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EVgo's Shares Surge after GM Names Company Preferred EV Fleet Provider

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EVgo Inc. shares traded 14% higher after the company reported it was chosen to be a preferred provider by GM for electric vehicle fleets.

Electric vehicle (EV) charging network provider, EVgo Inc. (EVGO:NASDAQ) today announced that "General Motors Co. (GM:NYSE) has named it a preferred provider for the company's Ultium Charge 360 fleet service."

The company, which identifies itself as the largest public fast charging network for electric vehicles (EVs) in the U.S. and the first of which to be powered 100% by renewable electricity, advised that as part of receiving this designation from GM, it will be engaged in the rollout of new charging and infrastructure solutions specifically targeted for use by GM fleet and BrightDrop customers.

The report stated that worldwide automakers have announced investments in EVs of greater than $300 billion and noted that just last month, GM itself reported on its own plans to spend $35 billion on EV and AV related investment through 2025.

The company explained the partnership with GM will offer customers a seamless charging experience as EVgo's network can offer fleet customers both Level 2 charging at the depot and away-from-base fast charging options.

The firm said in the release that "GM's Ultium Charge 360 fleet service will support EV fleet electrification for rideshare, delivery, municipal, autonomous, government and other market segments and includes a curated, comprehensive offering for fleet customers who are transitioning to electric vehicles."

The company commented that it was selected by GM as a preferred provider due to its innovation and EV infrastructure design and engineering expertise along with its dedication to developing and deploying reliable fleet-focused charging services. Reliability is paramount for vehicle fleets and EVgo pointed out that that it maintains uptime of 98% across thousands of charging stations and that this level of consistent availability allows fleet owners to take advantage of the lower overall costs associated with owning and operating EVs.

The report advised that EVgo will offer GM fleet and BrightDrop customers turnkey fleet solutions via GM's Ultium Charge 360 service. The customers will in turn be provided with custom tailored solutions based on their specific needs to help fleet managers with such things as designing and building dedicated depots, fleet transition to EV planning, infrastructure deployment, provisioning of equipment, maintenance and daily operations and software solutions integration.

EVgo explained that in July 2020, together also with GM, it announced plans to increase EV adoption by installing 2,700 fast chargers in markets throughout the U.S. by year-end 2025. The firm advised that the first of these stations successfully were brought up and running in April of this year in California, Florida and Washington.

General Motors' Lead Architect of EV Infrastructure Alex Keros stated, "As fleets and fleet managers transition to an all-electric future, empowering them with convenient and integrated charging solutions will be critical to expanding this key market segment. GM and EVgo are building on their relationship and will provide solutions for on-the-go to depot charging helping to ensure drivers have access to EVgo's public charging network, making it easy for fleet drivers to charge when and where they need to."

The company's CEO Cathy Zoi commented, "EVgo and GM both know how important it is to electrify fleets—for the economic benefit of fleet managers and for the planet…As a preferred charging solutions provider for GM's new fleet program, we will continue to provide fleet operators with the charging solutions from L2 through 350kW charging they need to go electric at scale."

EVgo is headquartered in Los Angeles, Calif., and stated that it is "the nation's largest public fast charging network for electric vehicles and the first to be powered by 100% renewable energy." The firm noted that it owns and operates greater than 800 fast charging locations in more than 65 metro areas in 34 states that serve over 250,000 customers. The company partners with auto makers, fleet and rideshare operators and large high-traffic property owners such as hotels, malls parking lots and service stations to provide advanced charging technology through its expansive network.

EVgo started the day with a market cap of around $2.8 billion with approximately 264.6 million shares outstanding. EVGO shares opened 3.5% higher today at $10.95 (+$0.37, +3.50%) over yesterday's $10.58 closing price. The stock has traded today between $10.40 to $13.50 per share and closed for trading at $12.08 (+$1.50, +14.18%).


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