Failing EV stocks: three companies to avoid
Electromobility has huge potential for long-term growth and sustainability, making it an attractive investment. While this year has been very profitable for many global sectors, including electro-mobility, not all stocks in this sector are bargains. In this article, we take a look at three companies whose shares are not currently worth holding.
ChargePoint $CHPT
ChargePoint is an electric vehicle infrastructure company based in Campbell, California. It operates the world's largest online network of charging stations and develops technology to better integrate electric vehicles. The rapid growth of the industry has led to strong competition, with ChargePoint now lagging behind.
ChargePoint shares have seen a huge correction and are the least attractive they have been in years. The company is struggling with high cash burn and declining revenue, which fell 18% to $107 million in the most recent quarter. Operating losses have also widened, making recovery unlikely in the short term.