Key Takeaways Musk-Trump clash erases $150B from TSLA's value in its worst single-day drop on record. Trump vows to axe Tesla's federal support, putting EV credits and contracts on the chopping block. Tesla faces slumping global sales and growing U.S. regulatory scrutiny of its robotaxi project.Well, they didn’t exactly seem like besties forever, but neither did we expect things to get this ugly between Elon Musk, the richest man in the world and Tesla’s (TSLA) CEO, and US President Donald Trump. In fact, ...

Industry Overview - The electric vehicle (EV) industry is currently facing significant challenges, including tariffs, rising EV prices, and a negative political environment, which are impacting automakers and the broader EV ecosystem [1] - EV sales in the U.S. accounted for 8.1% of total vehicle sales last year, a slight increase from 7.8% in 2023, indicating slow adoption rates due to high prices [4] ChargePoint Company Analysis - ChargePoint's share price has decreased by 60% over the past year, now trading below $1, raising concerns among investors about the stock's potential [2] - The average transaction cost for a new electric vehicle was $59,200 in April, a nearly 4% increase from the previous year, making EVs less accessible to many buyers [4] - ChargePoint's sales fell by 18% in fiscal 2025 to $417 million, with projections for first-quarter 2026 sales at $100 million, reflecting a nearly 7% decline from the same quarter last year [9] - The company reported a non-GAAP net loss of approximately $159 million last year, although this was an improvement from a loss of about $297 million in 2024 [10] - ChargePoint's largest revenue segment, networked charging system sales, decreased by 35%, while subscription sales increased by 20% [10] External Challenges - Tariffs on automotive imports are negatively affecting U.S.-based EV manufacturers, leading to increased production costs [6] - Political uncertainty surrounding tariffs has caused major automakers like Ford, Stellantis, and General Motors to withdraw their 2025 guidance [7] - A recent bill passed by Republicans in the House aims to roll back tax credit incentives for EV purchases, which could further hinder EV adoption [8] Investment Outlook - Despite ChargePoint's low price-to-sales multiple of 0.75, the current market conditions and company-specific challenges suggest that it may not be a good investment opportunity [11] - The company and the broader EV industry are expected to continue facing serious headwinds that could further slow growth, making it difficult for ChargePoint to achieve market-beating returns in the near future [12]