EVgo Names Keefer Lehner Finance Chief as Paul Dobson Departs

What Happened?

Shares of electric vehicle charging company EVgo jumped 2.7% in the morning session after the company announced that its Autocharge+ service surpassed a major milestone of five million charging sessions. The electric vehicle charging network also reported a sixfold increase in enrollment for the service since 2023, with more than 300,000 customers now signed up. The Autocharge+ feature, which is compatible with nearly 80 different EV models, allows drivers to start a charging session simply by plugging in their vehicle after a one-time enrollment. This significant growth in user adoption and service usage pointed to strong operational progress for the company.

After the initial pop the shares cooled down to $3.20, up 2.4% from previous close.

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What Is The Market Telling Us

EVgo’s shares are extremely volatile and have had 44 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 13 days ago when the stock gained 3.3% on the news that strong results from chipmaker Nvidia eased lingering concerns about a potential bubble, especially in the tech sector. 

The tech giant delivered another blockbuster earnings report, with sales, profits, and guidance exceeding Wall Street expectations. CEO Jensen Huang let the data do the talking as he acknowledged the growing sentiment about an AI bubble, while affirming that sales for Nvidia's current-generation GPU, called Blackwell (mostly used for AI applications), are "off the charts." A stronger-than-expected September jobs report from the Bureau of Labor Statistics reinforced this bullish sentiment. Nonfarm payrolls rose by 119,000, easily surpassing the consensus estimates of 50,000. While the unemployment rate ticked up to 4.4% and wage growth slowed slightly, the data suggest the U.S. economy remains on a firm footing.While this resilience made some investors unsure of the Fed's December rate decision, the market welcomed the news, rallying on the strength of a solid economy and a booming tech sector.

EVgo is down 23.7% since the beginning of the year, and at $3.20 per share, it is trading 51.7% below its 52-week high of $6.61 from December 2024. Investors who bought $1,000 worth of EVgo’s shares 5 years ago would now be looking at an investment worth $322.40.