New Data from ChargePoint Shows Pressure for More Charging Infrastructure Continues to Build

Rhea-AI Summary

ChargePoint's global network dispensed over 1 TWh of energy in 2023, a 70% increase year-over-year, reflecting the growing demand for EV charging. The company saw a 53% increase in annual charging sessions, with a 49% year-over-year increase in active drivers. ChargePoint's network has generated over 8 billion electric miles, avoiding over 1.6 million metric tons of greenhouse gas emissions. The PR highlights the need for more charging infrastructure to meet the rising demand for EV charging.

Insights

Market Research Analyst

The data from ChargePoint highlights a significant trend in the electric vehicle (EV) sector, indicating a substantial increase in EV charging demand. This is evidenced by the 53% increase in annual charging sessions and the 70% increase in energy dispensed. The rapid growth in EV sales, as reported, is a catalyst for the expansion of charging infrastructure, which is essential for sustaining the EV market's growth. The fact that charger utilization is outpacing port growth suggests that existing infrastructure is being used more intensively, which can serve as a leading indicator of market demand.

From a market perspective, the increase in utilization at fueling & convenience locations, workplace charging stations and within corporate fleets and multifamily commercial properties reflects broader adoption trends in the EV market. This could signal to investors the potential for growth in sectors tied to EV infrastructure, such as utility companies, charging technology manufacturers and real estate developers. The reported environmental impact, with over 1.6 million metric tons of greenhouse gas emissions avoided, also underscores the societal shift towards sustainability, which can influence consumer behavior and regulatory policies, further impacting the EV market and related industries.

Financial Analyst

The financial implications of ChargePoint's reported data are multifaceted. The increase in charging sessions and energy dispensed suggests higher revenue from charging services, which could positively affect ChargePoint's financial performance. However, the need for rapid scaling of infrastructure to keep up with demand presents both a challenge and an opportunity for capital investment. Investors should consider the balance between the costs of expanding infrastructure and the potential revenue growth from increased utilization.

Additionally, the disparity between the growth in charging sessions and active port growth indicates that ChargePoint may need to accelerate its capital expenditures to expand its network. This could impact short-term profitability but may be necessary for long-term market leadership. The report of over one million quarterly active drivers also suggests a growing customer base, which could lead to increased network effects and brand loyalty, potentially enhancing the company's competitive moat.

Sustainability Analyst

ChargePoint's network performance has significant implications for sustainability efforts within the transportation sector. The reported avoidance of 1.6 million metric tons of greenhouse gas emissions through the use of ChargePoint's network aligns with global efforts to reduce carbon emissions and combat climate change. This data could influence investor sentiment towards companies with strong environmental, social and governance (ESG) profiles.

Investors increasingly factor in sustainability metrics when evaluating companies and ChargePoint's contribution to reducing emissions could enhance its ESG standing. This may attract investment from funds focused on sustainable and responsible investing. Moreover, the growing demand for EV infrastructure could stimulate further innovation in renewable energy sources to power these charging stations, potentially spurring growth in the renewable energy sector as well.

ChargePoint's Global Network Exceeds One Terawatt Hour in Energy Dispensed in 2023; Utilization Drastically Outpaced Growth in New Ports Worldwide

CAMPBELL, Calif.--(BUSINESS WIRE)-- ChargePoint (NYSE: CHPT), a leading provider of networked charging solutions for electric vehicles (EVs), today released new data that illustrates the growing demand for EV charging as passenger and commercial fleet EV sales continue to increase at a rapid rate, with EV sales hitting record high numbers in the U.S. last year. Across the ChargePoint network globally, there was a 53% increase in annual charging sessions, dispensing over 1 TWh of energy in 2023, a 70% increase year-over-year.

“Increased utilization pressure across all commercial segments demonstrates that EV charging has gone from a perk to necessity for businesses, their employees, and their customers,” said Rick Wilmer, CEO of ChargePoint. “With more EVs on the road, drivers are looking for reliable and accessible charging where it’s most convenient for them, whether that’s pulling off the side of the highway to charge and grab snacks, or plugging in for a few hours while they’re at work. It is clear that charging infrastructure must scale more rapidly alongside the consumer and commercial adoption of EVs.”

