In recent weeks they have been tough for Evo(NASDAQ: EVGO)and by extension, for their shareholders. Shares have now dropped more than 60% since its peak at the end of October, and they touched a minimum multimonta a few days ago.
But the movement is not exactly surprising. President Donald Trump is not as supporter of electric vehicles as many expected Kamala Harris. A few hours after its inauguration, Trump canceled the executive order of former President Joe Biden, who ordered half of all new cars sold in the United States to be zero broadcast vehicles for the 2030. This change in politics clearly works against EV companies, including EVGO, which owns and owns a loading network.
And yet, if Mack Hogan, an assistant publisher of the EV industry news website, is correct, the strong sale of the shares may be a purchase opportunity. When Hogan said shortly after Trump was elected, “if there is something to know about public policy, it is that inertia is difficult to overcome. EVs are 22% of the car market in California, vehicles Electrified are half the market in China and Europe is moving forward.
This is why you may want to participate in an EVGO current as a result of your actions price.
With a market lid of only a billion dollars, Evgo is certainly not Tesla. It’s not even like Tesla. Instead of manufacturing electric vehicles, EVGO manufactures and manages EV public load solutions. At the end of September, it operated around 1,100 rapid loading stations in 40 American states, serving more than 1.2 million account holders.
This is not much yet. Like the silly mold The investigation indicatesFrom January, the United States hosted 69,632 electric vehicle charging stations, collectively supporting more than 195,000 ports. Load point It currently dominates this sand with about 38,000 stations and almost 68,000 loaders. Tesla has just under 7,000 stations, but its stations can serve much more vehicles simultaneously than Chargepoint. No matter how much you cut it, Evgo is a relatively small player in this business.
Don’t let this deter you, though. Despite Trump’s seemingly disinterest in promoting sales of electric vehicles, there are a couple of related reasons that this stock is a purchase now.
First, electric vehicle Purchases continue to increase and are likely to continue to do so for the indefinite future.
You may have heard that EV sales slow down, but what has been reduced is the growth rate, which fell from almost 50% by 2023 and 66% by 2022 to only 7.3% of L. ‘Last year, according to the book Kelley Blue by Cox Automotive.
This slowdown is understandable, however, since we have passed the point where EV production and availability recently increased. The debuts of several new EV models during this previous time helped to strengthen the growth rates.
Last year, EV national sales set a record with an approximate value of 1.3 million units. In addition, general sales of new vehicles of all types only increased by 2.2% to approximately 16 million, according to Wards Intelligence numbers.
So the EVS are going through a header throughout the industry, at least in the United States, where Evo currently does its entire business. This continuous growth supports the COX Automotive forecast, which (despite promotional challenges in politics), electric vehicles will represent 10% of new national vehicles sales by 2025, compared to 7.5% by 2024.
The second reason Evgo could end much better than it seems that the market is that most of its charging stations offer a current quick load (DCFC), which can load a completely electric vehicle up to 80% in 20 minutes At 1 hour, compared to several hours with alternatives. (Most connection hybrid electric vehicles do not work with fast loaders.)
Credence Research forecasts that the domestic EVIR Recharge station market will grow at an annual rate of 34% until 2032, led by the current fast loaders that EVGO prefers to operate.
Don’t read the message badly. Although Evgo could end up crushing the market, there are many speculations here. The EV industry is closer to its beginning than it is, which makes it difficult to predict exactly what it will seem even a few years on the road. Evgo is also unprofitable, and it is not clear when or even if it will change. Ensure -there is room for this risk at your portfolio before stepping on and then managing this risk properly.
Source of data: Stockanalysis.com. Graph by author.
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James Brumley It has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Tesla. The mold’s fool has a Outreach policy.
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