Why ChargePoint, Volta, and Arrival Stocks Popped Monday
ChargePoint Holdings (NYSE: CHPT), Volta (NYSE: VLTA), and Arrival (NASDAQ: ARVL) are all early-stage electric vehicle (EV) companies. Another thing they have in common is that they are all losing money as they invest to grow their respective businesses. But today, these stocks are all rising. At 10:50 a.m. ET, shares of EV charging networks ChargePoint and Volta were up 4.1% and 19.1%, respectively. The stock of EV start-up Arrival was 12.1% higher.
The reason for the moves was optimism and excitement generated by the U.S. Senate passing the Inflation Reduction Act over the weekend. The legislation that contains more than $300 billion to support clean energy development and electric car demand seems to now have a clear path to becoming law.
Based on the strength of today's stock moves, investors seem to think the additional investments in the sector will be more meaningful for Volta and Arrival. That makes sense, as ChargePoint is already a much more established business after generating $242 million in revenue for its 2022 fiscal year, which ended Jan. 31. ChargePoint also already expects that amount to approximately double in its current fiscal year.
Source Fool.com
