ChargePoint Holding (CHPT 1.14%) stock is getting hit from all sides. Shares of the electric vehicle (EV) charging infrastructure company plunged 30.8% in February, according to data provided by S&P Global Market Intelligence, after two unfavorable developments sent panic waves among its investors -- a move by President Donald Trump and a noncompliance notice from the New York Stock Exchange (NYSE).
ChargePoint stock keeps losing charge
In early February, the Trump administration suspended a clean energy program launched by the previous administration that set aside billions of dollars in funding to the states to expand the nation's EV charging network. President Biden set an ambitious goal to build out 500,000 EV charging stations by 2030 and set aside $5 billion to achieve the goal. Although the Biden administration had already made several grants, Trump froze releasing any remaining funds under the program. That means nearly $3 billion worth of funding has now been halted.
Biden's massive clean energy program was a major growth driver for the EV charging industry and its stocks. Not surprisingly, ChargePoint stock took a big hit after Trump's order to suspend the program. ChargePoint has the largest EV charging network in the U.S.
NYSE: CHPT
Key Data Points
Meanwhile, with ChargePoint stock plunging and its price closing below $1 for 30 consecutive trading days, NYSE issued a notice to the company for noncompliance with listing rules later in February. Although it's a notice of deficiency and does not mean the stock will get delisted from NYSE, ChargePoint will have to "cure" the deficiency and ensure it remains listed.
While these two factors sent ChargePoint stock tumbling, investors were also seemingly dumping the stock in fear last month ahead of the company's earnings.
The only reason ChargePoint stock could rally
ChargePoint's fourth-quarter and full fiscal year 2025 numbers, which came out earlier this month, offered a flicker of hope. Although the company's revenue fell 12% year over year in the fourth quarter, it reported a gross margin of 28% versus 19% in the prior-year period and a 32% improvement in its net loss. ChargePoint also burned less cash in the quarter versus Q3.
However, ChargePoint is projecting revenue between $95 million and $105 million for the first quarter, which would mean a 2% to 12% drop year over year. So while it's good to see the company cutting down expenses and trying hard to reduce its cash burn, it can only do so much if its revenue falls too.
Meanwhile, ChargePoint will have to bump its stock price to ensure it trades above $1 for at least 30 consecutive days to avoid delisting. The only viable option appears to be a reverse stock split -- and there's nothing good to talk to about that.
