ChargePoint Holdings Inc. (NYSE:CHPT) has secured its spot as the market leader in the U.S. EV charging network, boasting a commanding 32% share and more than 70,000 ports nationwide.

The company’s network has overtaken Tesla Inc (NASDAQ:TSLA) and other major players, highlighting ChargePoint's expansive reach amid growing EV adoption. Despite this impressive lead, JPMorgan analyst Bill Peterson maintains a cautious stance, placing ChargePoint on the firm's Short Ideas list.

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Market Growth Outpaces EV Sales

The U.S. EV charging sector witnessed record-breaking growth in 2024, with over 40,000 public chargers deployed — up from 27,000 in 2023. Peterson noted that the deployment of DC Fast and Level 2 chargers significantly outpaced the growth in underlying EV sales.

However, this rapid expansion has created utilization challenges, as the fleet of fast chargers struggles to keep pace with rising demand. Adding to the strain are sluggish subsidies and high capital expenditures, both of which are expected to maintain pressure on charger utilization into 2025.

Operational, Political Risks Loom

ChargePoint’s dominant market position hasn't shielded it from industry headwinds. Peterson cautions that demand recovery remains unclear, particularly as commercial and fleet customers delay new deployments amid tightened budgets and uncertain economic conditions.

Adding to these concerns, political risks loom large. Peterson highlights the possibility of weakened EV tax credits under a potential “Trump 2.0” scenario, which could significantly impact consumer EV adoption and customer sentiment.

On JPMorgan’s Short Ideas List Despite Long-Term Potential

While JPMorgan acknowledges improvements to ChargePoint’s cost basis this year, the firm remains on its Short Ideas list due to ongoing risks.

Negative year-over-year growth trends and broader market uncertainties contribute to the tempered outlook.

According to Peterson, a rebound in EV sales is crucial for restoring investor and customer confidence.

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Photo: Courtesy ChargePoint