EVgo Inc. (NASDAQ:EVGO), a prominent electric vehicle charging company, experienced a notable rise in its stock value, with shares climbing up to 11% in premarket trading on Friday. This surge came after the company announced the closure of a $1.25 billion loan facility guaranteed by the US Department of Energy (DOE). The financing is poised to significantly bolster the company's infrastructure, with plans to install 7,500 fast-charging stalls across the United States. This expansion will increase EVgo's network to a minimum of 10,000 fast-charging stalls.
The company, in its statement released late Thursday, highlighted the potential job creation this buildout would generate, estimating over 1,000 new jobs in the US. The move comes as the Energy Department's Loan Programs Office accelerates efforts to finalize conditional loans ahead of a potential change in administration.
Bill Peterson, an analyst at JPMorgan (NYSE:JPM), commented on the development, suggesting that EVgo has presented investors with an "early holiday gift" by securing the loan facility with the DOE. He indicated that this would act as a positive catalyst for the stock. Peterson also noted that he anticipates the company will maintain a sharp focus on execution, with future operational milestones and near-term results likely to drive positive catalysts.
EVgo's CEO, Badar Khan, expressed confidence in the company's position to expand infrastructure to support the growing number of electric vehicles in the United States. "This public-private partnership will help us continue to scale our operations to serve the influx of vehicle options that will be available to American consumers in the coming years," Khan stated.
The initiative is part of a broader push to enhance the nation's EV infrastructure and reflects a growing trend towards transportation electrification. With the backing of the DOE, EVgo aims to play a critical role in facilitating the transition to electric vehicles by expanding the availability and accessibility of fast-charging options for American drivers.
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