Charging electric vehicles (EVs) in the U.S. is about to get easier. EV charging company EVgo (NASDAQ:EVGO) just announced that it will be expanding its Autocharge+ program to 50 EVs with Plug & Charge capabilities.
What does this mean? Well, anyone with an EV falling into that category will be able to simply pull up, plug in and “skip the time required to access an app, credit card, or RFID.”
This development hasn’t boosted EVGO stock yet today. However, that doesn’t mean investors shouldn’t pay attention to what it could mean for the struggling company.
What’s Happening With EVGO Stock?
Since the news broke yesterday, EVGO stock hasn’t been performing particularly well. Shares are down about 4% as of this writing. After a month of trending downward, EVgo could certainly do with a growth-driving catalyst.
Thankfully, though, this news could still help usher in a turnaround for the troubled company. With a price of around $2 per share, EVGO has the potential to be a bit more volatile. But unlike most of its peers, the stock also still has the potential to pull itself above the $5 mark.
EVgo operates in a fast-growing market that has plenty of demand and isn’t oversaturated yet. Now, the expansion of Autocharge+ reminds investors of the firm’s focus on growth.
Stacey Stewart, Senior Vice President of Charging at the company, issued the following statement about the news:
“The key to achieving widespread EV adoption in the U.S. is giving EV drivers a convenient, streamlined charging experience, and Autocharge+ does just that […] Through our collaboration with automakers and ongoing interoperability testing with new and existing EV models, EVgo continues to enhance the customer experience across the network for everyone – no matter which EV model they choose to drive.”
Investors should note that Plug & Charge EVs operate with Combined Charging System (CCS) connectors. However, EVGo plans on opening its infrastructure up to vehicles with the North American Charging Standard (NACS). Doing so will enable the charging firm to serve even more drivers.
What Comes Next?
There’s no denying that EVGO stock comes with a fair amount of risk. But if investors don’t mind stomaching that, shares could prove an excellent way to gain exposure to the EV charging market. Some EV brands have demonstrated stable growth, proving that many Americans are still committed to driving electric even as the broader electric vehicle market struggles at the moment.
InvestorPlace contributor Larry Ramer points to this trend as an encouraging development for companies like EVgo. As Ramer notes, “more EVs on the roads will translate to increased demand for EVgo’s chargers over the longer term.” Between that and its recent Autocharge+ expansion, EVGO stock could rise again, even if its current growth is slow.
On the date of publication, Samuel O’Brient did not hold (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.
