EVgo Stock Gains on Suburu Partnership, But Will Buyers Stick Around?

Initially, EV charging companies were met with the same degree of anticipation that has encouraged the growth of EV’s. However, the largest of the charging stocks, such as Chargepoint, Blink, and EVgo, have all been slowly depreciating as the companies struggle to find financial foundations. EVgo (NASDAQ: EVGO) is down 60% year-on-year, with brief stock spikes giving way to ever-increasing selling activity. Bulls are on the edge of their seats with this one; a lack of profitability is always unnerving, albeit the company still being in its rapid-growth stage. 

EVgo seems to be making headlines more and more consistently. It's hard not to respect such ambitious expansion at a time when the current EV demographic might pave a difficult road to short-term profitability. Today, the company has announced its latest partnership – with Subaru of America. EVGO stock is sitting on a premarket gain of 0.86%, building on yesterday's gain of just over 3%. 

Read Also: Best EV Stocks To Buy Right Now

The news comes as Suburu joins the EV brigade in a cultural mission towards zero-emission vehicles, and to ensure future sustainability for the company. Drivers of the new 2023 Solterra EV SUV will have complete access to EVgo’s industry-leading network of 800 fast-charging points and 1,200+ L2 charging stalls across the US, as well as its 24/7 driver support.

What does this mean for investors? It’s still looking like a long game. The company hopes to install roughly 16,000 stalls by 2027; meaning a lot more spending – and for the time being – more losses. EVgo can only really become profitable when there are enough EV drivers on the road. Until then, bears might frown upon the company’s rapid expansion, and hence we might well see the price continue to be driven lower. 

On the other side, the more EVgo dips, the more attractive the stock looks as a long-term pick. Sure, the company has a long road ahead of it, but as soon as EV’s inevitably become homogenous, EVgo will have concrete foundations…and you might regret the time you didn’t buy the stock at its current price.