Where Will EVgo Stock Be in 10 Years?

Core Insights - The electric vehicle (EV) charging network, particularly EVgo, is experiencing significant growth ambitions despite a recent stall in overall electric vehicle sales in the United States [2][3]. Company Overview - EVgo operates one of the largest networks of charging stations in the U.S., with over 1,100 locations and 3,680 charging ports, aiming to capitalize on the growth of electric vehicles [4]. - Unlike Tesla's integrated network, EVgo provides charging solutions for non-Tesla electric vehicle owners, positioning itself as a necessary alternative to home charging [5]. Market Dynamics - In Q3 2024, EVgo's charging throughput grew by 111%, indicating rapid growth, particularly as non-Tesla electric vehicle sales increased by 18% year-over-year to 178,000 units [6]. - EVgo's revenue surged by 92% year-over-year to $62.5 million, with trailing-12-month revenue increasing by 1,530$2 billion or more in 10 years, assuming a continued annual growth rate of 23%, supported by federal financial backing [10]. Profitability Outlook - While revenue growth appears promising, profitability remains a concern, with EVgo's gross margin recently improving to around 10% but still considered thin [9]. - Assuming gross margins can improve to 15% over time, a net margin of 5% on projected revenues could yield $100 million in annual net income, suggesting a favorable valuation for EVgo's stock in the long term [11].