EVgo (EVGO) Intrigues But Upside Will Depend on the Economy

As a fundamental narrative, electric vehicle infrastructure provider EVgo (EVGO) offers a sensible and therefore compelling opportunity. Rather than taking a shot on a specific vehicle brand – which faces the volatility of consumer whims and trends – Evgo provides what the EV industry needs to truly get moving: a vast network of public charging stations.

But as much sense as the concept makes, the market hasn’t been kind to EVGO stock. Yes, for the year so far, shares gained more than 13% of equity value. However, during the midweek session, they plunged nearly 19%. Investors took a dim view of EVgo which announced that it was raising cash through an underwritten public offering of $125 million worth of its Class A common stock.