On the ChargePoint network, global utilization outpaced active port growth across all commercial sectors in 2023. BloombergNEF predicts EV sales could reach nearly 2 million vehicles in the U.S. in 2024, meaning charger utilization will continue to grow with a clear need for more infrastructure to meet EV drivers’ charging needs. In North America, fueling & convenience locations, typically high powered charging hubs along major highways, saw a 109% increase in charging sessions year-over-year, compared to approximately 47% year-over-year increase in active ports. As the return to office trend continues to grow, workplace charging stations saw approximately 64% increase in charging sessions year-over-year, compared to approximately 22% increase in active port growth. Additionally in workplace settings, the average number of active drivers per port increased 21%.

Other segments that saw notable session growth in North America in 2023 include corporate fleets, with charging sessions increasing approximately 83% from the prior year compared to approximately 54% increase in active port count; and multifamily commercial properties, which saw approximately 40% increase in charging session growth, compared to approximately 24% increase in active ports. Further, in the multifamily commercial property setting, the average number of active drivers per port increased approximately 53% in 2023.

In 2023, drivers spent more than 180 million hours charging across ChargePoint’s network of more than 274,000 active ports under management globally. Additionally, ChargePoint reported a 49% year-over-year worldwide increase in annual active drivers, and surpassed 1 million quarterly active drivers globally during the Company’s fiscal third quarter. The scale of the ChargePoint network continues to generate a positive environmental impact with ChargePoint estimating over eight billion electric miles driven to date, drivers have avoided over 1.6 million metric tons of greenhouse gas emissions.

ChargePoint defines “active ports” as the total number of charging ports on the ChargePoint network in North America and Europe with at least one charging session during the relevant period, excluding roaming ports. A “charging session” is defined as a charging session on an active port where energy is dispensed during the relevant period. An “active driver” is defined as a driver account using the ChargePoint network for a charging session in each relevant period, excluding roaming sessions. ”Energy dispensed” is defined as the energy dispensed, in kWh, through active ports on the ChargePoint network during the relevant period. Port growth does not represent the number of new installation growth year-over-year, but the number of ports with at least one session year-over-year.

About ChargePoint Holdings, Inc.

ChargePoint is creating a new fueling network to move people and goods on electricity. Since 2007, ChargePoint has been committed to making it easy for businesses and drivers to go electric with one of the largest EV charging networks and a comprehensive portfolio of charging solutions. The ChargePoint cloud subscription platform and software-defined charging hardware are designed to include options for every charging scenario from home and multifamily to workplace, parking, hospitality, retail and transport fleets of all types. Today, one ChargePoint account provides access to hundreds-of-thousands of places to charge in North America and Europe. For more information, visit the ChargePoint pressroom, the ChargePoint Investor Relations site, or contact the ChargePoint North American or European press offices or Investor Relations.

CHPT-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20240129597086/en/

ChargePoint

AJ Gosselin

Director, Corporate Communications

AJ.Gosselin@chargepoint.com

media@chargepoint.com

Patrick Hamer

Vice President, Capital Markets and Investor Relations

Patrick.Hamer@chargepoint.com

investors@chargepoint.com

Source: ChargePoint Holdings, Inc.

FAQ

How much energy did ChargePoint's global network dispense in 2023?

ChargePoint's global network dispensed over 1 TWh of energy in 2023, reflecting a 70% increase year-over-year.

What was the percentage increase in annual charging sessions for ChargePoint in 2023?

ChargePoint saw a 53% increase in annual charging sessions in 2023.

How many active drivers did ChargePoint have in 2023?

ChargePoint reported a 49% year-over-year increase in annual active drivers in 2023.

How many electric miles has ChargePoint's network generated to date?

ChargePoint's network has generated over 8 billion electric miles to date.

How much greenhouse gas emissions have drivers using ChargePoint's network avoided?

Drivers using ChargePoint's network have avoided over 1.6 million metric tons of greenhouse gas emissions.