Toyota Collab Will Give EVgo Stock a Much-Needed Charge

Based in Los Angeles, charging-station manufacturer EVgo, Inc. (NASDAQ:EVGO) is an ambitious competitor in a rapidly expanding market. If you believe that there’s still room for America’s electric vehicle (EV) fast-charging network to grow, then EVGO stock definitely belongs on your watch list.

EVgo fast charging station
Source: Sundry Photography / Shutterstock.com

EVgo’s progress in building up its charging-station network, along with its customer base, has been undeniably impressive. At the end of 2021’s third quarter, the company had more than 310,000 customer accounts after adding around 36,000 of them.

Furthermore, EVgo has more than 800 fast-charging locations today, and the company’s charging network spans 35 U.S. states. Believe it or not, over 130 million people in the U.S. live within a 10 mile drive of an EVgo fast charger.

Yet, EVGO stock is highly affordable at the moment. Someday it might be much more expensive, and there’s no telling how long the window of opportunity will last.

A Closer Look at EVGO Stock

Just to recap, EVgo went public on the Nasdaq exchange on Jul. 2, 2021. The shares opened at $15 on that first trading session.

By the summer of 2021, the mania surrounding the EV market was starting to fade. Consequently, EVGO stock wasn’t a big hit on Wall Street at first and the share price sank to $7 and change in September.

Interestingly, the stock also fell to $7 and change in January of 2022. Therefore, we can detect a support level there.

By the middle of March, EVGO stock was trading above $11 and seemed to be staging a comeback. It’s perfectly fine to buy the stock at its current price, but if it goes anywhere near $7 again, this will be a terrific entry point.

The Power of Partnerships

Burgeoning businesses often rely on joint ventures as they don’t usually have the resources or the connections to succeed on their own.

EVgo is leveraging the power of partnerships to help build its market presence. For instance, the company announced an expanded collaboration with Midwestern U.S. retailer Meijer, which operates 258 super-centers and grocery stores throughout multiple U.S. states.

That’s an important partnership, no doubt about it. Yet, there’s something special about the opportunity to team up with a famous automaker — and that’s exactly what EVgo is doing in 2022.

Not long ago, Subaru (OTCMKTS:FUJHF) unveiled the new 2023 Solterra EV SUV. This is the automaker’s first ever zero-emissions vehicle.

As it turns out, Subaru has selected EVgo as the preferred EV charging partner of Subaru of America. Consequently, Subaru drivers will have access to EVgo’s charging network.

Sales of the 2023 Subaru Solterra are expected to begin in mid-2022. Meanwhile, EVgo plans to have around 16,000 charging stalls deployed by 2027.

Another Big Commitment

The EVgo-Subaru collaboration could be a game changer in the North American EV infrastructure market. Yet, there’s even bigger news afoot.

Just recently, EVgo announced a commitment from automotive giant Toyota Motor (NYSE:TM) “to provide drivers of the new Toyota bZ4X battery electric SUV with complimentary charging at EVgo’s nationwide network of public fast chargers for one year.”

Reportedly, customers who purchase or lease a new 2023 Toyota bZ4X will, free of charge and for a full year, get to use any public fast-charging station in the EVgo network. Moreover, they’ll be able to use the Toyota App to locate nearby EVgo charging stations and initiate charging for their vehicles.

It’s a win-win for everyone involved. Obviously, the drivers will enjoy the free access to EVgo’s charging stations. At the same time, EVgo will undoubtedly gain exposure and new customers from this collaboration. Plus, Toyota wants to electrify 70% of its fleet by 2030. Partnering with EVgo will certainly help Toyota achieve this goal.

The Bottom Line on EVGO Stock

The Subaru and Toyota joint ventures are huge wins for EVgo. You just never know which company might be EVgo’s next major business partner.

At this rate, EVgo could definitely reach its goal of having 16,000 charging stalls deployed by 2027. By that time, the company’s shares could be twice the current price, or even more.

Truly, this could be a ground-floor investing opportunity. As America’s fast-charging EV station network expands, EVgo’s value to the shareholders should continue to grow, as well.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.


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