ChargePoint CEO says 50% stock surge 'is the beginning of the momentum'

In this article CHPT ChargePoint Holdings CEO Rick Wilmer believes a surge in the electric vehicle charging company's stock Thursday is just "the beginning of the momentum," he told CNBC.

Shares of ChargePoint increased more than 50% during early trading after the company significantly beat Wall Street's second-quarter expectations for its 2027 fiscal year and guided toward continued improvements in its performance.

It's the most notable increase since it underwent a reverse stock split last year to raise its share price and maintain compliance with the New York Stock Exchange's minimum trading price requirement of $1 per share. "The growth is starting to accelerate," Wilmer told CNBC during an interview Thursday morning. "It'll be driven substantially by the new products and technology we're putting into the market."

ChargePoint, unlike some EV charging companies, does not actually own and operate its chargers. It provides hardware, software and services to customers, such as businesses, that want to offer chargers to their employees or customers. The company after markets closed Wednesday reported revenue of $116.1 million and a loss per share of 35 cents during the quarter.

That compared with analyst expectations of $105.2 million in revenue and a loss of 85 cents, according to average estimates compiled by LSEG. Its performance was assisted by a one-time tariff refund of approximately $4.2 million in the quarter, but the company said its normalized gross margin would have still set a new record without the benefit.

"We've now had our fourth consecutive quarter of year-over-year growth, and this quarter we just reported yesterday was obviously another good growth quarter," Wilmer said. "And now [we're] expecting that to accelerate, especially as we move into next year."

As part of its growth plan, the company has been introducing faster high-performance chargers, known as "Level 3," in Europe, as well as next-generation products for the U.S., including Level 2 and Level 3 chargers. The company also is using artificial intelligence to improve charging times for its customers, reduce how long it takes to develop software and improve efficiency across its business, Wilmer said.

Wilmer's optimism comes despite a slowdown in all-electric vehicle sales during the past year, following the elimination of federal support for the industry in the U.S., including the end of an up to $7,500 consumer benefit for purchasing an EV. "I think, altogether, the down cycle, or the doom and gloom, has been a bit overstated. I think there's a lot more positivity at the ground level," Wilmer said.

"I just think in the end, better products can win." U.S. automakers are continuing to sell EVs, and demand in the used vehicle market is strong amid high gas prices, but the move to non-gas-powered vehicles has been significantly lower than many companies and analysts previously expected.

ChargePoint is toward the end of a three-year business plan spearheaded by Wilmer that focused on reducing cash burn and profits, including cutting net losses from $125.3 million three years ago to $35.6 million during its most recent quarter.

The company has not disclosed when it plans to be profitable, but Wilmer said the company is on its way to achieve a profit on an earnings before interest, taxes, depreciation and amortization basis. "We're approaching that quickly, and we want to get there ASAP," he said Thursday.

ChargePoint's third-quarter guidance for its 2027 fiscal year included revenue between $105 million and $115 million, which would be a mid-point increase of roughly 4% year-over-year.