Electric vehicle charging stock, ChargePoint (CHPT) is accelerating.
Up 13% on a volume spike to 17.1 million, as compared to daily average volume of 9.9 million, the stock could see higher highs.
All thanks to earnings and future growth.
For its second quarter, revenue jumped 93% to $108.3 million, which beat expectations for $103 million. It’s also the first time CHPT revenue has been above $100 million. And while gross margins did fall two percentage points to 17%, it was better than the eight-percentage point drop in the first quarter of the year. We also have to consider that ChargePoint total EV charging port installations jumped 70% year over year, and 7% sequentially.
Even better, the company expects to see 100% growth in third quarter revenue. And it’s full-year projection of $450 million to $500 million in sales tells us there’s big growth ahead.
Helping, California is set to prohibit the sale of gasoline-powered calls by 2035.
“The rule, issued by the California Air Resources Board, will require that 100 percent of all new cars sold in the state by 2035 be free of the fossil fuel emissions chiefly responsible for warming the planet, up from 12 percent today. It sets interim targets requiring that 35 percent of new passenger vehicles sold in the state by 2026 produce zero emissions. That would climb to 68 percent by 2030,” according to DNYUZ.com.
And remember, the Biden Administration also just announced that its committed to build a national network of 500,000 EV charging stations by 2030.
In short, CHPT could easily rev higher.