ChargePoint Notified of Non-Compliance with NYSE Share Price Listing Rule
ChargePoint Holdings, Inc., a leading provider of networked solutions for charging electric vehicles (EVs), announced today that it has received a notification from the New York Stock Exchange (NYSE) regarding its non-compliance with the NYSE’s minimum share price listing requirements. The notification, which was issued on February 19, 2025, states that ChargePoint is not in compliance with Section 802.01C of the NYSE Listed Company Manual. This rule requires that a company’s common stock maintain an average closing price of at least $1.00 over a consecutive 30 trading-day period. ChargePoint’s stock has fallen below this threshold, triggering the deficiency notice.
NYSE Compliance and Impact on ChargePoint’s Listing
It is important to note that this notice is a deficiency notification rather than an immediate delisting action. This means that stock will continue to be listed and traded on the NYSE while the company works toward regaining compliance. ChargePoint has indicated that it intends to notify the NYSE by March 5, 2025, of its plan to rectify the situation and restore compliance with the exchange’s listing standards.
Under NYSE rules, the company has a six-month period from the date of the notice to cure the deficiency. If ChargePoint is able to achieve a closing share price of at least $1.00 on the last trading day of any calendar month within this period, and maintain an average closing price of at least $1.00 over the 30 trading-day period ending on that date, the company will be considered back in compliance.
Should ChargePoint fail to meet these conditions within the six-month cure period, the company may face further actions from the NYSE, including delisting proceedings. However, has emphasized that it is actively considering available remedies to address the stock price issue and intends to take necessary steps to comply with NYSE requirements.
Potential Strategies for Regaining Compliance
ChargePoint has stated that it is evaluating multiple options to address the non-compliance issue and ensure that its stock price returns to the required threshold. One potential solution under consideration is a reverse stock split, a common strategy employed by companies facing similar listing challenges.
A reverse stock split consolidates existing shares into fewer, higher-priced shares, effectively increasing the stock’s per-share value without altering the company’s overall market capitalization. If decides to pursue this option, it will require approval from its stockholders, which would likely be sought at the company’s next annual meeting.
NYSE rules provide additional flexibility in cases where companies plan to implement a stockholder-approved action to cure a price deficiency. If ChargePoint determines that a reverse stock split or another corrective measure is necessary and seeks stockholder approval accordingly, the deficiency will be considered cured if the stock price promptly exceeds $1.00 per share following the action and remains above that threshold for at least 30 consecutive trading days.
Ongoing Business Operations and Regulatory Compliance
Despite the notice of non-compliance, ChargePoint has assured investors, customers, and stakeholders that the development will not impact its day-to-day business operations. The company remains committed to its mission of advancing electric mobility by providing innovative charging solutions to consumers, businesses, and fleet operators.
Additionally, ChargePoint has confirmed that the NYSE notification does not affect its reporting obligations with the U.S. Securities and Exchange Commission (SEC). The company will continue to file periodic reports, financial statements, and other required disclosures in accordance with SEC regulations. This ensures transparency and continued communication with investors and regulatory authorities.
Market Conditions and Broader Implications
ChargePoint’s stock price challenges come amid broader market fluctuations affecting the EV sector and clean energy stocks. The electric vehicle industry has experienced increased volatility in recent months due to factors such as fluctuating consumer demand, supply chain disruptions, evolving government policies, and competition among EV charging providers. These macroeconomic conditions have influenced stock performance across the sector, making it crucial for companies like ChargePoint to implement strategic initiatives to stabilize investor confidence.
In addition to external market pressures, ChargePoint’s stock performance may also be affected by its financial results, growth strategies, and operational developments. The company’s ability to secure new partnerships, expand its network, and improve revenue generation will likely play a key role in its stock price recovery.
ChargePoint’s Commitment to Investors and the EV Market
ChargePoint remains committed to its long-term vision of building a comprehensive and accessible EV charging network. As the adoption of electric vehicles continues to rise globally, the demand for reliable charging infrastructure is expected to grow. ChargePoint is positioned as a key player in this evolving landscape, with a strong presence in North America and Europe.
The company has reiterated its dedication to enhancing its financial position, improving operational efficiencies, and driving innovation in the EV charging industry. ChargePoint’s leadership team has expressed confidence in the company’s ability to navigate current challenges and achieve sustainable growth in the future.
What Investors Should Know
For investors, ChargePoint’s non-compliance notice serves as a reminder of the importance of monitoring market conditions, regulatory requirements, and company performance. While the deficiency notice highlights a short-term challenge, the company’s response strategy will be a key factor in determining its long-term trajectory.
Investors should consider the following factors when evaluating ChargePoint’s outlook:
- Stock Price Performance: ChargePoint’s ability to regain compliance will depend on its success in maintaining a closing share price above $1.00 for a sustained period. Investors should track stock price movements and company updates regarding corrective actions.
- Financial Health and Growth Strategy: ChargePoint’s revenue growth, profitability, and expansion plans will be critical indicators of its overall stability. Quarterly earnings reports and strategic developments should be analyzed to assess the company’s financial strength.
- Market Trends and Competitive Landscape: Broader trends in the EV industry, government policies supporting clean energy, and competitive positioning will influence ChargePoint’s market standing. Understanding these dynamics can provide insights into the company’s long-term potential.
- Management’s Response and Investor Relations: ChargePoint’s leadership team will play a crucial role in navigating this challenge. Transparent communication, proactive measures, and strategic decision-making will impact investor sentiment and confidence in the company’s future.
