What happened
Building on Tuesday's momentum, shares of ChargePoint Holdings (CHPT -0.37%) continued to power higher Wednesday. As of 12:34 p.m. ET, the electric vehicle charging stock was up 2.7%, retreating slightly from an earlier gain of 4.5%.
Although the company didn't report any news Wednesday that could have been a catalyst for that rise, it seems that investors are still showing their enthusiasm for an EV charging collaboration between two other companies -- BP and Hertz -- that was announced Tuesday, as well as good news for the sector that came out of Washington, D.C.
So what
Recognizing the growing interest in EVs, BP and Hertz announced a plan to expand EV-charging infrastructure for Hertz customers. According to Stephen Scherr, CEO of Hertz, the companies will partner to "create a national charging infrastructure for the Hertz EV fleet, thereby growing the number of charging options available to our customers and providing them with a premium electric experience and lower emission travel options."
In addition, the Department of Transportation stated Tuesday that the White House had approved the Electric Vehicle Infrastructure Deployment Plans of all 50 states, as well as Washington, D.C., and Puerto Rico. With the Biden administration's approval, which came ahead of schedule, all of the states now have access to the 2022 and 2023 funding to build chargers provided by Biden's Bipartisan Infrastructure Law.
Undoubtedly, investors are surmising that this will be a boon for ChargePoint, which is a leading provider of EV-charging solutions in the United States.
Now what
While shares of ChargePoint are down 46% from their 52-week high, the stock remains a risky investment. Although the company has achieved consistent revenue growth over the past three years, it has failed to prove that it can translate its EV-charging endeavors into profitability. As such, only growth investors who are comfortable with a higher degree of risk should consider picking up shares.
