Shares of electric vehicle (EV) charging company ChargePoint (NYSE: CHPT) jumped as much as 12% today after the announcement of an agreement with General Motors to accelerate the installation of fast EV charging stations across the U.S.
ChargePoint shares have languished this year, but were jumping on the news today. After rising by more than 12%, however, shares lost much of that gain, higher by just 3% as of 3:20 p.m. ET.
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Expanding EV charging with GM Energy
Over the next year, the companies plan to install hundreds of new ultra-fast chargers in strategic locations around the country. Using the GM Energy brand, the installations will utilize ChargePoint's Omni Port system, enabling vehicles with both CCS or NACS charging ports access. NACS is the North American Charging Standard that Tesla has rolled out with its Supercharger network. These stations won't require EV owners to use an adapter or select a specific charger parking space based on connector type.
ChargePoint CEO Rick Wilmer stated: "Our collaboration with GM represents a significant investment in the infrastructure to enable fast and easy charging for all. Together, ChargePoint and GM will deliver a seamless fast charging experience via reliable charging hardware managed by our industry-leading software platform."
ChargePoint's platform of ultra-fast chargers is capable of charging speeds up to 500kW. General Motors wants customers and potential EV buyers to have "more reliable, accessible and convenient charging experiences," according to Wade Sheffer, GM Energy vice president.
Both GM and ChargePoint are counting on expanding EV sales to lead to more profitable business results. This arrangement is one more step toward that goal. But it seems like investors were overreacting to the significance of this development. That helps explain why the stock lost its double-digit gain in late trading.
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Howard Smith has positions in ChargePoint and Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
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