(Bloomberg) -- ChargePoint Holdings Inc. fell after the electric vehicle charging company said it plans to cut 15% of its workforce and slashed earnings estimate for its next fiscal quarter.
Shares dropped as much as 23% as of 9:37 a.m. in New York Thursday, the biggest intraday drop since mid-November. Some analysts downgraded the stock citing an unclear path to revenue growth and EV recession. The company said the planned restructuring will affect mainly sales and marketing.
The move reflects a slowdown in EV adoption, with car manufacturers scaling back ambitious goals. Blink Charging Co. last month slashed its full-year revenue guidance and Tesla Inc. fired most of its supercharging team earlier in the year.
“While management notes green shoots are emerging suggesting a bottom, it’s hard to envision a near-term reacceleration in growth,” TD Cowen analysts including Gabriel Daoud said in a note Thursday. Daoud and Chris Pierce of Needham & Co. cut the price target for the stock to $2 from $3.
Chief Financial Officer Mansi Khetani said on an earnings call Wednesday that inventory balance is expected to remain high until the end of the year as the company is not selling already manufactured chargers fast enough.
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