Where Will ChargePoint Be in 10 Years?
Electric vehicle stocks have corrected sharply in the last couple of weeks. The recent correction has brought electric vehicle (EV) stocks' valuations to much saner levels from where they have largely been for more than a year. Stock of EV charging company ChargePoint Holdings (NYSE: CHPT) fell 27% in January. The stock already fell more than 50% in 2021.
Let's discuss where could ChargePoint be 10 years from now, and if the recent fall presents an opportunity to buy the stock.
To find the long-term growth prospects for ChargePoint, it is important to first understand how the company operates. The company earns revenue primarily from two sources -- hardware revenue by selling chargers and related equipment, and subscription revenue by selling software services and warranties. ChargePoint's revenue does not depend on the amount of electricity consumed. Instead, it generates revenue mainly from businesses that buy the company's products and services for a fee.
Source Fool.com
