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EVgo Secures $1.25B Loan to Build Fast-Charging Stalls Across US
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EVgo, Inc. (EVGO - Free Report) has finalized a $1.25 billion guaranteed loan from the U.S. Department of Energy (“DOE”) Loan Programs Office under the Title 17 Clean Energy Financing Program. The loan features a 17-year term with capitalized interest during a five-year deployment period starting in 2025. This funding will support the construction of 7,500 new fast-charging stalls across the country, significantly expanding EVgo’s public charging network. By 2029, this expansion will bring EVGO’s owned and operated fast charging stalls to at least 10,000, tripling its current network size.
The large-scale development of high-power public charging stations aims to boost consumer confidence in EV range reliability, encouraging more Americans to switch to electric vehicles. Beyond enhancing charging access, this initiative is expected to create jobs and drive local economic growth. It also supports the automotive industry's investment in affordable EV models, with more than 30 new options set to launch by the end of 2025, supplementing the 70+ models already available. Currently, EVs account for approximately 9% of new vehicle sales, and improved public charging availability is crucial for further market growth.
EVgo anticipates this project will generate over 1,000 jobs in the United States, including more than 700 contracted positions in construction, engineering, development and operations. The closing of the DOE loan follows an 18-month process that began with a conditional commitment on Oct. 3, 2024.
In the third quarter, EVgo reported revenues of $67.5 million, up from $35.1 million in the corresponding quarter of 2023 due to increased charging network and eXtend revenues. For 2024, the company expects total revenues in the range of $250-$265 million compared with $161 million reported in 2023. It expects adjusted EBITDA loss in the range of $32-$38 million compared with the loss of $58.8 million reported in 2023.
The Zacks Consensus Estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.66% and 51.98%, respectively. EPS estimates for 2024 and 2025 have improved 75 cents and 88 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for TSLA’s 2024 sales suggests year-over-year growth of 2.97%. EPS estimates for 2024 have improved 22 cents in the past 60 days. EPS estimates for 2025 have improved 7 cents in the past 30 days.
The Zacks Consensus Estimate for BLBD’s fiscal 2025 sales and earnings suggests year-over-year growth of 10.97% and 12.14%, respectively. EPS estimates for fiscal 2025 have improved 18 cents in the past 30 days.
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EVgo Secures $1.25B Loan to Build Fast-Charging Stalls Across US
EVgo, Inc. (EVGO - Free Report) has finalized a $1.25 billion guaranteed loan from the U.S. Department of Energy (“DOE”) Loan Programs Office under the Title 17 Clean Energy Financing Program. The loan features a 17-year term with capitalized interest during a five-year deployment period starting in 2025. This funding will support the construction of 7,500 new fast-charging stalls across the country, significantly expanding EVgo’s public charging network. By 2029, this expansion will bring EVGO’s owned and operated fast charging stalls to at least 10,000, tripling its current network size.
The large-scale development of high-power public charging stations aims to boost consumer confidence in EV range reliability, encouraging more Americans to switch to electric vehicles. Beyond enhancing charging access, this initiative is expected to create jobs and drive local economic growth. It also supports the automotive industry's investment in affordable EV models, with more than 30 new options set to launch by the end of 2025, supplementing the 70+ models already available. Currently, EVs account for approximately 9% of new vehicle sales, and improved public charging availability is crucial for further market growth.
EVgo anticipates this project will generate over 1,000 jobs in the United States, including more than 700 contracted positions in construction, engineering, development and operations. The closing of the DOE loan follows an 18-month process that began with a conditional commitment on Oct. 3, 2024.
In the third quarter, EVgo reported revenues of $67.5 million, up from $35.1 million in the corresponding quarter of 2023 due to increased charging network and eXtend revenues. For 2024, the company expects total revenues in the range of $250-$265 million compared with $161 million reported in 2023. It expects adjusted EBITDA loss in the range of $32-$38 million compared with the loss of $58.8 million reported in 2023.
EVGO’s Zacks Rank & Key Picks
EVgo currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the auto space are Dorman Products, Inc. (DORM - Free Report) , Tesla, Inc. (TSLA - Free Report) and Blue Bird Corporation (BLBD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.66% and 51.98%, respectively. EPS estimates for 2024 and 2025 have improved 75 cents and 88 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for TSLA’s 2024 sales suggests year-over-year growth of 2.97%. EPS estimates for 2024 have improved 22 cents in the past 60 days. EPS estimates for 2025 have improved 7 cents in the past 30 days.
The Zacks Consensus Estimate for BLBD’s fiscal 2025 sales and earnings suggests year-over-year growth of 10.97% and 12.14%, respectively. EPS estimates for fiscal 2025 have improved 18 cents in the past 30 days.