EVgo Stock Drops as Largest Investor Offloads 23 Million Shares

EVgo Stock Drops as Largest Investor Offloads 23 Million Shares

EVgo (EVGO) shares tumbled after the electric vehicle (EV) charging station operator revealed that its largest investor, EVgo Holdings, an affiliate of LS Power Equity Partners, plans to sell 23 million shares of Class A common stock. Underwriters have also been given a 30-day option to purchase an additional 3.45 million shares.

EVgo clarified that it will not issue any shares or receive proceeds from this sale, as all funds will go to LS Power. In a regulatory filing, the company noted that LS Power’s significant ownership grants it 66.5% voting power, allowing substantial influence over EVgo's decisions, including director elections and major corporate actions.

The stock's decline comes despite EVgo securing a $1.25 billion loan guarantee from the Department of Energy last week to install 7,000 EV chargers nationwide over the next five years. However, the company cautioned that failure to meet loan conditions could “materially and adversely” affect its operations.

Despite a 25% plunge in early trading Tuesday, EVgo shares remain up 30% in 2024.