Electric Vehicle Charging Company Sees Stock Soar After Securing $1.05 Billion Loan Guarantee
EVgo Inc., a leading electric vehicle charging company, saw its stock surge by as much as 64% on Thursday after securing a conditional loan guarantee of up to $1.05 billion from the US Department of Energy. The financing will enable the Los Angeles-based company to expand its network by building out approximately 7,500 additional fast charging stalls across the US.
The expansion will focus on key states including Arizona, California, Florida, Georgia, and Illinois, bringing the company closer to achieving the Biden administration’s goal of building a 500,000-strong national electric vehicle charging network by 2030. The loan guarantee is a significant step towards increasing the adoption of electric vehicles, as low-cost financing is crucial for building out charging infrastructure across the country.
In addition to the loan guarantee, EVgo recently partnered with General Motors Co. to install an additional 400 fast-charging stalls, bringing its total to nearly 1,000 stations across the US. The company’s shares rose to $6.44, marking the biggest intraday jump since January 2021.
Industry experts believe that companies like EVgo, which own and operate their own charging infrastructure, will outperform their peers in the market. This sentiment was echoed by JPMorgan, which upgraded EVgo’s stock to overweight from neutral earlier on Thursday.
The cost of installing charging plugs in the US is significantly higher compared to other regions, making incentives like the loan guarantee crucial for operators. According to BloombergNEF, lower installation costs will help increase the adoption of electric vehicles.
As the demand for electric vehicles continues to grow, companies like EVgo are poised to play a critical role in building out the necessary infrastructure to support this growth. With the loan guarantee and partnership with General Motors, EVgo is well-positioned to capitalize on the growing demand for electric vehicle charging solutions.
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