The case for & against
Bull & Bear analysis
EVgo, Inc. (NASDAQ: EVGO) is a leading public charging network for electric vehicles (EVs) in the U.S. The company focuses on the development and deployment of fast-charging infrastructure, aiming to position itself at the forefront of the shift towards electric mobility. Through strategic partnerships, most notably with Tesla, EVgo is planning significant expansion of its charging network in response to the increasing demand for EV infrastructure aligned with the anticipated growth in electric vehicle adoption.
Bull says
- ↑Tesla deal doubles addressable market, boosting future revenue
- ↑Active stalls reached 5,380 (+3× since 2021); targeting 1,350–1,625 new stalls in 2026
- ↑Core charging revenue hit $61 M in Q2 (+19% YoY); full-year guide of $400–430 M
- ↑Charging gross margin improved to 39% (up 2 pp TTM), reflecting operational efficiency
- ↑$835 M liquidity available to fund network expansion with minimal dilution
- ↑Positive growth and liquidity factors support upside amid rising fuel prices
Bear says
- ↓Q2 adjusted EBITDA loss of $10.6 M underscores persistent unprofitability
- ↓Total revenue fell 16% YoY to $83 M, reliant on charging segment
- ↓New stalls show slower throughput ramp, risking revenue expectations
- ↓High price volatility and -63% 12-month return deter risk-averse investors
- ↓Dependent on EV adoption; loss of federal incentives may curb demand
- ↓Negative revisions, high short interest, and weak profitability factors signal bearish sentiment
Investment themes with EVGO
Battery-powered vehicles driving transport electrification and growth
Stocks with high short interest ratios
Stocks with highest short interest
Stocks recommended for short-selling opportunities
Earnings Call · Q4 2023 · Mgmt. Guidance
Transcript signals
Bull points
- Thank you, Badar. EVgo ended 2023 with yet another strong quarter, mostly driven by the continued growth of our owned and operated charging network. Revenue in the fourth quarter was $50 million, which represents an 83% year-over-year increase. This growth was primarily driven by increased charging revenues.
- Retail charging revenue grew from $5.8 million in the fourth quarter of 2022 to $16.7 million in the fourth quarter of 2023, exhibiting a 186% year-over-year increase. Commercial charging revenue grew from $1.3 million in the fourth quarter of 2022 to $6.3 million in the fourth quarter of 2023, exhibiting a 378% year-over-year increase.
- EVgo's network throughput continues to accelerate in the fourth quarter, growing faster than EV VIO growth over the same time period. As Badar discussed earlier, EVgo is focused on the fastest growing segment of the charging market, DCFC, and it can clearly be seen in our numbers. This accelerated growth is driven by a number of factors. EV buyers moving from early to mass adopters with a higher portion of multi union dwellers and the rapid growth in rideshare, as well as EV vehicle miles traveled finally catching up to those of ICE, increasing EV charge rates or how much electricity is delivered over the time period to a vehicle, and heavy less efficient EV models.
Bear points
- Adjusted EBITDA loss improved by $21 million in 2023 to a loss of $58.8 million versus a loss of $80.2 million in 2022. Cash, cash equivalents and restricted cash was $209 million as of December 31, 2023. Cash used in operations was $37.1 million for the year compared to $58.8 million in 2022, clearly demonstrating our focus on reducing the operational cash burn and setting EVgo on a clear path to profitability.
- negative $58.8 million.
- Adjusted G&A as percent of revenue decreased from 92% to 54% over the same time period.