ChargePoint shares experienced a sharp decline of nearly 38%, hitting a record low on Friday, following the company's reduction of its third-quarter revenue forecast and significant executive changes.
ChargePoint now anticipates third-quarter revenue to fall within the range of $108 million to $113 million, a substantial decrease from its earlier projection of $150 million to $165 million. The company attributes this decline to sluggish demand resulting from delays in electric vehicle deliveries in both North America and Europe. The third-quarter results are scheduled to be disclosed on December 6.
In tandem with the revised outlook, California-based ChargePoint announced the immediate replacement of its long-serving Chief Executive, Pasquale Romano, with Rick Wilmer, the current Chief Operating Officer. Additionally, Rex Jackson, ChargePoint's Chief Financial Officer, has departed, and Mansi Khetani, a Senior Vice President, will serve as interim CFO.
ChargePoint's stock plummeted to a historic low of $1.95, marking an approximately 80% decrease year-to-date and a substantial drop from its IPO closing price of around $30 in 2021.
Various analysts, including JPMorgan, Cowen, Oppenheimer, and Needham, adjusted their price targets downwards, with one downgrading its rating on ChargePoint's stock. According to LSEG data, the median price target among 22 analysts covering the company is now $8.13, down from $10 a month ago, while their current recommendation is “buy.”
JPMorgan analysts, led by Bill Peterson, acknowledged the muted sentiment in the EV charging space and expressed concerns about the magnitude of the revenue miss, signaling potential challenges for ChargePoint and the broader EV value chain. The repercussions were felt beyond ChargePoint, as other major EV charging network providers like Blink Charging and EVgo also experienced declines in their stock prices.
Oppenheimer analysts, led by Colin Rusch, noted that ChargePoint remains a “clear leader” in technology and comprehensive solutions but downgraded the company's rating to “perform” from “outperform” due to the executive changes, uncertain demand, and the potential for further organizational adjustments.