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CHPT Stock Alert: What to Know as ChargePoint Surges 10% on Monday

Shares of electric vehicle charging station company ChargePoint (NYSE:CHPT) look to finally have some juice as they jump 10% higher in morning trading.

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Shares of electric vehicle charging station company ChargePoint (NYSE:CHPT) look to finally have some juice as they jump 10% higher in morning trading.

Source: YuniqueB / Shutterstock.com

The Campbell, California-based company’s stock has been electrified by news that the House of Representatives has passed a $1 trillion bipartisan infrastructure bill that includes funding to build out the national infrastructure needed to facilitate the switch to electric vehicles.

In today’s pre-market session, CHPT stock soared more than 13% to just over $28 per share.

What Happened With CHPT Stock

Passage of President Joe Biden’s $1 trillion infrastructure bill moves the legislation a critical step closer to becoming law. And Biden himself has said that the bill will result in 500,000 electric vehicle charging stations being set up across the U.S. This will help further advance his goal of getting half of all drivers in America behind the wheel of an electric vehicle by 2030.

Specifically, the infrastructure bill provides $7.5 billion to build a network of EV charging stations. While that is a chunk of change, investors should note that it’s less than the $15 billion that Biden initially wanted. Regardless, it is a significant investment toward building out the EV infrastructure industry analysts say is sorely needed.

Biden’s comments, coupled with the House passage of the infrastructure bill, has investors grabbing CHPT stock. This is because ChargePoint is one of the biggest manufacturers of electric vehicle charging stations in the world. Currently, ChargePoint operates a global network of more than 100,000 electric vehicle charging stations spanning 14 countries. While the company, founded in 2007, remains unprofitable, its revenue this year has approached $150 million.

Why It Matters

The infrastructure bill’s allocation of $7.5 billion toward electric vehicle charging stations is great news for ChargePoint and its shareholders. Before today’s spike, CHPT stock has performed poorly, down 32% year to date, and 51% below its 52-week high of just under $50 a share. ChargePoint went public this past spring via a reverse merger executed through a special purpose acquisition company (SPAC).

Wall Street has been concerned that the rollout and adoption of electric vehicles was moving at a pace slower than the Biden administration wanted. Several U.S. automakers have said publicly that it is unlikely they will be able to meet the president’s stated goal of having half of all vehicles be fully electric by the end of the decade. This is especially true as a global shortage of semiconductors hobbles automotive manufacturing around the world.

However, with money from Washington earmarked for electric vehicle charging stations likely to flow to the states within a month after the bill is signed into law, the picture for ChargePoint and the broader electric vehicle market in the U.S. is suddenly much more positive. Accounting consultancy Deloitte has forecast that electric vehicle sales could reach 31.1 million units by 2030, up from 1.7 million sales last year (2020).

What’s Next for ChargePoint and CHPT Stock

ChargePoint shares got a big pop when the opening bell rang today. And the gains are likely to stick given that they’re based on real developments on the political front that will benefit the company financially. Going forward, CHPT stock is likely to keep climbing higher. The median price target on the shares prior to today’s move was $32.50, which implied a 32% increase over the next 12 months.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Energy & Critical Metals

‘Pragmatic approach’ needed for energy transition – Italgas chief

The chief executive of Italgas called for a “pragmatic approach to the energy transition involving policymakers, regulators and system operators”.
The…

The chief executive of Italgas today called for a “pragmatic approach to the energy transition involving policymakers, regulators and system operators”.

Paulo Gallo said that while all these actors agreed in principle on the main characteristics that the transition should have – such as fairness, cost-effectiveness, resilience, and an ability to support the development of a circular economy model – he said their recipes for success differ significantly.

Delivering one of the keynote speeches on the opening morning of Enlit Europe in Milan, Gallo said there was a need to evaluate sectoral policies in the light of the general framework.

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He said that the approach followed in European legislation is often focused on the local and immediate effect of selected policies, with little consideration for their systemic impact.

As an example, he cited the debate around the greening of gas. He said there was consensus that delivering increasingly cleaner gas was an imperative and that, as such, gas infrastructure is recognised as having a key role in the energy transition up to and beyond 2050.

And yet he said: “legislation is not always aligned with such vision.” He said individual pieces of legislation seemed to go in different directions and limit the potential contribution of these renewable gases.

“We should approach the problem from a holistic perspective. We have seen sometimes a simplistic approach.”

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Meanwhile, gas DSOs are alive to the potential of gas and are investing in both digitalisation and in connecting locally-produced renewable gas and green hydrogen to their grids.

