EVgo up 64% after $1.1 billion loan commitment from DOE

(Bloomberg) — Shares of EVgo Inc. rose the most in more than three years after the electric vehicle charging company received a conditional loan guarantee of up to $1.05 billion from the U.S. Department of Energy to expand its network.

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The funding would allow the Los Angeles-based company to build about 7,500 additional fast-charging stations across the U.S. in states including Arizona, California, Florida, Georgia and Illinois, EVgo said in a statement Thursday.

The Biden administration has pushed to build a strong national electric vehicle charging network of 500,000 by 2030. Obtaining low-cost financing to build charging infrastructure across the country is seen as critical to helping increase EV adoption.

The incentives will also reduce installation costs for operators, as charging sockets are much more expensive in the US than in other regions, according to BloombergNEF.

Shares of EVgo rose as much as 64%, the biggest intraday jump since January 2021, to $6.44.

Early Thursday, JPMorgan upgraded the stock to overweight from neutral, saying firms like EVgo that own and operate its own charging infrastructure will outperform like-for-like.

EVgo operates nearly 1,000 fast-charging stations in the U.S. and recently partnered with General Motors Co. to install another 400 stands.

(Updates stock price in second paragraph, adds JPMorgan upgrade in sixth paragraph.)

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