Any stocks tied to the electric vehicle (EV) industry have not had a great few months. A realization that the EV revolution will take longer than originally anticipated, and legitimate concerns about a slowing economy and the effects of tariffs, have sent EV stocks tumbling.
ChargePoint (CHPT 1.14%), which makes EV charging hardware and software, has not been immune. Its share price has fallen 58% over the past six months as of this writing (April 4). Some investors may be wondering if the company’s stock might soon bounce back, but I’m skeptical.
Here’s why the next 12 months could be difficult for ChargePoint.
Image source: Getty Images.
The EV industry was already cooling
Let me get this out of the way first: I’m a long-term believer in EVs. I own shares of Rivian, and I think the transition to electric vehicles will happen eventually. Let me reemphasize the eventually in that sentence, though.
Anyone who keeps up with the EV industry knows just how difficult it’s been to make the transition happen. Traditional automakers that once touted their new EV models and committed to millions of electrified sales by some future date have since drastically scaled back their plans.
It’s not all their fault. Pandemic-induced supply chain problems caused vehicle prices to climb, and then inflation came along and pushed many EV prices out of range for many buyers. ChargePoint has suffered as a result, because if the EV industry isn’t growing rapidly, people have far less use for its charging stations. The company’s revenue plunged 18% in fiscal 2025 to $417 million.
Automakers have tried to find a middle ground for their EV plans, and have seemingly settled on selling hybrids to consumers. Hybrid sales spiked nearly 37% in 2024 and accounted for about 12% of all new vehicle sales, compared to just 8% of sales for EVs.
Tariffs could slow down EV sales even further
If all of the above were the only things ChargePoint had to worry about over the next year, it wouldn’t be great. But U.S. President Donald Trump’s recent enactment of significant tariffs on trading partners will likely cause major damage to the automotive market.
ChargePoint CEO Rick Wilmer said in the fourth-quarter earnings call that his company’s manufacturing is diversified, including locations in the U.S., and that “tariffs on raw materials are inconsequential relative to the total cost of manufacturing our products.”
While that’s good news at face value, it may not matter much. Automakers face significant headwinds thanks to 25% tariffs on imports from Mexico and Canada, two major automotive manufacturing locations. Plus, blanket tariffs on countries around the globe ensure automakers will feel the effects of rising costs no matter where they buy, sell, or make their vehicles.
Tariffs are expected to cause vehicle prices to increase by 13.5% on average, and that means expensive EVs will likely be even more costly. If the prices of other goods rise too, cash-strapped Americans likely won’t be quick to buy a new electric vehicle, which means less need for EV chargers.
All this leads me to believe that ChargePoint’s future could be rough over the next year. It’ll be difficult for the company’s charging station and software sales to increase if EV sales stagnate or only grow modestly. With so much uncertainty in the automotive market, it’s probably best to steer clear of ChargePoint stock for now.
Chris Neiger has positions in Rivian Automotive. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.