EVGO Stock Pops as EVgo Strikes New Deal in Ohio

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Shares of EVgo (NASDAQ:EVGO) stock are trending on Monday, with EVGO stock is up more than 8% as of this writing. At today’s high, shares were up about 16%, but bulls remain optimistic this afternoon.

Already, EVGO stock has generated its highest trading volume since June 23 and there are still several more hours to go in the session. What has shares charging higher?

Well, EVgo is rallying after the firm reached a deal with Ohio’s Department of Transportation. The agreement includes funding to deploy the company’s fast charging stations on specific interstate locations within Ohio.

From the press release:

“The company and its eXtend partners were selected by DriveOhio, a division of the Ohio Department of Transportation, for proposed awards of $13.8M in funding to deploy 20 fast charging stations. Fourteen of the 20 locations are owned by EVgo eXtend partner Pilot Company, and all EVgo and EVgo eXtend stations deployed through these awards will feature 350kW high-power fast charging.”

EVgo also noted that, “Ohio is one of the first states to announce awards from the NEVI program” and that “over the next five years, DriveOhio will release over $100 million in NEVI funds to further support EV charging infrastructure deployment across the state.”

Is a Turnaround Coming for EVGO Stock?

It hasn’t been an easy stretch for EVGO stock. In fact, it has been a tough go for many names within the electric vehicle (EV) charging space. EV stocks in general have struggled, too.

While Tesla (NASDAQ:TSLA), Ford (NYSE:F) and other leading automakers have fared pretty well this year — although they sport a huge difference in performance (Tesla is up 165% so far in 2023 while Ford is up about 21%) — most EV-related stocks have been under pressure.

That includes smaller EV makers like Fisker (NYSE:FSR) and Nikola (NASDAQ:NKLA) as well as charging stocks like ChargePoint (NYSE:CHPT), Blink Charging (NASDAQ:BLNK) and EVgo.

For what it’s worth, EVGO stock is the best-performing stock of that charging trio. Shares are up almost 7% from the start of 2023. Meanwhile, ChargePoint and Blink are down about 5% and 38% year-to-date (YTD), respectively.

One issue for EVgo and other chargers? Tesla.

The automaker has a massive footprint in the EV charging space via its Supercharger Network. Over the last few months, Tesla has been busy inking charging deals with Ford, General Motors (NYSE:GM) and other large automakers.

Still, EVGO stock bulls are optimistic that the company can continue to ink deals similar to what we’re seeing today. If it can do so, bulls may continue to bid up shares.

On the date of publication, Bret Kenwell did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

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