EVgo Shares Surge on $1.25 Billion U.S. Department of Energy Loan News
The stock value of leading electric vehicle charging company EVgo Inc. saw an increase of up to 11% in pre-market trading on Friday. This rise came after the company announced that it had secured a $1.25 billion loan guarantee from the U.S. Department of Energy (DOE). This funding is set to significantly strengthen the company’s infrastructure and plans to install 7,500 fast charging stations across the United States. This expansion will increase EVgo’s network to at least 10,000 fast charging stations.
In a statement released late Thursday, the company projected that this construction would create over 1,000 new job opportunities in the U.S. This move coincides with the DOE's Credit Programs Office accelerating efforts to finalize conditional loans ahead of a potential change in administration.
JPMorgan analyst Bill Peterson commented on the development, stating that EVgo has offered investors an "early holiday gift" by securing the loan opportunity with the DOE. Peterson noted that this would serve as a positive catalyst for the stock. He also indicated that the company would continue to sharply focus on execution and that upcoming operational milestones and near-term results would likely trigger further positive catalysts.
EVgo’s CEO, Badar Khan, expressed confidence in the company’s position to expand infrastructure to support the growing number of electric vehicles in the U.S. Khan stated, "This public-private partnership will help us continue to scale our operations to serve the influx of vehicle options available to American consumers in the coming years."
This initiative is part of a broader effort to enhance the country's electric vehicle infrastructure and reflects a growing trend toward the electrification of transportation. With the support of the DOE, EVgo aims to play a critical role in facilitating the transition to electric vehicles by increasing the availability and accessibility of fast charging options for American drivers.