The macro picture looks extraordinarily bright for electric vehicle charging infrastructure company ChargePoint (NYSE:CHPT), even if some of the sheen has been taken off CHPT stock this year.

The company’s strong second-quarter earnings report was largely overlooked. After an initial post-earnings pop, CHPT stock is down more than 10% since the early September announcement, and shares sit about 50% lower year to date.

But those who are bearish on ChargePoint seem to be turning a blind eye to the massive growth prospects for the company, which has the largest network of electric charging stations in North America and Europe. Let’s take a closer look at why I remain upbeat on CHPT stock long term.

Macro Picture Remains Favorable for EVs

The future of vehicles is electric; the only question is how fast we get there.

According to the Bloomberg New Energy Finance (NEF) Electric Vehicle Outlook 2021, sales of EVs rose 97% year over year in North America and 153% in Europe. And ResearchAndMarkets predicts the global EV market size will grow at a compound annual growth rate of 26.8% through 2030.

In the United States, major automakers and lawmakers are throwing their support behind electric vehicles. Both Ford (NYSE:F) and General Motors (NYSE:GM) have pledged to invest billions in electric vehicles.

Meanwhile, the Senate passed a $1.2 trillion infrastructure package that included $7.5 billion for EV charging infrastructure. And the Democrats’ $3.5 trillion budget reconciliation plan includes a tax credit of up to $12,500 for electric vehicle purchases. Both look much closer to getting passed after President Joe Biden told Democrats to pare back the budget bill to $1.9 trillion to $2.2 trillion. Such a compromise would be in line with my previous predictions.

Although a compromise could very well result in a lower tax credit for EV purchasers, the passage of the budget and the infrastructure bill would still be very positive for CHPT stock on the whole.

ChargePoint Delivers Strong Revenue Growth

ChargePoint CEO Pasquale Romano said during the company’s second-quarter earnings call on Sept. 1 that it continues to benefit from the rapid growth of the EV market.

ChargePoint’s quarterly sales came in at a record $56.1 million, up 61% year over year and well ahead of analysts’ estimates. Networked charging revenue soared 91% from a year ago to $40.9 million, and the company significantly grew its commercial, fleet and residential businesses.

The bulk of ChargePoint’s 118,000 activated ports, as of the end of July, were in the United States. However, the company has roughly 5,400 ports in 16 European markets.

Breaking the quarterly revenue number down, just 9%, or $5 million, came from Europe. That represented growth of 38% over the same quarter a year ago. It also means the company has a big growth opportunity across the pond, with sales poised to jump dramatically in the coming quarters and years.

Another growth avenue for ChargePoint is its entry into the vehicle data management market through its acquisition of ViriCiti. That sector is expected to grow quickly and become quite lucrative. Consulting firm McKinsey estimates the global revenue pool from car data monetization could reach $450 billion to $750 billion by 2030.

Why the Bears Are Wrong About CHPT Stock

So, what exactly is the bears’ issue with CHPT stock?

Well, Stone Fox Capital took issue with the recent earnings report, which they described as a “low-quality beat.”

While revenue came in above expectations, the quarterly loss widened. Furthermore, they note that while ChargePoint saw 91% year-over-year growth in revenue from low-margin charging systems, they only saw 22% growth in software-based revenues over the same period.

As my InvestorPlace colleague Will Ashworth wrote recently, “At this stage in the game, sustainable growth is more important from an investment perspective than the company turning a profit.”

Furthermore, ChargePoint CFO Rex Jackson explained during the earnings call that subscription revenue growth tends to lag charging system growth. This is due to some systems having a lower ratio of subscription to hardware revenue, seasonal trends, and starting subscriptions well after hardware shipments to allow for installation time.

The Bottom Line on CHPT Stock

Given the global shift to electric vehicles, ChargePoint’s leading position in the United States, and massive growth opportunities here and abroad, buoyed by government support, I continue to believe that CHPT stock represents a good buy for long-term investors.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 13 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015.  Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer.