As the operator of an electric car charging network revealed a significant turning point in its development plan, EVgo Inc. (EVGO, Financials) was trading at $4.14, down 7.2% in Wednesday's trading. Under the Title 17 Clean Energy Financing Program of the United States Department of Energy, the business stated obtaining its first $75 million drawdown on a $1.25 billion loan guarantee.
Aiming to expand its overall owned and controlled network to at least 10,000 by 2029, EVgo's larger plan calls for the financing to be part of the construction of about 7,500 additional public fast charging stations. Low-cost funding offered by the DOE program accelerates sustainable energy projects; EVgo observed the drawdown shows its operational preparedness to satisfy program criteria.
The firm claims that this growth not only strengthens its operational and financial scalability but also satisfies growing demand for electric car infrastructure all throughout the United States. Working with EVgo, General Motors (GM, Financials) is helping to install 2,850 DC public charging stations, including 400 rapid charging stations in key cities.
The CEO of EVgo credited the company's strategic emphasis on expanding its operations and satisfying the rising demands of EV drivers all around for the development. GM also underlined the need of public charging accessibility in line with its larger initiatives on the acceptance of electric vehicles.
The drop in stock price conforms to a larger pattern of market volatility in the EV industry.
