EVgo Inc. (EVGO, Financial), an electric vehicle charging company, has obtained a conditional loan guarantee of up to $1.05 billion from the U.S. Department of Energy. This funding is aimed at expanding its charging network. Following the announcement, EVgo's stock skyrocketed by 60.81%, marking its largest gain in over three years.
The company plans to use the financing to install approximately 7,500 fast chargers across several U.S. states, including Arizona, California, Florida, Georgia, and Illinois. This development aligns with the Biden administration's goal of establishing a national network of over 500,000 electric vehicle chargers by 2030. Securing low-cost financing is considered crucial for boosting EV adoption across the country, especially since charging equipment in the U.S. is significantly more expensive than in other regions. Incentives are expected to reduce installation costs for operators.
Earlier, JPMorgan upgraded EVgo's rating from "neutral" to "overweight," highlighting that companies like EVgo, which own and operate their charging infrastructure, are likely to outperform peers. EVgo currently operates nearly 1,000 fast-charging stations nationwide and recently partnered with General Motors (GM) to install an additional 400 charging stations.
