After you receive this alert, we will buy 1,135 ChargePoint (CHPT) shares at or near $12.25. Following the trade, the portfolio will own 10,000 CHPT shares, roughly 3.75% of the portfolio.
While the overall market is under pressure this morning, our shares of electric vehicle charging station company ChargePoint are under even more pressure following the news that EV company Electric Last Mile (ELMS) announced plans to file for bankruptcy after the board and the new leadership reviewed the company's products and commercialization plans. Electric's ELMS' first vehicle, the Urban Delivery, was anticipated to be the first Class 1 commercial electric vehicle in the U.S. market. Once again, we are seeing a broad brush hit the overall EV space, which we would argue is unfairly hitting CHPT shares, which are poised to benefit from the rollout of Biden Infrastructure spending dollars and other spending to address the growing EV charging pain-point. That buildout is a multi-year process that arguably makes CHPT something of a "port in a storm" stock, especially at current levels. The disconnect between that opportunity and the current share prices is leading us to round out our positions in CHPT shares.
While we are not involved with ELMS shares, this Chapter 7 filing follows recent "going concern" issues for Canoo (GOEV) , another EV company and in our view showcases the difference between a concept and a well-funded business with a competitive advantage. The automotive business is an incredibly complex one that spans manufacturing, distribution, and financing not to mention competitive pressures. Take Ford Motor (F) , which is in the midst of its transition toward becoming more of an EV company that a combustion engine one. While it isn't a short transition, and certainly not an overnight one, the company brings a history of manufacturing at scale, relationships with dealers and financing options that Canoo and Electric Last Mile don't have. What we are seeing with those two companies is the natural evolution of what boils down to a new product category, and odds are others will follow the same path before all is said and done.
That pain could be an opportunity for more establish companies like Ford, not only because it wipes competition off the board, but it may allow them to scoop up talented engineers, designers and other folks who could accelerate Ford and other companies' own EV agenda. The same goes for Apple (AAPL) and its Project Titan plans.
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)