Most experts agree, if the world wants to start reducing the amount of carbon its human population emits then switching from gas powered vehicles to electric ones is essential.
To facilitate this transition, the U.S. government has recently offered generous subsidies to car buyers willing to make the switch. But apparently there is still a disconnect between what the government wants and what its citizens desire.
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"(EV) adoption in America is growing increasingly divided, with the most active states for EV adoption already on the path to parity with internal combustion engine (ICE) vehicles and consumers steadily pulling back on EV purchases in the least-active states," a recent report from J.D. Power said.
ChargePoint Holdings (CHPT) -), is finding that out Friday, with the stock dropping more than 30% in early market trading after the company pre-announced weak third-quarter revenue well below expectations while also announcing that it is changing the top of its management structure.
The California-based EV network charging station manufacturer expects third-quarter sales between $108 million and $113 million, down from its previous guidance between $150 million and $165 million. Wall Street analysts had a consensus estimate of $150 million.
“Our core markets of North America and Europe both came under pressure late in the third quarter, with revenue falling far short of expectations,” said CEO Rick Wilmer in a news release. “Overall macroeconomic conditions, along with fleet and commercial vehicle delivery delays impacted anticipated deployments with government, auto dealership, and workplace customers.”
As of January, 2023, ChargePoint estimated that it held approximately 70% market share of all public AC network chargers in North America. Rivals like Tesla and Electrify America have a stronger fast-charging presence, but if you need AC charging, the station you go to is most likely a ChargePoint station.
So if ChargePoint is struggling to reach revenue expectations, other smaller operations are likely struggling as well.
This week Wilmer, the company's former chief operating officer, replaced outgoing CEO Pasquale Romano, who will remain on as an adviser, while Wilmer was also named company president.
Last week, the company announced it reached one million quarterly active drivers while announcing the rollout of its revamped mobile app.
But this will be the company's second consecutive quarter with a sales miss.
ChargePoint shares were down nearly 35% in early market trading Friday at last check.
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