He warned this disconnect between policymakers and industry meant there was a risk of under-exploiting the considerable potential of such gases and in turn the opportunity offered by the gas system to provide flexibility and security of supply to the European energy system would be lost.

“The gas system can be an incredible tool and an incredible lever for the energy transition.” Gallo, who is also Chairman of GD4S, said there needed to be a step forward on “true sector coupling”. “We have talked for 20 years in a theoretical way about sector coupling. We need to have a clear legislative framework and a viable solution that should not indulge in the self-interest of short-sightedness.”

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We can’t wait to see you in Milan

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The post ‘Pragmatic approach’ needed for energy transition – Italgas chief appeared first on Power Engineering International.

Author: Kelvin Ross

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Energy & Critical Metals

All Bets Are Off Whether the Lucid Stock Rally Can Continue

After prematurely calling a near-term top in Lucid Group (NASDAQ:LCID) stock on Nov. 11, I’ll admit so far, I’ve made the wrong call with Lucid.
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After prematurely calling a near-term top in Lucid Group (NASDAQ:LCID) stock on Nov. 11, I’ll admit so far, I’ve made the wrong call with Lucid.

Source: ggTravelDiary / Shutterstock.com

The electric vehicle maker’s turbocharged surge in price (kicked off by it making its first customer deliveries) has carried on.

Renewed hype for EV stocks, and growing optimism that this upstart will one day beat out established rival Tesla (NASDAQ:TSLA), has pushed Lucid higher. Market-wide uncertainty is knocking it back as of this writing. But it’s up for debate whether it can carry on with its incredible run.

On one hand, investor confidence in its “Tesla killer” abilities could continue to grow. In turn, shares could re-hit the highs last hit back when the deal that took it public was first announced. Or make their way to new highs.

On the other hand, the latest wave of EV mania may be fading. More analysts are pointing to EV offerings from the incumbent automakers, plus Apple’s (NASDAQ:AAPL) EV plans, as to where you should place your bets. On top of this, overarching uncertainties could still seriously weigh on LCID stock. Put it all together, and Lucid may be at risk of soon giving back a large chunk of its recent gains.

If you believe bullish sentiment will carry on in the short term, you may believe my concerns are overblown. Nevertheless, keep them in mind, as investors may take their foot off the accelerator sooner than you think.

LCID Stock and its Runaway Run-Up in Price

Even for an early-stage EV stock, Lucid’s surge in price has been staggering. In the past month, another aspiring Tesla killer, Fisker (NYSE:FSR), is up around 37%. Rivian (NASDAQ:RIVN), which wants to take on not just Tesla, but mass market automakers as well, is also up around 52% since it went public at $78 per share on Nov. 10.

During the same time frame, LCID stock is up nearly 50%. Sentiment is definitely with EV names like LCID stock.

Better yet (at least for investors already long Lucid), this mentality may carry on in the weeks/months ahead. Hitting new milestones could do the trick. So too, could updates on reservation numbers and production targets.

Then again, we could see far fewer big developments out of the company in the next few months. That could lead to a snap-back in sentiment, and a move back to the $30s or $40s per share.

There’s Still Plenty in Play to Knock it Back Down

Fears of yet another Covid-19 variant are putting pressure on stocks across the board, including LCID stock. But while this latest bit of uncertainty could prove to be short-lived, this isn’t the only thing that could stop this high-flier in its tracks.

There’s still plenty in play specific to the company that could cause Lucid to experience a further dive in price. First, there’s the possibility of no news being bad news. In other words, if over the next few months, there’s little in terms of game-changing news out of the company, more investors could opt to take profit, causing a further reversal in its latest run-up.

Second, sentiment could snap back from the bullishness seen lately, back to the on the fence view the market took on shares throughout mid-2021. What could fuel this? The release of more sell-side commentary that states there are much better EV plays out there from a risk/return standpoint. For instance, like Morgan Stanley analyst Adam Jonas’ latest take on Lucid gave shares the equivalent to a “sell” rating.

Jonas believes not just Tesla, but incumbent automaker General Motors (NYSE:GM), along with auto parts maker Aptiv (NYSE:APTV), are better opportunities. In separate commentary, Jonas has also discussed how Apple’s plans to develop a self-driving EV is bad news for automotive names across the board. If other analysts follow suit, it could drive a further retreat out of its shares.

