Goldman Sachs has revised its price target for ChargePoint Holdings, Inc. (CHPT, Financial), reducing it from $0.75 to $0.50, while maintaining a Sell rating on the company's shares. The adjustment comes as the firm reassesses its expectations for the auto industry, projecting difficulties in transferring tariff-related costs to consumers amidst a general decline in demand.
The report highlights that tariffs will pose significant challenges for both automotive manufacturers and their suppliers. While car makers might partially offset these costs through strategic pricing adjustments, suppliers such as ChargePoint could face greater financial pressure.
In addition to tariff concerns, Goldman Sachs underscores the growing competitiveness from Chinese car manufacturers and a slower adoption of electric vehicles in the United States and potentially Europe as factors influencing its updated assessment.
