EVgo Secures $1.05 Billion DOE Loan for 7,500 EV Chargers, Shares Surge 47%

Oct 3, 2024, 01:25 PM

Los Angeles-based EVgo has received a conditional loan guarantee of up to $1.05 billion from the U.S. Department of Energy (DOE) to expand its electric vehicle (EV) charging infrastructure. The financing will support the construction of approximately 7,500 high-power charging stalls across 1,100 stations nationwide. This significant investment aims to accelerate the buildout of public fast charging networks, addressing the growing demand for EV charging solutions. The chargers can power two EVs simultaneously. Following the announcement, EVgo's stock surged by 47% and reached morning highs, with shares trading at levels last seen in May 2023. Additionally, JPMorgan upgraded EVgo's rating to Overweight from Neutral, with a price target of $7, citing the company's successful scaling of its fast charging owner-operator model. EVgo has a short interest of 26% of its 100 million public float.