more predictable, brand-agnostic investment. I am bullish on CHPT stock long term, although investors should prep for a choppy ride.

In all likelihood, investors who bank on individual EV brands stand poised to gain the greatest return — assuming, of course, that the target brands rise above the others. Unfortunately, the downturn of 2022 and the subsequent pressures on the consumer economy exposed the contenders from the pretenders. What’s worse, even the contenders suffered sharp losses last year.

To be fair, even infrastructure plays like ChargePoint did not receive an exemption from volatility. Thus, investors considering CHPT stock should be forewarned: this will likely not be an easy trade by any stretch of the imagination.

At the same time, from a narrative standpoint, ChargePoint essentially offers tickets to the big game. In contrast, those who bank exclusively on individual EV stocks are betting on which team will win. Though infrastructural plays offer less emotional exuberance, CHPT stock and its ilk bring more credibility to the table.

CHPT Stock Doesn’t Have to Blink First

While seemingly everyone wants to rush into the EV space, it’s important to consider the sector’s chicken-and-egg conundrum. For EVs to truly flourish, the infrastructure must be available. On the other end, for infrastructure providers to justify their enormous investments, EVs must flourish. So, which side will blink first?

The EV sector may be unique in that the eggs have already hatched. With sector leader Tesla (NASDAQ:TSLA) demonstrating the viability of EVs – at least for the well-to-do demographic – hordes of would-be competitors jumped on board. In other words, individual EV brands are eager to introduce their electric-powered cars to the world, boding well for CHPT stock.

The current run of EVs represents the first wave of soldiers charging the hill, but the average price of a new EV is too far high up the scale for most households. Therefore, the present batch of exciting EVs that sport price tags approaching and sometimes over six digits will whet the appetite of the affluent.

Eventually, though, the average consumer will want to get in on the action. Thanks to economies of scale – particularly from the big…

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