Evgo Shares Surge Following Conditional $1 Billion DOE Loan Guarantee and JPMorgan Upgrade

Shares of EVgo Inc. experienced a remarkable increase of up to 50% on Wednesday, fueled by an optimistic upgrade from JPMorgan and news regarding a $1 billion loan guarantee from the U.S. Department of Energy (DOE).

The stock initially climbed by 9% following the upgrade from JPMorgan, gaining additional momentum after reports confirmed the DOE’s conditional commitment for the loan.

As one of the largest public fast-charging networks in the U.S., EVgo announced that it secured a conditional commitment for up to $1.05 billion in debt financing from the DOE’s Loan Programs Office.

“Public fast charging infrastructure is critical to support the rising rates of EV adoption across the U.S.,” stated Badar Khan, CEO of EVgo. He emphasized the company’s dedication to installing high-power chargers in densely populated areas and community locations, which he believes will facilitate the country’s transition to all-electric transportation.

“If finalized, this financing would significantly accelerate our expansion of essential fast charging over the next five years to serve our nation’s growing number of EV drivers,” he added.

EVgo aims to deploy around 7,500 additional fast-charging stalls throughout the country by 2030. Notably, over 40% of these new charging stalls will be situated in marginalized areas, aligning with the administration’s Justice40 initiative aimed at investing in communities affected by environmental challenges.

This initiative is part of the Biden-Harris administration’s strategy to enhance EV charging access, particularly in underserved communities.

The DOE loan guarantee is anticipated to speed up the company’s growth, especially in states such as California, Texas, Florida, and New York.

Earlier in the day, JPMorgan analysts upgraded EVgo from Neutral to Overweight, highlighting the company’s unique owner-operator model and solid network utilization in the current EV market.

The investment bank set a price target of $7 for December 2025, noting EVgo’s capacity to efficiently scale its operations and projecting that the company will achieve breakeven adjusted EBITDA by the end of 2025.

Additionally, JPMorgan placed EVgo on “Positive Catalyst Watch,” expecting further advancement from the DOE’s loan program, which analysts believe will greatly enhance EVgo’s network expansion efforts.