IB Net Payout Yields Model

ChargePoint: Insider Selling Hints At Limited Upside


  • ChargePoint insiders have filed to sell up to 13.8 million shares.
  • These selling shareholders will still control ~140 million shares after the offering, placing a cap on the stock until more selling is done.
  • The stock remains insanely expensive at 17x FY24 sales targets.
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In no huge surprise, insiders are filing to sell shares of ChargePoint Holdings (CHPT) with the stock up substantially from the IPO and PIPE prices. The timing though is questionable since ChargePoint has recently fallen from the highs and took another 10% hit on the offering news. My investment thesis remains very negative on the stock and the EV charging station space due to weak financial results and ramping up competition.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Update - July 21

Big problem for other charging stations like $CHPT. Maybe insiders knew $TSLA was going to crush their business model by opening up their Superchargers.

-"We're making our Supercharger network open to other EVs later this year," Tesla (NASDAQ:TSLA) Technoking Elon Musk tweeted in response to a fan message on Twitter.
-"We created our own connector, as there was no standard back then & Tesla was only maker of long range electric cars," he added. "It's one fairly slim connector for both low & high power charging."
-Tesla operates more than 25,000 Superchargers at 2,700 charging stations worldwide, according to its website. If it opens additional stations in the U.S., it may also be able to tap into government funding like grants, tax rebates or green energy credits.

The stock appears set for a rally, but the long term picture is worse due to more competition. 

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