(Republican Party News) – Is it just me, or does everything the Biden administration touch get completely and utterly ruined? The latest victim being ChargePoint, a company that makes charging stations for electric vehicles. They were touted by the administration as a means of helping to push and promote their climate agenda on several different occasions. The business is now facing a number of struggles economically speaking.
Nick Pope, a contributor for the Daily Caller reports, “In February, the White House highlighted ChargePoint’s deals with other companies as proof that the administration’s ‘actions on EVs have spurred network operators to accelerate the buildout of coast-to-coast EV charging networks.’ However, in the nearly ten months since, the company’s stock price has lost significant value, ChargePoint CEO Pasquale Romano has stepped down from his post and the company now faces a class action lawsuit.”
“The White House promoted ChargePoint’s partnership with Mercedes-Benz and MN8 Energy ‘to deploy over 400 charging hubs with more than 2,500 publicly accessible (direct current) fast charging ports across the U.S. and Canada,’ as well as the company’s partnership with Volvo and Starbucks ‘to deploy 60 (direct current) fast chargers at up to 15 locations along the 1,350-mile pilot route between Seattle and Denver to be completed by summer 2023.’ Additionally, the White House touted ChargePoint’s agreement with SMTC Corporation to expand charger manufacturing capacity in California,” Pope remarked.
The White House gave ChargePoint two thumbs up for “[investing] in equitable workforce development and [training] a diverse pipeline of skilled workers to build our nation’s infrastructure” back in November 2022 in a press release that zeroed in on examples the administration said were making “major progress” thanks to Biden’s climate agenda. The company was mentioned on several other occasions in press releases that were designed to highlight the positive developments happening in the electric vehicle charging industry.
Sen. Stabenow (D-MI): “I drove my electric vehicle from Michigan to here last weekend and went by every gas station and it didn’t matter how high it was.”
Just wait until she finds out how electricity is produced pic.twitter.com/OS5TN78gbz
— Daily Caller (@DailyCaller) June 7, 2022
“In August 2022, several months before the White House issued the February press release, Biden appointed Romano to the National Infrastructure Advisory Council, a group of private sector and state or local government officials tasked with advising Biden on how to best reduce risks to the nation’s critical infrastructure. Despite the appointment, Romano stepped down as CEO on Nov. 16, as did CFO Rex Jackson, according to Bloomberg News. Between the day before the announcement that Romano was leaving and the day after, the company’s stock lost nearly 40% of its value, according to data from Google Finance,” Pope’s report explained.
The stock price for the company seemed to peak at $46.10 a share back on Christmas Eve 2020 and dropped to $13.38 per individual share on Feb. 15, 2023. Well, it took yet another nosedive this week, dropping down to $2.24. That’s quite a decline, folks.
Looking at the third quarter financial filings for ChargePoint shows that the company’s revenue is 12 percent lower than it was this same time last year. The company revealed a net loss of $158.2 million for the quarter. They lost $84.5 million during last year’s third quarter.
Adding insult to injury, the company is also currently embroiled in a class action lawsuit that accuses ChargePoint and some of its executives of violating the Securities Exchange Act of 1934.
“Specifically, the suit, which covers the time between June 1 and Nov. 16, alleges that the company’s share price became artificially inflated because of false and misleading statements made by company executives. The lawsuit alleges that the company was experiencing elevated component costs and supply overruns, factors that were likely to decrease the company’s profitability by forcing costly impairments,” Pope stated. “The company’s supply chain issues ultimately forced it to announce a $42 million impairment, or reduction, to the value of its inventory in November, according to its third quarter filings.”
“Based on recent investor interactions and multiple negative datapoints across the EV value chain, sentiment in the EV charging space has been muted and we are not surprised that ChargePoint F3Q (third-quarter) revenues would track below expectations,” JPMorgan analysts, led by Bill Peterson, commented in a written investor note dated from November. “However, the magnitude of the miss and the deceleration late in the quarter doesn’t bode well for near-term fundamentals for ChargePoint or the broader EV value chain in general, and EV charging specifically.”
It’s almost like people aren’t sold on the idea of electric vehicles being their main mode of transportation. Wonder why that might be? It couldn’t possibly have anything to do with how unpredictable and unreliable they are, could it? Not to mention they are incredibly expensive. But that’s not stopping the radical left from attempting to push them anyway.
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