What happened
Someone obviously plugged in the stock that is ChargePoint Holdings (CHPT -3.73%) on Monday, because it closed the day nearly 10% higher. Shares of the operator of an electric vehicle (EV) charging network benefited from an award from a notable U.S. consulting company.
So what
That consultancy, Frost & Sullivan, has named ChargePoint the winner of its Best Practices Market Leadership award in Europe's EV charging market.
Image source: Getty Images.
Frost & Sullivan was impressed that ChargePoint has carved out the highest market share on that continent, out of the more than 18 charging companies it surveyed.
ChargePoint said in a press release touting its award that Frost & Sullivan believed it "offers a robust portfolio of hardware, software, and support services catering to commercial, fleet, and residential EV customers."
The company is indisputably a major player in these relatively early days of EV charging networks. It has over 163,000 charging points that are operational; of these, 45,000 are in Europe, an important market for the company.
Now what
While admirable, winning the Frost & Sullivan award slightly obscures one important issue with ChargePoint. The company continues to lose considerable amounts of money, with a net loss of over $69 million in its most recently reported quarter (although, to be fair, it did raise its full-year 2021 revenue guidance).
That said, both in operational and fundamental terms, the company continues to grow robustly in its clear ambition to achieve scale. Believers in the future of EVs, specifically the charging segment, should probably keep the faith with this stock.
