LOS ANGELES - EVgo Inc. (NASDAQ: NASDAQ:EVGO), a prominent operator of public fast charging networks for electric vehicles in the United States, has announced plans to incorporate the North American Charging Standard (NACS) connectors into its infrastructure. The company aims to begin the deployment later this year, targeting regions with a significant presence of NACS-compatible vehicles.
The initiative is in response to a shifting competitive environment in the EV charging sector, which EVgo believes presents an opportunity to enhance network utilization and forge new partnerships with site hosts. The company's first-quarter network utilization in 2024 was approximately 19%, a rise from around 9% in the same quarter of the previous year.
EVgo's CEO, Badar Khan, highlighted the potential for increased dialogue with both existing and potential site host partners to expand the network's reach, following the identification of over 100,000 potential new charging stalls. The company's rollout will include high-power 350kW chargers, nearly 40% of its current stalls, equipped with liquid-cooled cable technology to accommodate advanced battery technology and higher charge rates.
The NACS deployment will cater to both Tesla (NASDAQ:TSLA) vehicles and future non-Tesla EVs that support the standard. EVgo's Autocharge+ feature, which facilitates a seamless charging experience without the need for an app, credit card, or RFID card, will be available to these drivers. This feature is already compatible with over 50 vehicle models, including all Tesla models that use Tesla's CCS adapter.
EVgo, which operates over 1,000 fast charging locations across more than 35 states, continues to develop its network and service offerings. The company's growth strategy includes partnerships with automakers, fleet and rideshare operators, retail hosts, and policy leaders to promote the mass adoption of electric vehicles.
InvestingPro Insights
EVgo Inc. (NASDAQ: EVGO) is making strategic moves in the EV charging sector, as reflected by its ambitious plans to deploy the North American Charging Standard (NACS) connectors. As the company gears up for this expansion, InvestingPro data and tips shed light on its financial health and market position, which are crucial for investors tracking EVgo's journey.
According to InvestingPro data, EVgo's market capitalization currently stands at $588.97 million, indicating its size within the industry. The company's revenue has shown impressive growth, with a surge of 164.33% over the last twelve months as of Q1 2024. This rapid increase in sales underscores EVgo's expanding operational scale and market penetration. However, the company's Price / Book ratio is high at 22.94, suggesting that the stock may be valued richly relative to the company’s book value of assets.
An InvestingPro Tip highlights that EVgo is quickly burning through cash, which is a critical consideration for investors as it could impact the company's ability to sustain operations and invest in growth without seeking additional financing. On a positive note, another InvestingPro Tip points out that EVgo holds more cash than debt on its balance sheet, providing some financial flexibility as it embarks on its NACS connector deployment.
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