EVgo Shares Surge on $1 Billion Energy Department Loan Commitment

By Dean Seal

Shares of EVgo surged after the company said it received a conditional commitment for a $1.05 billion loan from the U.S. Department of Energy.

The stock was up 28% at $5.03 in premarket trading. Shares were up 10% year-to-date when the market closed Wednesday.

The electric vehicle charger maker said before the market opened that the Energy Department has agreed to provide $1.05 billion in low-cost debt financing to accelerate the expansion of a fast-charging network around the U.S.

EVgo said the financing will help to scale its charging footprint and increase nationwide access to charging stations. More than 40% of the stations to be built using the financing will be placed in marginalized areas, in alignment with the Biden-Harris administration's Justice40 initiative, the company said.

The conditional commitment indicates the Energy Department's intent to provide financing. The Los Angeles-based company has to satisfy certain technical, legal, environmental, and financial conditions before the agency funds the loan.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

October 03, 2024 09:35 ET (13:35 GMT)

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