EVgo nears closure of $1.05 billion DOE loan, JPM notes

investing.com -EVgo Inc (NASDAQ:EVGO ). is poised to close its $1.05 billion loan from the U.S. Department of Energy (DOE), JPMorgan analyst wrote after CEO Badar Khan expressed confidence at an investor meet. 

The move is expected to accelerate the company’s expansion in the electric vehicle (EV) charging market.

Analyst at JP Morgan in a note said the loan process is largely within the company’s control, citing minimal risk due to EVGO’s proven business model and limited technical or permitting challenges.

“We not only emphasize our confidence that the loan will close, but potentially as soon as in the coming weeks and before year-end. We are placing EVGO on Positive Catalyst Watch,” analyst wrote in the note.

Note mentions that the loan process is largely within the company’s control, citing minimal risk due to EVGO’s proven business model and limited technical or permitting challenges.

The loan is expected to support EVGO’s goal of significantly expanding its charging infrastructure. Currently operating at an 800-stall run rate, the company plans to ramp up its installations to 1,500 stalls or more by the end of the decade.

Despite concerns around potential changes to U.S. policy under a second Trump administration, JPMorgan remains optimistic about EVGO’s prospects.

The company’s business model, which is not heavily reliant on federal incentives, is seen as resilient to policy shifts. Only around 10% of EVGO’s capital expenditures per stall are tied to federal funding, with the rest offset by OEM payments and state-level incentives.

Source: Investing.com