LOS ANGELES - EVgo Inc. (NASDAQ: NASDAQ:EVGO), a prominent public fast charging network for electric vehicles (EVs) in the United States, has been conditionally committed to receive up to $1.05 billion in debt financing backed by the U.S. Department of Energy (DOE). The loan guarantee under the Title 17 program is aimed at expanding EVgo's fast charging network across community locations nationwide.
The financing is expected to facilitate the construction of approximately 7,500 new DC fast charging stalls by 2030, with a focus on states including Arizona, California, Florida, Georgia, Illinois, Michigan, New Jersey, New York, Pennsylvania, and Texas. This expansion is intended to complement the National Electric Vehicle Infrastructure (NEVI) Formula Program by providing localized charging solutions, particularly for those living in multifamily housing and relying on public charging.
In line with the Justice40 initiative by the Biden-Harris administration, more than 40% of the new charging stations are planned for marginalized communities disproportionately affected by environmental issues. EVgo also intends to utilize the expanded 30C tax credit from the Inflation Reduction Act to further support the infrastructure buildout in rural and lower-income areas.
Badar Khan, CEO of EVgo, expressed that the investment would significantly accelerate their network expansion, enhancing public charging access for EV drivers across the country.
The financing, to be provided by the Federal Financing Bank and guaranteed by the DOE, does not require EVgo to raise additional equity. The company anticipates that the project will generate over 1,000 jobs, with more than 700 contracted positions in various roles.
EVgo has a history of public-private partnerships and will continue to work with utilities, state agencies, and retail site hosts to promote EV charging accessibility and vehicle adoption. The company is also investing in next-generation charging technology, with plans to start deployment in the second half of 2026.
While the DOE's conditional commitment is a positive step, EVgo must meet specific conditions before the loan is finalized and disbursed.
The information in this article is based on a press release statement from EVgo.
In other recent news, EVgo Inc. has seen major developments in its operations and financial performance. The company recently appointed Paul Dobson as its new Chief Financial Officer, a move that is expected to guide EVgo through its next growth phase and towards profitability. The firm also announced a partnership with General Motors (NYSE:GM) to install 400 new fast charging stalls across the United States, with the first locations expected to open in 2025.
On the financial front, EVgo reported a substantial 32% year-over-year revenue increase, surpassing $66 million. Analysts from Stifel and Cantor Fitzgerald have maintained positive outlooks for EVgo. Stifel retained a Buy rating, while Cantor Fitzgerald increased its price target for EVgo's shares to $5.00.
In addition to these developments, EVgo has been enhancing its fast charging network through the EVgo ReNew program. The initiative has led to a 115% increase in the number of charging stalls and a growth of over 80% in locations that can serve at least six vehicles. The company is also developing a next-generation charging architecture expected to deploy in the second half of 2026. These developments are part of recent efforts to maintain EVgo's position in the competitive EV charging landscape.
InvestingPro Insights
EVgo's recent $1.05 billion conditional commitment from the U.S. Department of Energy aligns with the company's strong growth trajectory. According to InvestingPro data, EVgo's revenue growth stands at an impressive 82.01% over the last twelve months as of Q2 2023, with quarterly revenue growth at 31.78% in Q2 2023. This robust growth pattern supports the company's ambitious expansion plans for its charging network.
InvestingPro Tips highlight that analysts anticipate sales growth in the current year, which is consistent with the expected impact of this significant financing. The company's liquid assets exceeding short-term obligations, as noted in another InvestingPro Tip, suggests EVgo is well-positioned to manage the upcoming expansion without immediate financial strain.
However, investors should note that EVgo is not currently profitable, with an operating income margin of -64.97% over the last twelve months. This aligns with the InvestingPro Tip indicating that analysts do not anticipate the company to be profitable this year. The substantial government-backed loan could be crucial for EVgo's path to profitability as it scales its operations.
The stock's performance has been strong recently, with InvestingPro data showing a 55.34% price return over the last three months and a 77.83% return over six months. This positive momentum might reflect market optimism about EVgo's growth prospects and the potential impact of government support.
For readers interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for EVgo, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.