EVgo stock price analysis as short interest rises to 20%

EVgo stock price has moved sideways since May this year as investors reacted to Donald Trump’s Big Beautiful Bill, which he signed into law recently. It has remained at $3.95 in the past few days, up by over 80% from its lowest level this year. This article explains whether it is a buy as short interest hits 20%.

EVgo stock pressured by rising short interest

EVgo is one of the biggest players in the electric vehicle charging industry in the United States with over 1,100 charging stations across the United States. 

It deploys its DC fast charging stations, allowing individuals and fleets to charge their vehicles easily. EVgo has also partnered with OEMs like Ford and General Motors.

The company’s business has a large total addressable market as the number of electric vehicles being sold in the United States is rising. Data show that there were over 4.5 million battery electric vehicles in the US in December last year, a trend that will continue growing.

EVgo solves the biggest challenge that many Americans have with electric vehicles: range anxiety. It does this by installing stalls across the country in strategic locations.

EVgo also runs the eXtend solution where it provides the hardware, design, and construction solutions for EV charging locations.

These investments have helped to make EVgo one of the fastest-growing companies in the United States, with its annual revenue rising from just $14.6 million in 2020 to $308 million in the trailing twelve months.

However, there are signs that investors have continued to short the company, expecting its stock to continue falling in the coming months. The short interest has jumped to over 20%, making it one of the most shorted companies in the US.

One of the reasons for this is that Donald Trump has a different philosophy than Joe Biden when it comes to electric vehicles. His Big Beautiful Bill removed the popular $7,500 EV subsidy that many Americans use.

The bill also ended the Section 30C Alternative Fuel Infrastructure Tax Credit, which EV charging companies used to boost their investments. The program will end in June next year, opening it to higher costs.

Most notably, EVgo is now paying more for its imports because of Donald Trump’s tariffs on goods from all countries. Tariffs, which are taxes, are making it more expensive for the company to operate.

Some of the funding that Joe Biden approved to accelerate the EV charging infrastructure is now under review and may be canceled.

Strong revenue growth 

The most recent results showed that EVgo’s business was still seeing strong revenue growth despite the major headwinds.

Its revenue rose by 47% YoY in the second quarter to $98 million. Most of this revenue came from the charging network as its throughput soared to 88 gigawatt-hours.

More customers are choosing EVgo for their charging solutions, with the number of customer additions rising by over 122,000 during the quarter.

Analysts are optimistic that EVgo’s business will continue growing in the coming months. The average estimate among analysts is that its revenue for the current quarter will be $91.2 million, up by 35% from a year earlier. The annual revenue is expected to be $365 million, a 42% YoY increase followed by $463 million next year.

EVgo stock price technical analysis 

The daily timeframe chart shows that the EVGO stock price has remained in a tight range in the past few weeks. It has formed a symmetrical triangle pattern whose two lines are about to converge.

The stock has moved above the 50-day and 100-day Exponential Moving Averages, while the Relative Strength Index is above the neutral point at 50.

Therefore, the stock will likely continue rising as bulls target the next key resistance level at $4.80, its highest level on June 17. A move above that level will point to more gains, potentially to the next resistance level at $5. A drop below the support at $3.45 will invalidate the bullish outlook.

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