ChargePoint Plunges 19%—Is This the Final Warning Shot for a Struggling EV Giant?

Summary
• ChargePoint executed a 1-for-20 reverse stock split at market open, lifting its share price above the NYSE's $1 threshold.
• Intraday price cratered to $9.00, a 19% drop from its post-split open, amid investor skepticism over the company's fundamentals.
• Technicals show a bearish breakdown, with RSI at 32.74 and MACD signaling deepening momentum decay.

ChargePoint (CHPT) has become the poster child of corporate desperation, with its 19% intraday collapse following a reverse split that masks deeper financial rot. As the stock oscillates between $9.00 and $11.09, the market is sending a clear message: structural issues outweigh cosmetic fixes.

Reverse Split Triggers Investor Panic
ChargePoint's 19% intraday plunge stems from a fundamental disconnect between its reverse stock split and underlying business performance. The 1-for-20 consolidation was a procedural fix to avoid delisting, not a value creation play. Shareholders reacted with skepticism as the company's 52-week range (9-40) and -20.2x P/E ratio underscore a business hemorrhaging cash. The reverse split—executed at 12:01 a.m. ET—merely delayed the inevitable, with technical indicators confirming the market's bearish consensus.

EV Sector Rises as ChargePoint Tumbles
Bearish Playbook: Navigating CHPT's Freefall with Options
• 200-day MA: 0.886 (well below price)
• RSI: 32.74 (oversold territory)
• MACD: -0.023 (negative momentum)
• Bollinger Bands: Price at 9.888, far below 20-day MA of 0.680

Technical indicators paint a grim picture of structural weakness. The stock is trading below all major moving averages with no near-term support levels to anchor buyers. The lone viable options contract in the provided chain—CHPT20260116C12—offers a 197.4x leverage ratio but carries a delta of 0.091, suggesting minimal directional sensitivity. With implied volatility at 18.18%, the contract's theta decay (-0.0008) and gamma (0.133) suggest time erosion is outpacing price sensitivity. This call option, expiring January 16, 2026, could benefit from a 5% downside scenario (targeting $9.39), though its low delta limits upside potential. Aggressive short-sellers might consider this contract for volatility-driven plays, but bear in mind the stock's 72% annual decline and weak cash flow metrics. Leveraged ETFs are unavailable, but Tesla's 3.69% intraday gain in the EV sector highlights the sector's divergence from CHPT's collapse.

Backtest ChargePoint Stock Performance
The CHPT ETF has experienced a 19% intraday plunge, and the backtest results show a mixed performance in the following days. The 3-day win rate is 45.80%, the 10-day win rate is 44.58%, and the 30-day win rate is 41.22%. However, the ETF has negative returns in the short term, with a 3-day return of -0.23%, a 10-day return of -1.10%, and a 30-day return of -2.45%. The maximum return during the backtest period was -0.14%, which occurred on day 4 after the intraday plunge.

Nowhere to Hide: CHPT's Freefall Demands Immediate Action
ChargePoint's 19% intraday collapse confirms the stock is in terminal decline, with technicals and fundamentals aligning against recovery. The reverse split was a regulatory bandage, not a cure, and the 52-week range of 9-40 shows the market has already priced in worst-case scenarios. Investors should avoid long positions and monitor Tesla's (TSLA) 3.69% gain as a barometer of sector sentiment. For CHPT, the immediate priority is a $9.00 support level breakdown, which would confirm a new leg lower. Those with short exposure must watch for regulatory intervention or liquidity events, but the writing is on the wall—this is a stock with no floor and a ceiling of zero.