The charging infrastructure market is exponentially expanding as electric vehicle (EV) adoption is accelerating worldwide. While China is currently leading in EV charging infrastructure, with more than 3.2 million public charge points, Europe is expanding rapidly, with over 900,000 public charge points, with countries like the Netherlands, France and Germany at the forefront. In contrast, the United States is working to catch up, with a little more than 206,000 publicly available charging ports and approximately 1,000 new public chargers being added each week.
The charging infrastructure market is poised for significant growth in the United States and globally, driven by the quick transition to EVs. New investments from the Bipartisan Infrastructure Law will add more than 11,500 EV charging ports in the United States. It aims to build 500,000 publicly available EV chargers by 2030.
Globally, Europe and China are leading the way with strong government mandates and incentives promoting EV adoption. The European Union’s Fit for 55 package and China’s aggressive push for electrification have led to the rapid deployment of high-speed chargers.
In such a scenario, investors are now looking to invest in charging infrastructure stocks that have growth potential and offer an attractive investment opportunity. Two major American charging companies, EVgo EVGO and ChargePoint CHPT, have reported their quarterly results this week. Which of these is the better pick? Let us dig deep to find out.
EVgo
The stock has been capitalizing on federal National Electric Vehicle Infrastructure Program (NEVI), securing deals that will aid in its network expansion. Its fourth-quarter 2024 revenues grew 35% on a year-over-year basis, driven by increased charging sessions. EVGO recorded a network throughput of 84 gigawatt-hours in the reported quarter compared with 50-gigawatt hours in the year-ago period. The total stalls in operation were 4,080 compared with 2,980 at the end of the prior-year quarter. EVgo added more than 133,000 accounts in the quarter.
EVGO and Delta Electronics have signed a joint development agreement to co-develop the next generation of chargers to improve customer experience, enhance charger reliability and drive cost efficiency via advanced firmware and hardware design. This is expected to significantly boost EVgo’s prospects.
EVgo’s first pilot site with the native NACS connectors became operational in February 2025 and additional locations are anticipated to be added throughout 2025. This will significantly expand the company’s footprint. The company is also expected to benefit from the rideshare electrification process of companies like Uber and Lyft.
However, despite its growth prospects, EVGO is currently unprofitable with a negative adjusted EBITDA and is burning cash. It remains vulnerable to any shifts in federal policy due to its association with NEVI, which is a key driver of the company’s expansion. Furthermore, the company is struggling with slower-than-expected EV adoption and macroeconomic uncertainties, including the latest 25% tariffs imposed on Mexico and Canada that are expected to increase vehicle prices and, thus, impact demand for charging infrastructure.
Click here to check the details of EVgo’s fourth-quarter 2024 results.
ChargePoint
This stock has been making significant improvements in cost-cutting, reducing its non-GAAP operating expenses by 42% in the reported quarter, from its peak in the second quarter of fiscal 2024. Its subscription revenues grew 14% on a year-over-year basis, reaching $38 million in the fourth quarter. With 342,000 managed charging ports, including 120,000 in Europe, the company is benefiting from increasing EV adoption. Unlike its competitors, CHPT is not reliant on NEVI funding, insulating it from federal policy changes.
CHPT has strong growth prospects. Its recent collaboration with General Motors to accelerate EV charging infrastructure growth in North America is noteworthy. The partnership aims to install hundreds of ultra-fast charging ports at strategic locations across the United States in 2025. In collaboration with the Colorado Energy Office, ChargePoint has built six EV fast-charging corridors along Colorado highways, doubling the coverage of DC fast charging across the state.
Furthermore, the company has also introduced innovative solutions to combat EV charger vandalism, including the industry’s first cut-resistant charger cable and ChargePoint Protect, an alarm system to improve charging station security. These are expected to strengthen CHPT’s market hold and boost its share price performance.
However, CHPT is also struggling with slower-than-expected EV adoption and macroeconomic uncertainties at present, including the latest 25% tariffs imposed by President Donald Trump on Mexico and Canada that will increase vehicle prices and hence hamper the demand for charging infrastructure. Fourth-quarter 2025 networked charging systems revenues fell 28.9% on a year-over-year basis to $52.6 million.
Click here to check the details of ChargePoint’s fourth-quarter 2025 results.
Price Performance & Stock Valuation
In the trailing 12-month period, EVGO shares have lost 9.8%, while CHPT shares have plunged 64.2%. In the same time frame, the Zacks Auto, Tires and Trucks sector has declined 6.1%, and the S&P 500 index has returned 12.4%.
One Year Performance
Zacks Investment Research
Image Source: Zacks Investment Research
Both EVGO and CHPT shares are not so cheap, as suggested by their Value Score of F. In terms of the forward 12-month price/sales, EVGO is currently trading at 1.94x and CHPT is currently trading at 0.64x.
Price/Sales Ratio (F12M)
Zacks Investment Research
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What Do Zacks Estimates for EVGO & CHPT Say?
The Zacks Consensus Estimate for EVGO’s 2025 loss is currently pegged at 55 cents per share, which has widened by 25% over the past 30 days. EVGO beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 11%.
EVgo Inc. Price and Consensus
EVgo Inc. Price and Consensus
EVgo Inc. price-consensus-chart | EVgo Inc. Quote
On the other hand, the Zacks Consensus Estimate for CHPT’s fiscal 2026 loss is currently pegged at 19 cents per share, unchanged over the past 30 days. CHPT beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average surprise being 1.07%.
ChargePoint Holdings, Inc. Price and Consensus
ChargePoint Holdings, Inc. Price and Consensus
ChargePoint Holdings, Inc. price-consensus-chart | ChargePoint Holdings, Inc. Quote
Which of These Stocks Worth Buying Now?
Although EVgo is expanding its network via the NEVI funding, it remains unprofitable and highly dependent on federal policies, making it vulnerable to policy shifts. Given its risky growth prospects, its high valuation is not justified. EVGO currently carries a Zacks Rank #3 (Hold), implying that it may be wise for investors to wait for a more favorable entry point to accumulate the stock.
In comparison, CHPT is financially stronger, cutting its costs, growing subscription revenues and expanding its global footprint. Its robust partnerships, innovative anti-vandalism solutions and broad market reach position it for long-term growth. Given the company’s robust growth prospects, its premium valuation is justified. With lesser reliance on government funding and a stronger financial performance, CHPT presents a more stable and promising investment opportunity. ChargerPoint currently carries a Zacks Rank #2 (Buy), implying that it may be wise for investors to start accumulating the stock now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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