Analysis: TSLA GM F CHPT

Following news that Tesla (TSLA) is offering their supercharger network to General Motors (GM)  (and Ford (F) earlier in the week), Action Alerts PLUS holding ChargePoint Holdings  (CHPT) is selling off on the potential for loss of business. This is a curious move, however, given the strong guidance recently given by the company last week. We suspect ChargePoint knew this move was coming and still remains bullish on their future.

In our view, the U.S. still needs to build out an EV-charging network and the adoption by GM and Ford is helping solidify industry standards. We see this as a positive, much the way 4G and 5G standards being established allowed for the wireless industry to develop. We've seen this in other consumer technology markets as well. 

As we discussed recently when Ford and Tesla announced their usage agreement, Tesla's charging network spans some 12,000 fast charging stations vs. the need for 500,000 per McKinsey. With so many EV's coming on line in the coming years from a slew of manufacturers there seems to be plenty of business to go around for all.

We should note ChargePoint has faced challenges in the past in this relatively new and expanding space. We believe the future is ahead and ChargePoint will win out.

After you receive this Alert, we will make the following trade:

-- Add 2,400 shares of CHPT at or near $8.50. Following the trade, CHPT shares (totaling 16,135) will account for 3.75% of the portfolio.