What's Going On With ChargePoint Stock?

ChargePoint Holdings Inc CHPT shares are trading lower by 3.5% to $2.05 Wednesday morning. The stock is experiencing a drop, likely in reaction to Tesla’s mixed second-quarter earnings and the company’s forecast of reduced vehicle volume growth for 2024 relative to 2023.

Why This Matters To CHPT Investors

Tesla is a major player in the EV market, and its performance can influence the perception and sentiment around the entire EV sector, including companies like ChargePoint that are part of the EV ecosystem.

If Tesla's vehicle growth rate slows, it could signal a broader slowdown in EV adoption, potentially reducing the immediate demand for charging infrastructure. ChargePoint, which provides EV charging solutions, might be perceived as having a reduced market opportunity in the short term.

Tesla's caution regarding future growth and its financial health could be interpreted as indicative of broader economic challenges facing the EV industry. This can lead to a more general sell-off in related stocks, with ChargePoint being affected due to its reliance on the growth and health of the EV market.

Read Also: Mortgage Rates Hit Lowest Point Since February As Investors Anticipate Fed Rate Cuts

How To Buy CHPT Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in ChargePoint’s case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, CHPT has a 52-week high of $8.68 and a 52-week low of $1.21.