There’s nothing wrong with investing directly in electric vehicle (EV) manufacturers. However, you can also participate in the vehicle electrification market through a position in Chargepoint (NYSE:CHPT). Indeed, some folks would say that there’s more upside potential in CHPT stock than there is in the automakers.
Recently, the share price pulled back from its peak, but that could be more of an opportunity than a problem. We could be looking at a real bargain here, assuming there are reasons to believe CHPT offers value to its stakeholders.
But we don’t even have to assume that this is the case, as there’s data that clearly indicates growth possibilities for both the charging industry and for Chargepoint in particular.
So, it’s perfectly fine if you’re somewhat obsessed with the electric vehicle revolution. As long as you stand by value-added businesses like Chargepoint, you can potentially profit over the long term.
CHPT Stock at a Glance
As always, InvestorPlace contributor Sarah Smith did a rock-solid job of reporting on the special purpose acquisition company (SPAC) merger that helped Chargepoint go public.
Before CHPT stock started trading on the New York Stock Exchange, investors could indirectly trade Chargepoint through the shell company known as Switchback Energy Acquisition.
That company traded as SBE stock, but it’s gone now. With the reverse merger having been approved on Feb. 25, 2021, Chargepoint was poised to make history as the first publicly traded global EV charging company.
As it turned out, however, much of the excitement surrounding this event had already been priced into SBE and CHPT stock. Thus, in 2020, the share price ran up from around $10 to a 52-week high of $49.48, reached on Dec. 24.
The first few months of 2021 brought lower prices for Chargepoint shares. Today, the stock is changing hands at about $20 per share.
This doesn’t have to be viewed as bad news, though. For folks who’ve been waiting on the sidelines, this price retracement could be a chance to accumulate CHPT stock at a more favorable entry point.
An Inflection Point
Investors and observers have witnessed a massive surge of interest in the electric vehicle market. Yet, that industry could be facing an imminent inflection point, signaling more growth in the coming years.
The consensus opinion among experts appears to be quite bullish. For example, Bloomberg estimates that the number of electric vehicles sold will surge from 1.7 million units in fiscal year 2020 to 26 million units in 2030.
Deloitte is even more optimistic. That firm estimates that electric vehicle sales will reach 31.1 million units by 2030. Furthermore, as InvestorPlace contributor Robert Lakin reports, “Bloomberg NEF estimates EVs will make up 10% of all vehicles sold by 2025 and increase to more than 29% by 2030.”
And of course, that market can’t possibly expand at such a rapid rate unless the charging infrastructure grows along with it. This bodes well for CHPT stock.
Capitalizing on the Opportunity
Chargepoint states that the total cumulative investment in EV charging infrastructure in the U.S. and Europe is expected to reach $60 billion by the year 2030. Plus, that figure is projected to increase to $192 billion by 2040.
How can investors capitalize on this hyper-growth opportunity? Look to CHPT stock, as Chargepoint is a major player in the charging market.
Impressively, the company has “more than 4,000 commercial and fleet customers and has delivered more than 87 million charging sessions to date.”
Plus, the company’s success has translated into robust revenues. For fiscal year 2021, Chargepoint recorded over $146 million in revenues. The company also reported shipping 31,263 charging ports during that time.
By fiscal year 2026, Chargepoint expects that it will ship 425,060 charging ports (Page 27). Moreover, for that same fiscal year, the company forecasts that its revenues will be a whopping $2.1 billion.
There’s no denying that the electric vehicle industry is expanding. Experts are preparing for that growth to persist over the coming years.
With that, investors should be ready for the EV charging market to continue on its upward trajectory. One way to prepare for this is by starting or adding to a position in CHPT stock today.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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