ChargePoint Holdings Inc (NYSE:CHPT) shares are trading lower Tuesday, hitting a new all-time low despite a lack of company-specific news for the session. The decline signals a stark reversal of sentiment following the electric vehicle charging network company’s third-quarter earnings report earlier this month.

• ChargePoint stock is testing lower boundaries. What’s behind CHPT weakness?

What To Know: While the stock initially surged over 25% in early December after reporting revenue of $105.67 million, beating the consensus estimate of $96.71 million, investor enthusiasm appears to have evaporated. The current sell-off aligns with the caution expressed by analysts who warned that the company’s “turnaround” faces significant headwinds.

Despite CEO Rick Wilmer declaring a “return to growth” and noting a debt reduction of $172 million, fundamental concerns persist. ChargePoint reported a wider-than-expected adjusted loss of $2.23 per share for third-quarter, missing the analyst estimate of $1.31.

Following the report, analysts at RBC Capital and Roth Capital lowered their price targets to $9 and $8.50, respectively, while JPMorgan reiterated an Underweight rating.

Market skepticism may be rooted in broader sector challenges. Analysts have noted that ChargePoint is unlikely to see meaningful margin improvement for several quarters and faces risks from tapering U.S. demand. EV sales also face potential headwinds from tax credits.

Tuesday's slide suggests the market is now pricing in these longer-term hurdles rather than better-than-expected revenue reported earlier this month.

Benzinga Edge Rankings: Underscoring the stock’s current technical weakness, Benzinga Edge data highlights a low Momentum score of 1.45, accompanied by negative price trends across short, medium and long-term horizons.

CHPT Price Action: ChargePoint shares were down 4.84% at $6.94 at the time of publication on Tuesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

With the stock now at a new 52-week low, it faces critical support around the $6.90 level, which was the low for the session. If this support fails to hold, there could be further downside potential.

Conversely, resistance is likely to be encountered around the $7.20 mark, where sellers may step in to cap any short-term rallies.

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