icon
icon
icon
icon
Upgrade
icon

EVgo (EVGO.US) surges 61% on $1.1B loan commitment from the U.S. Department of Energy

AInvestThursday, Oct 3, 2024 9:30 pm ET
1min read

Intelligent Finance learned that EVgo Inc. (EVGO.US), an electric vehicle charging company, has received a conditional loan guarantee of up to $1.05 billion from the U.S. Department of Energy to expand its network; the news sent the company's stock soaring 60.81% on Thursday, its biggest gain in more than three years. EVgo said in a statement on Thursday that the financing would allow it to build about 7,500 fast-charging stations in Arizona, California, Florida, Georgia and Illinois.

The Biden administration is pushing to build a national EV charging network of more than 500,000 stations by 2030; low-cost financing for charging infrastructure across the U.S. is seen as key to helping boost EV adoption. Incentives will also be aimed at reducing installation costs for operators, as charging plugs are much more expensive in the U.S. than elsewhere, according to reports.

Earlier on Thursday, Morgan Stanley raised its rating on the company to "overweight" from "neutral", saying companies like EVgo that own and operate their own charging infrastructure will outperform peers. EVgo operates nearly 1,000 fast-charging stations across the U.S. and recently partnered with General Motors Co. (GM.US) to install another 400 charging stations.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.