ChargePoint Holdings, Inc. CHPT shares are experiencing a downturn on Wednesday, dropping more than 20% in the past week alone. Let’s delve into the cause of this tumble.
The Strategic Reorganization:
Last Wednesday, ChargePoint unveiled a strategic restructuring initiative aimed at bolstering its financial standing and positioning itself for sustained expansion. This endeavor involved trimming its global workforce by approximately 12%.
The company anticipates that these measures will lead to annual operational expense savings of roughly $33 million and around $14 million in restructuring costs, encompassing severance and associated outlays.
Additionally, ChargePoint reaffirmed its financial situation, disclosing holdings of approximately $397 million in cash alongside access to an extra $150 million through an untapped revolving credit facility. The company also reiterated its target of attaining positive non-GAAP adjusted EBITDA in the fourth quarter of 2024.
Following this announcement, ChargePoint’s shares plummeted by more than 20%. Per statistics from Benzinga Pro, the stock is presently trading below its 50-day moving average of $2.37, with 22.92% of available shares being shorted.
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CHPT Price Movement: According to Benzinga Pro, ChargePoint Holdings shares are down by 4.72% at $1.715 at the time of this report.
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