EVgo Stock Plummets as Biggest Investor Sells 23M Shares

Group 1 - EVgo's largest investor, EVgo Holdings, plans to sell 23 million shares of Class A common stock and offers underwriters a 30-day option to buy an additional 3.45 million shares [1] - EVgo will not receive any proceeds from the sale, which will entirely benefit LS Power, the majority owner of EVgo's voting stock [1] - LS Power's significant holdings allow it to influence key corporate decisions, including director elections and major transactions [1] Group 2 - EVgo recently closed on a $1.25 billion loan guarantee from the Department of Energy to install 7,000 EV chargers over the next five years [2] - The company warned that failing to meet loan conditions could materially and adversely affect its business, leading to a drop in share prices [2] - Despite a 25% loss shortly after the announcement, EVgo's shares have increased by approximately 30% in 2024 [2]