(Bloomberg) -- Shares of EVgo Inc. jumped as much as 41%, the most intraday since November 2021, after the electric vehicle charging company received a loan guarantee of up to $1.05 billion from the US Department of Energy.
The financing would allow the Los Angeles-based company to build out about 7,500 additional fast charging stalls across the US in states including Arizona, California, Florida, Georgia and Illinois, EVgo said in a statement Thursday.
The Biden administration has pushed to build a 500,000-strong national electric vehicle charging network by 2030. Getting low-cost financing for the build-out of charging infrastructure across the country is considered key to helping increase the adoption of EVs.
Incentives will also lower installation costs for operators as charging plugs are much more expensive in the US than in other regions, according to BloombergNEF.
EVgo operates nearly 1,000 fast-charging stations across the US, and it recently partnered with General Motors Co. to install an additional 400 stalls.
(Updates trading and adds details beginning in first paragraph.)
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