EVgo (EVGO, Financial), a key player in the U.S. electric vehicle charging network, saw its stock price soar over 13% after announcing a $1.25 billion loan from the Department of Energy. This funding aims to support the deployment of approximately 7,500 high-power EV fast chargers across the nation, aligning with the U.S. government's ambitious carbon reduction goals.
The expansion will increase EVgo's network to at least 10,000 high-power chargers by 2029, more than doubling its coverage. The loan, part of the DOE's Clean Energy Financing Program, was issued following a conditional commitment in early October.
CEO Badar Khan emphasized that this public-private partnership will help expand EVgo's charging infrastructure to meet the growing demand for EVs in the U.S. The loan is particularly crucial as EVgo has struggled since the Federal Reserve's interest rate hikes, with its stock plummeting from a 2021 peak of $24 to around $6.20.
