ChargePoint Slides Amid EV Sector Downturn
ChargePoint Holdings Inc. (CHPT) shares experienced a significant drop on Monday, falling by 6.3% to $1.28. This downturn mirrors the broader EV sector’s recent struggles.
Tesla’s Price Cuts and Rivian’s Layoffs
Tesla’s decision to slash vehicle prices in key markets, combined with Rivian Automotive Inc.’s workforce reductions due to industry slowdown, has weighed heavily on the sector. Rivian’s recent workforce cut mainly targeted support and back-office roles, while Tesla itself recently laid off around 10% of its workforce.
Investing in ChargePoint
To participate in the ChargePoint market, investors can purchase shares through a brokerage account. Many brokerages offer the option to buy fractional shares, allowing investors to own portions of stock without purchasing full shares. For instance, with ChargePoint trading at $1.26, $100 would purchase 79.37 shares.
Shorting ChargePoint Shares
To bet against ChargePoint, investors need access to an options trading platform or a broker who allows short selling. This involves borrowing shares to sell, which can be a more complex process. Alternatively, investors can trade options by buying a put option or selling a call option at a strike price above the current trading price to profit from a decline in share price.
