nav
Business Operations Business Models

How Does ChargePoint Make Money (Business and Revenue Model)

The ChargePoint business model

ChargePoint logo
Here’s what you should know:
  • What is ChargePoint, and how does ChargePoint work?
  • How does ChargePoint make money?
  • Sales from their Electric Vehicle (EV) Charging Stations
  • Subscription Revenue
  • Other Revenue
  • ChargePoint subsidiaries, acquisitions, and exits
  • ChargePoint profit and revenue
  • What is the ChargePoint business and revenue model?
  • ChargePoint funding, net worth, and market cap

How does ChargePoint make money? Here is a full, in depth, breakdown of their three (3) revenue streams and the different products and services they offer, as well as the ChargePoint business and revenue model, how much ChargePoint makes per year, and how ChargePoint works.

What is ChargePoint, and how does ChargePoint work?

ChargePoint is an electric vehicle infrastructure and manufacturing company that operates in 14 countries.

Founded in 2007 by Richard Lowenthal, Dave Baxter, Harjinder Bhade, and Praveen Mandal, ChargePoint began trading on the New York Stock Exchange (NYSE) on March 1, 2021, under the ticker symbol “CHPT”.

Since that time, ChargePoint has since become the 2nd largest electric vehicle (EV) charging company (by market cap) only behind Tesla. With more than 123 million charging stations sold since being founded back in 2007.

So, how does ChargePoint work? To use ChargePoint to charge an electric vehicle, customers can either purchase a charging station for their home or by searching for the nearest public charging station.

This can be done by either visiting their website or downloading their mobile app in the Apple App Store or Google Play store.

Some of ChargePoint’s competitors include Tesla and other electric vehicle charger manufacturers.

ChargePoint App in Apple App Store | ChargePoint Business Model | How Does ChargePoint Make Money? | How Does ChargePoint Work?
Source: Apple App Store | ChargePoint

How does ChargePoint make money?

According to ChargePoint, they have sold more than 123 million charging stations since its founding back in 2007. So how does ChargePoint make money off of all those products sold?

Below is a breakdown of how much money ChargePoint makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 3 ways of how ChargePoint makes money in 2022

ChargePoint has a revenue model that makes money in three (3) ways; from the sales of their electric vehicle (EV) charging stations, subscription revenue, and other revenue.

#1. Sales from their Electric Vehicle (EV) Charging Stations

ChargePoint makes most of its money from the sales of its charging stations. In fact, $173.85 million, or 72.1% of ChargePoint’s total revenue came from the sales of their charging stations in 2021.

At the time of writing this, ChargePoint has six (6) available charging station products; ChargePoint Home, CT4000 Family, CP4000 Family, CPE 100 and CPE 200, CPF25 Family, and the Chargepoint Express Plus Family.

How much does a ChargePoint station cost?

  • $699 for the home charger
  • $1,500 to $40,000+ for fleets and commercial needs
ChargePoint charging station cost | ChargePoint Business Model | How Does ChargePoint Make Money? | How Does ChargePoint Work?
Source: ChargePoint

Note: 72.1% of ChargePoint’s total revenue came from the sales of their charging stations in 2021.

#2. Subscription Revenue

ChargePoint also makes money from its subscription revenue from ChargePoint as a Service (CPaaS). Which, in 2021, brought in an additional $53.51 million in revenue for ChargePoint.

CPaaS subscription service is tailored toward commercial and fleet customers to handle all of the electric vehicle (EV) charging in their parking lots and depots.

Which, according to ChargePoint, 76% of Fortune 50 companies are ChargePoint customers. Including companies such as Xos, Phoenix Motorcars, Gillig, and more.

ChargePoint as a Service (CPaaS) cost | ChargePoint Business Model | How Does ChargePoint Make Money? | How Does ChargePoint Work?
Source: ChargePoint

Note: ChargePoint as a Service is a B2B service available only to commercial and fleet customers.

#3. Other Revenue

Lastly, ChargePoint makes the rest of its money from what they call “other revenue”. Which, collectively totaled $13.64 million in revenue for ChargePoint in 2021.

Other revenue, according to page 45 of ChargePoint’s Form 10-K, consists of “fees received for transferring regulatory credits earned for participating in low carbon fuel programs, charging related fees received from drivers using charging sites owned and operated by ChargePoint, net transaction fees earned for processing payments collected on driver charging sessions at
charging sites owned by its customers, and other professional services.”

ChargePoint subsidiaries, acquisitions, and exits

To date, ChargePoint Holdings, Inc. has made a total of 4 acquisitions.

Mergers and acquisitions business model
Source: Crunchbase | ChargePoint

ChargePoint profit and revenue

In 2021, ChargePoint reported $241 million in revenue.

Note: Because ChargePoint Holdings, Inc. is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of ChargePoint’s publicly released financial reports, including annual reports, through ChargePoint’s investor section on their website.

What is the ChargePoint business and revenue model?

ChargePoint makes money through a few revenue models that they combine within their company, they are:

  • Transaction based business model
  • Infrastructure as a service (IaaS) business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model
  • Mergers and acquisitions (M&A) business model

ChargePoint funding, net worth, and market cap

According to ChargePoint’s Crunchbase profile, ChargePoint has raised $1.3 billion over 15 rounds and has a market cap of $5.29 billion as of June 2022.