Uncle Sam Issues Seismic $1.05 Billion Handout to Boost $EVGO's Charging Network (Shares Pop 61%)

Everyone: The EV industry is dying… 

EVgo: Hold my beer… 

Well, friends it appears the EV charging game just got a serious power-up. And surprisingly, it has absolutely zero friggin thing to do with Tesla or… shocker… Elon. Instead it all has to do with EVgo—a little engine that just got a massive hand out from the U.S. Government. 

(Source: Giphy) 

In short, EVgo suddenly saw a fat $1.05 billion loan guarantee fall from Uncle Sam himself (aka the U.S. Department of Energy). Which would act as a conditional loan guarantee to build an additional 7,500 fast-charging stalls across the U.S. 

(Source: E&E News) 

Now that might not seem that revolutionary, but it’s a big freaking deal, especially when you remember that the Biden administration is gunning for 500,000 charging stations by 2030. Meaning EVgo’s just received a Wonka golden ticket to benefit handsomely on the governments tree hugging “net zero emission” goals. 

(Source: Giphy) 

As expected, this had investors acting like a kid on Christmas morning as bulls pumped EVgo’s stock north of 61%—aka its biggest jump since January 2021. In response, JPMorgan, who probably has shady dealings on the performance of this stock came out of the woodworks with a new overweight rating… fanning the flame to EVgos stellar Thursday price action. 

(Source: Investopedia) 

Now with that said, why choose EVgo for this $1.05 billion windfall? Well, simply put, EVgo operates nearly 1,000 fast-charging stations across the U.S. and has been making some serious moves lately—like their partnership with General Motors to roll out an extra 400 stalls. So clearly, the DoE saw that EVgo wasn’t just an EV company solely relying on its affiliation with the industry… but they’re actively cashin’ checks and snappin’ necks within it. Meaning, now, with this DoE boost, they’re about to supercharge (pun intended) their network reach even more, targeting key states like Arizona, California, and Florida.

(Source: EVgo)

But, but, but… keep in mind, this is not just about adding more plugs. You see, EVgo’s business model is a bit different from the rest. Unlike some of their peers, EVgo owns and operates its own chargers. It’s like being the landlord and the tenant all in one. According to JPMorgan analyst Bill Peterson, this model puts the company in primetime position to outperform in the long run. Why? Because they’re raking in nearly 100% cash margins every time an EV owner plugs in. Duhhh, passive income bro… 

(Source: Giphy) 

Also, it’s worth noting that EVgo’s chargers aren’t just for the Tesla-driving elite. More than 40% of their new chargers are planned for “disadvantaged communities”—which is a fancy way of saying lower-income areas where people are less likely to have their own private driveways. 

EVgo’s CEO, Badar Khan, summed up this value add nicely saying, “It’s about providing access to clean air through transport electrification.” Translation: They’re trying to make charging a thing for everyone, not just the folks with six-figure salaries. 

Khan copying Mark Zuckerburgs “Metaverse for Everyone” reveal (Source: ImgFlip) 

So given all of this, what does this mean for the rest of the EV world? Well, for starters, it’s a wake-up call for competitors. EVgo’s not just expanding—they’re catapulting their growth . And with the government backing them, they’ve got the kind of low-cost financing that can help them seriously outpace the competition.

(Source: Giphy) 

But let’s not get too ahead of ourselves. EVgo’s stock has been absolutely ripping this year as it’s up 104.06% YTD, and 208.90% over the last six months alone.  Meaning, with an uptrend like that, in an EV industry that’s struggling all across the globe… you can’t help but think of this as a hype train priming up for a bigly correction. Yet, still, analysts like Peterson think the worst is behind them. In fact, JPMorgan slapped a $7 price target on the stock, which implies a potential 78% upside from its last close. So yeah, there’s that. 

(Source: MooMoo Tech) 

In the end, EVgo’s definitely got some of that good juice—literally and metaphorically. With a $1.05 billion loan guarantee in their back pocket and a business model that’s built for long-term success. Now like every sign off, only time will tell if that’s the case…

But in the meantime, keep an eye on this stock going forward and as always, stay safe and stay frosty, friends! Until next time… 

P.S. Our NEW alert today just squeezed to 25.88% in less than 30 minutes! The best part? We think it could reach $7 for a massive triple-digit gain! Click here now to get the details while prices are still cheap… 

Stocks.News holds positions in Tesla as mentioned in the article.