What happened
Shares of electric vehicle (EV) charging network company ChargePoint Holdings (CHPT +0.55%) jumped Thursday after President Joe Biden presented the details of his new jobs and infrastructure plan. As of 3 p.m. EDT, ChargePoint shares were up 8%, having pared gains of 15% from earlier in the session.
So what
Several items detailed in the Biden package could help drive growth in charging companies like ChargePoint. The $2 trillion package includes about $620 billion allocated to transportation infrastructure. More than a quarter of that, or about $175 billion, is dedicated to the EV sector. This includes installing 500,000 charging stations and electrifying bus fleets and government vehicles. As a leading charging system infrastructure company in North America, investors believe ChargePoint stands to benefit.
Image source: Getty Images.
Now what
ChargePoint says it has more than 70% of the North American Level 2 charging network, which uses 240 volt power. While these meet the needs of many EV users, ChargePoint also has more than 2,000 publicly available fast charging stations. The company just announced its initiative with NATSO, the trade association representing the travel plaza and truck stop industry, will utilize $1 billion in public and private funds to expand charging at more than 4,000 travel plazas and fuel stops in the next decade.
ChargePoint president and CEO Pasquale Romano said in a statement the company supports the Biden initiative, noting that the plan includes rebates that will help workplaces and multifamily homes accelerate the building of a charging infrastructure network. He added, "these measures will create jobs and accelerate the transition to EVs through the buildout of EV charging infrastructure nationwide." Investors are showing today that they believe ChargePoint will be a beneficiary, too.
