What happened
ChargePoint Holdings (CHPT -3.10%) shares jumped as much as 4.4% Tuesday morning after it announced a new agreement with a large automaker. Those gains didn't hold, however, and shares of the electric-vehicle (EV) charging-network company reversed direction, moving down as much as 3.7%. As of 10:54 a.m. ET, the stock was still down 0.6%.
So what
ChargePoint is partnering with Lexus to help buyers of Lexus' fully electric RZ 450e crossover utilize ChargePoint's residential and public charging solutions. The deal is aimed to make it easier for consumers who are looking at buying the upcoming Lexus RZ 450e to get access to fast charging both at home and on the road. It's the second partnership ChargePoint has announced this year with major automakers.
Image source: ChargePoint Holdings.
Earlier this month, the company announced a new partnership with Mercedes-Benz that will result in over 400 charging hubs being added in North America. That will include more than 2,500 ChargePoint DC fast-charging ports in the U.S. and Canada.
Now what
Many consumers new to EVs are concerned about the ease, convenience, and certainty of battery charging. ChargePoint and Lexus will offer consumers who are considering buying the RZ 450e crossover the ability to add ChargePoint's Home Flex charging system. They'll also receive access to ChargePoint's leading network of Level 2 and DC fast chargers and roaming partner stations at the time of vehicle purchase.
ChargePoint says the Home Flex allows for charging up to nine times faster than by using a standard 110-volt wall outlet. It utilizes a 240-volt outlet and can provide up to 37 miles of battery range per hour.
ChargePoint shares are up nearly 40% over the past month. But the stock came under some pressure last week after peer charging-company Volta agreed to be acquired at a valuation 80% below where the stock was trading one year ago.
While news of another partnership to help spur ChargePoint's growth was good news for investors, the stock's valuation remains a problem, based on the recent deal in the sector. That helps explain why the stock reversed direction today.
