The company isn't facing too much demand, yet the DC fast-charger leader has to build more stalls in order to ensure the eventual demand arrives at a future date. Set another way, EVgo existing charger base can handle and absorb the throughput arising from expected near-term growth in EV sales, and we're expecting charging revenue to increase accordingly, and given that we're in the business of skating to where the pack is going to be, we're continuing to build charging stations in advance of the dozens of EV models hitting the market in 2023, '24 and beyond.ĮVgo has to buildout charging stations now despite already having plenty of spare capacity on the existing network. The biggest problem with investing in the EV charging station space was this statement from the CEO on the Q3'21 earnings call:ĮVgo network performed well, delivering hundreds of thousands of charging sessions across 35 states and 68 metropolitan areas with plenty of capacity on our current network footprint to accommodate expected traffic from 2022 EV sales. My investment thesis remains Bearish on the space and this stock due to a large disconnect between the public market valuations and the actual business models. EVgo ( NASDAQ: EVGO) recently traded back below the $10 SPAC price due to lukewarm results. The EV charging station stocks have come back to earth after the economics of existing stations haven't impressed the market, typically due to low utilization rates. Sundry Photography/iStock Editorial via Getty Images
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