EVgo's Stock Struggles Amid Rising Competition and Interest Rates

EVgo's stock remains under pressure due to competition and high interest rates. Despite achieving significant revenue growth, its adjusted EBITDA fell short, raising concerns for investors.

Date: 28-01-2025

AI Rating: 5

**Earnings Performance**: EVgo's adjusted EBITDA significantly missed initial expectations, reporting a negative $59 million against its goal of achieving positive adjusted EBITDA by 2023.

**Revenue Growth**: The company's revenue demonstrates strong year-over-year growth, increasing from $22 million in 2021 to $161 million in 2023. In Q3 2023 alone, revenue year-over-year growth was reported at 234%, although expectations for future quarters forecast a decline, projecting only 32% growth for Q2 2024.

**Profit Margins**: An adjusted gross margin remained stable around 26.4% to 26.6% for Q4 2023 through Q3 2024, but adjusted EBITDA margins have shown improvement—moving from (40.6%) in Q3 2023 to an anticipated (13.2%) by Q3 2024.

While the figures indicate potential, investor sentiment is tempered by increased competition in the EV space and rising operational costs associated with interest rates. Additionally, ongoing dilution due to increased shares and insider selling may pressure stock performance.

Stocks: EVGO TSLA CHPT GM