EVgo Is Positioned For Quantity Over Quality And May Risk Margin Compression

Oct. 04, 2024 4:15 PM ETEVgo, Inc. (EVGO) StockGM, TM3 Comments
Michael Del Monte profile picture
Michael Del Monte
3.4K Followers
(12min)

Summary

  • EVgo stock surged 60% following a $1.05 billion DOE loan to further develop the national charging network, 40% of which will be built in marginalized areas.
  • EVgo's partnership with GM aims to elevate charging stations' quality, adding 400 fast-charging stalls in key states, potentially making public charging more appealing to customers.
  • EV adoption is falling out of favor, with consumer preferences turning to hybrid models. OEMs have broadly cut back on EV and battery programs as a result of declining demand.

EVgo charging station

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EVgo, Inc. (NASDAQ:EVGO) released a major update on October 3, 2024, that has acted as a catalyst for the stock that sent the share price upwards by 60% by market close. EVgo announced a $1.05b guaranteed loan through the Department of Energy

This article was written by

Michael Del Monte profile picture
3.4K Followers
Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working in industries that range from O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Michael takes a macro-value-oriented approach to investment analysis and prides himself in being able to make investment recommendations based on cross-industry analysis.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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