Tesla Dominates EV Charging Race Installing 6,000 Fast Chargers In 2023, ChargePoint And EVgo Struggle To Keep Up: Report

Electric Vehicle charging operators like ChargePoint Holdings, Inc. CHPT and EVgo Inc EVGO reportedly saw limited growth last year, adding just 410 and 850 fast chargers compared with Tesla, Inc TSLA, which installed 6,000.

Charging installation companies in the U.S. have faced challenges when competing against Tesla, Bloomberg reported. 

The Elon Musk-led electric vehicle manufacturer has established an extensive network of charging stations that utilize a unique connector design, setting it apart from the standard connectors used by the rest of the industry, the report read.

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Charging companies' stocks took a hit in the previous year due to sluggish sales.

Last year, ChargePoint, the operator of the largest electric vehicle (EV) charging network in the U.S., saw a sharp decline in its market value and underwent a change in its chief executive officer.

Rick Wilmer, the new top executive at ChargePoint, mentioned that a significant number of the company's customers were cautious about expanding their charger investments last year due to the uncertain economic outlook, as per the report.

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"They felt they could wait a quarter or two to see how things would settle economically before continuing to invest," Wilmer said in an interview to Bloomberg. "It's getting better, as we're getting more and more data around the economy and it appears we're heading for a soft landing."

In general, U.S. public charging stations, falling short of BloombergNEF's 2023 forecast by 76%, are projected to trail behind China and Europe in the current year, the report read.

Charging operators' reluctance to invest may be partially due to their anticipation of federal funds from a national electric vehicle infrastructure program.

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Price Action: CHPT shares are trading lower by 0.90% premarket to $2.21 on the last check Tuesday, while EVGO shares are trading lower by 0.94% at $3.16. TSLA shares are trading lower by 0.48% to $239.30.

Photo via ChargePoint