LOS ANGELES – EVgo Inc. (NASDAQ: NASDAQ:), a key player in the United States’ public fast charging network for electric vehicles (EVs), has announced a memorandum of understanding (MOU) with Delta Electronics, Inc., a global leader in power management and smart green solutions. The collaboration aims to create a next-generation EV charging architecture expected to enhance the customer experience, improve charger reliability, and drive cost efficiencies.
The partnership will build upon the companies’ longstanding relationship to develop advanced fast chargers focusing on user experience, incorporating features like contactless payment, ultra high-power 400kW dispensers, and extended cable length for ease of use across various EV models. The goal is to support EVgo’s commitment to accommodating all EV drivers.
Dennis Kish, President of EVgo, emphasized the importance of evolving their charging solutions to increase consumer confidence in public EV infrastructure and encourage wider adoption of electric vehicles. Austin Tseng, President of Delta Electronics (Americas), noted Delta’s expertise in high-efficiency power electronics will be critical to enhancing the EV charging experience and advancing energy conservation.
The new charging technology will allow for dynamic power sharing across up to six charging stalls simultaneously, optimizing energy efficiency and power distribution. This capability is designed to align with anticipated battery advancements and meet the diverse needs of EVgo’s station configurations.
EVgo aims to complete the final design and interoperability testing of the new chargers at its Innovation Lab, with a deployment target set for the second half of 2026. The company also plans to improve its charger firmware and software, enabling more detailed error codes and a flexible interface to enhance maintenance and user experience.
The co-development is part of EVgo’s broader ReNew program, which seeks to improve the customer experience through new diagnostic tools, payment process enhancements, and investments in upcoming charging infrastructure.
This initiative is expected to provide faster, more efficient charging sessions tailored to each vehicle’s charging profile, reduce energy consumption and costs, and contribute to EVgo’s aim of lowering capital expenses per stall by 30% while increasing peak power delivery.
The information in this article is based on a press release statement from EVgo.
In other recent news, EVgo Inc. has seen several significant developments. The company has secured a conditional commitment for a $1.05 billion loan guarantee from the U.S. Department of Energy (DOE). This financing is expected to bolster EVgo’s infrastructure expansion, potentially enabling the construction of approximately 7,500 new DC fast charging stalls by 2030.
EVgo also reported a substantial 32% year-over-year revenue increase, surpassing $66 million. The company has appointed Paul Dobson as its new Chief Financial Officer, a move that is expected to guide EVgo towards profitability. Furthermore, in a partnership with General Motors (NYSE:), EVgo plans to install 400 new fast charging stalls across the United States.
Several analysts from firms including UBS, RBC Capital Markets, TD Cowen, Roth/MKM, Stifel, and Cantor Fitzgerald have maintained positive outlooks for EVgo. UBS upgraded EVgo from a Neutral to a Buy rating, accompanied by a substantial increase in the price target, which now stands at $8.50. Similarly, RBC Capital Markets doubled the company’s price target from $4.00 to $8.00, and TD Cowen upgraded EVgo’s stock to a Buy rating and raised the price target to $7.00.
In addition, EVgo has been enhancing its fast charging network through the EVgo ReNew program, leading to a 115% increase in the number of charging stalls and a growth of over 80% in locations that can serve at least six vehicles. The company is also developing a next-generation charging architecture expected to deploy in the second half of 2026. These developments underscore EVgo’s efforts to maintain its position in the competitive EV charging landscape.
InvestingPro Insights
EVgo’s partnership with Delta Electronics aligns well with its growth trajectory and market position. According to InvestingPro data, EVgo’s revenue growth stands at an impressive 82.01% for the last twelve months as of Q2 2024, with quarterly revenue growth at 31.78%. This robust growth underscores the company’s expanding footprint in the EV charging market and suggests that strategic collaborations like the one with Delta could further accelerate this trend.
An InvestingPro Tip highlights that analysts anticipate sales growth in the current year, which is consistent with EVgo’s efforts to enhance its charging technology and expand its network. The company’s focus on improving user experience and charger reliability through this partnership could contribute to sustaining this growth momentum.
Another relevant InvestingPro Tip indicates that EVgo holds more cash than debt on its balance sheet. This strong financial position could provide the company with the flexibility to invest in innovative projects like the next-generation charging architecture without overly straining its resources.
It’s worth noting that EVgo’s stock has shown significant volatility, with a 239.42% price total return over the past six months. This volatility, combined with the company’s high revenue valuation multiple, suggests that investors are pricing in high expectations for future growth and market expansion.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for EVgo, providing a deeper understanding of the company’s financial health and market position.
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