EV Power Pulse Issue #10

Current EVents

EV Industry Updates

ChargePoint Stock Plunges Once Again as New Leadership Arrives

ChargePoint Holdings Inc. has experienced a challenging quarter characterized by underwhelming financial performance and significant leadership changes. The company recently reported a substantial dip in quarterly revenue, ranging between $108M and $113M—well below its earlier guidance of $150M.

The company's shares, already on a downward trajectory, experienced a sharp plunge of up to 34% in mid-November. This adds to an already challenging year for ChargePoint, with its market capitalization dramatically reduced to under $1B, a steep decline from its peak of $11.2B in June 2021. CHPT shares were trading for as low as $1.86 on Tuesday, November 28. 

The EV charging space is intensely competitive, particularly with industry behemoth Tesla setting high standards of service and reliability. The challenges confronting market players like ChargePoint are increasingly apparent. Tesla's expansive and dependable charging infrastructure, which has prompted major automakers to adopt its connector, poses a significant hurdle for other competitors in the field.

ChargePoint's leadership shake-up a few weeks ago added another layer of surprise for those following the industry. CEO Pasquale Romano, who had held the top position since 2011, and CFO Rex Jackson were replaced by Rick Wilmer and Mansi Khetani, respectively. This change in leadership highlights the broader challenges faced by EV-related companies in a market increasingly characterized by investor caution.

Wilmer plans to adjust inventory and operating expenses, but he faces considerable headwinds in the journey ahead. ChargePoint’s charging stations, like others in the industry, struggle with reliability concerns. This problem is further exacerbated by the slower adoption of non-Tesla EVs. 

As the EV charging landscape continues to evolve, the future of ChargePoint hangs in the balance. The critical question is whether Wilmer's primary objective is to realign the company's trajectory or to stabilize it sufficiently for a possible acquisition. The theme of M&A has been a recurring focus in this newsletter, underscoring the potential for industry consolidation and expansion through strategic acquisitions.

Despite its challenges, ChargePoint has valuable assets. Their chargers are known for their industry-leading speed when operational, and their partnerships with major players like Mercedes-Benz are notable strengths. However, considering the company's significant decline in value over the past year, including recent weeks, it seems plausible that Wilmer's primary objective may be to fortify the company's position in preparation for a strategic sale.

–Steve

Capitol Counsel’s skilled bipartisan team specializes in helping clients secure competitive funding for infrastructure projects by effectively leveraging the Bipartisan Infrastructure Law and the Inflation Reduction Act. Their extensive network spans various agencies, Congress, and the White House.

Power and Policy

PSC Approves “Major Changes” to NY’s EV Make-Ready Program

The New York State Public Service Commission has greenlit major enhancements to the state's EV "make-ready" program. These strategic changes aim to accelerate the shift to zero-emission electric vehicles by addressing concerns like range anxiety. With such a significant investment, New York looks to ensure convenient and reliable access to EV charging across the state. 

The increase in the overall budget for the ratepayer-funded EV Make-Ready Program is certainly eye-catching, now standing at $1.24B—a roughly $539M increase from the previous $701M. Crucially, $372M of that budget is specifically allocated for programs in disadvantaged communities, which is an 81% increase from the previous amount. 

Additionally, the expansion plan includes a surge in the target of charging stations from 1,500 to 6,302. This goal is paired with higher incentives to expedite the broader build-out of EV charging infrastructure. Notably, they’ll be investing in a micro-mobility make-ready initiative aimed at offering charging options for e-bikes, e-scooters, and other electric transportation options. 

Commercial EV-charging customers will also benefit from new rates and programs, including substantial rebates or subsidies. Governor Kathy Hochul expressed optimism, noting that these enhancements will encourage more New Yorkers to adopt electric vehicles, contributing to the state's clean and sustainable transportation goals. 

We will see how that plays out, as EV adoption has slowed in the US. In 2021, 86% of US car buyers were considering an EV, but that number fell to 67% in 2023. Range anxiety and high costs are key culprits, so New York’s plans could be what the EV market needs in the state. 

–Rob

EVs Overseas

How The Netherlands Built Europe’s Most Robust EV Infrastructure

The Netherlands is achieving a remarkable feat in the deployment of EV infrastructure, establishing a standard within the European Union that is unparalleled. With 112,000 charging points, the Dutch infrastructure boasts nearly 30% of all EU EV chargers, surpassing the likes of Germany, the UK, and Romania. How are they so quickly scaling their EV infrastructure?

At the heart of this achievement is the Dutch government's strategic use of incentives and grants, fueled by a dedication to enhancing air quality improvement and reducing greenhouse gas emissions. Dutch drivers enjoy significant financial assistance, including incentives up to €4,000 for new EV purchases, along with appealing propositions for businesses integrating electric vehicles into their operations. 

Highlighting a cooperative strategy, the Netherlands has launched initiatives such as the National Charging Infrastructure Knowledge Platform Foundation' (NKL), fostering collaboration in the development of EV infrastructure. This progressive initiative is dedicated to reducing the costs associated with establishing public charging stations, thereby enhancing accessibility across the nation. Moreover, residents have the opportunity to request the installation of complimentary public EV chargers in their local areas. 

The US government, through the NEVI program under the Joint Office of Energy and Transportation, has initiated similar efforts to expand public charging infrastructure. From 2014 to 2022, the number of public chargers in the US increased from 25,602 to 143,711. While this growth is notable, it’s relatively modest when considering the scale. 

In contrast, the Netherlands, a country only slightly larger than Maryland, saw its public chargers surge from approximately 12,000 to around 112,000 in the same timeframe. For Dutch EV drivers, the widespread availability of charging ports is a crucial factor driving their high rates of EV adoption. 

A key factor in the Netherlands' success with electric vehicle adoption is synergy between cultural value and policy. The nation’s zero-emission goal for all new passenger vehicles by 2030 aligns seamlessly with its citizens’ deep-rooted commitment to environmental preservation. In the Netherlands, environmentalism is a widely embraced cultural norm, leading to greater public support for sustainability initiatives.

The Dutch approach to EV infrastructure deployment is more than just building new infrastructure; it embodies a harmonious blend of government commitment and cultural congruence. Although the U.S. is advancing significantly with substantial public and private investments, emulating the Netherlands’ comprehensive strategy poses a considerable challenge due to the vast geographical scale of the U.S. However, the Dutch model offers valuable lessons and strategies that can be adapted by America's business leaders and policy-makers.

–Steve and Rob

How to further connect with us

If you’d like to stay plugged into the latest EV news, you’re in the right place.

To be a part of the conversation and stay up to date with ChargeCorps, you can follow us on LinkedIn and Twitter.

If you want to get in touch with us to learn more about ChargeCorps, reach out here.

Until next time, stay charged!
- Steve and Rob