The Verdict on Lucid Stock

Calling a near-term top in a particular stock is by-and-large a fool’s errand. Your bearish call could prove true in time. But in the interim, shares could still shoot up, thanks to the market’s exuberance lasting longer than expected.

That could still be the case here with Lucid. Or will it? More positive news could help reverse its latest pullback, enabling it to zoom past its past high water mark of nearly $65. However, a lack of news, or the release of further bearish commentary, may keep shares moving in reverse.

So, what’s the best move with LCID stock today? Wait for more indication which direction the market will send this EV play from here.

On the date of publication, Thomas Niel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.

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Energy & Critical Metals

Lucid Stock Could Actually Benefit from the Omicron Variant

All things considered, the loss that electric vehicle manufacturer Lucid (NASDAQ:LCID) stock incurred on Black Friday wasn’t too terrible.
Source: Around…

All things considered, the loss that electric vehicle manufacturer Lucid (NASDAQ:LCID) stock incurred on Black Friday wasn’t too terrible.

Source: Around the World Photos / Shutterstock.com

As you know, the global equity markets provided their own discount, with several top names shedding serious red ink. But the usual hesitation that accompanies such widespread volatility might not affect LCID stock over the long run.

Don’t get me wrong — Lucid isn’t running on some magic fuel. After soaring over 91% in the trailing month and 160% over the trailing half-year period, LCID stock might be due for a correction.

But should shares trip up, it might have less to do with the omicron variant of the novel coronavirus and more to do with general profit-taking motivations.

To be sure, the latest drama of the Covid-19 pandemic is not something to be ignored. As the Washington Post reported, the Dow Jones tumbled more than 900 points on the day that typically marks the start of the winter holiday shopping season.

Among analysts, fears have heightened that the new strain of the SARS-CoV-2 virus could derail the global economy.

On the surface, that wouldn’t be too hot for LCID stock nor any other automotive manufacturer, electric or otherwise.

According to the U.S. Bureau of Transportation Statistics, between February and April of 2020, vehicle miles traveled hemorrhaged a staggering 42%. Even at the latest read of August 2021, the metric is down 6% from its pre-pandemic peak.

Unless you’re buying a vehicle purely for fun or for showboating, making a new purchase against potentially another low-driving-miles environment isn’t sensible.

Sure, the underlying premium EVs of LCID stock cater to the rich, but rich people usually don’t become that way by committing silly money mistakes.

Still, there’s a chance that omicron could be good for Lucid.

LCID Stock Is Built for the Pandemic

When the Covid-19 pandemic first upturned society, all of us learned quite a bit about the little mundane details we took for granted.

As far as combustion cars were concerned, I personally learned that they can be an incredible pain in the hind end when it comes to maintenance.

Like a human being, you need to keep the juices flowing in a regular car for it to operate properly. If it sits around for too long, components start to corrode or shed capacity in a surprisingly rapid manner.

For instance, if you leave a combustion car sitting for a month or two, incremental parasitic loss could drain your battery completely.

That’s why some car experts caution that a low-mileage vehicle might not always be the most reliable, especially if it was used intermittently. In that case, a higher-mileage vehicle was frequently used but well taken care of might be the better option.

However, with EVs, you just don’t have this issue, at least not to the same magnitude. An EV can sit for months without charging, which will be beneficial if we enter a lockdown to mitigate the omicron variant.

Other nations are taking a proactive stance, locking down their borders.

We still don’t know how bad this omicron variant is. However, if our worst fears are realized, the U.S. government could potentially take some drastic measures. If so, that would be a cynical catalyst for LCID stock.

Additionally, EVs feature far fewer moving parts than combustion cars. Ordinarily, this makes electric transportation more reliable than its combustion-based counterpart. But in the new normal, this advantage also makes EVs much more livable.

Drivers won’t have to deal with as many maintenance items in EVs as with combustion cars, further bolstering the case for LCID stock.

A Word of Caution

Although a return to lockdowns or strong mitigation measures might help LCID stock, investors shouldn’t bank on it.

True, the omicron variant presents serious concerns for the international community. Yet as the AP noted, “Some previous variants, like the beta variant, initially concerned scientists but did not spread very far.”

That’s not to say you should ignore this strain. Obviously, it was enough to spook the markets so there might be something to this possible threat.

Nevertheless, LCID stock could potentially be sitting on a best-of-both-worlds scenario. If the pandemic worsens, EVs have proven to be the superior urban platform. But if the omicron variant turns out to be a false alarm, Lucid could resume its compelling business narrative.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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