EV Charging Stock EVgo Sees Revenue Soar, Uplifted By Project Tied To Warren Buffett| Investor’s Business Daily

EVgo (EVgo) beat earnings estimates Thursday as more customers used its network to charge electric vehicles. EVgo stock soared off a low base.

The company also reported a surge in revenue tied to an EV charging project with General Motors (GM) and Pilot Flying J, a Berkshire Hathaway (BRKB) company.

X

Among China EV makers, Li Auto (LI) hit a fresh high. Nio (NIO) and Xpeng (XPEV) rebounded. All three startups disclosed momentum in July EV sales earlier this week.

EVgo Stock

Late Wednesday, Los Angeles-based EVgo posted $50.6 million in revenue for the second quarter, beating estimates. A loss of 8 cents per share was also less than expected.

Year over year, revenue surged 457%, the earnings release showed. Charging demand drove gains along with the company’s white-label “eXtend” unit for businesses, which accounted for 66% of total revenue.

During the quarter, EVgo continued building out its eXtend project with GM and Pilot Flying J, the truck stop operator that is majority owned by Warren Buffett’s Berkshire Hathaway. EVgo expects the first site to start operating this quarter, it said Thursday.

Last year, the three companies partnered to build out a nationwide, coast-to-coast fast-charging network for electric vehicles. Berkshire Hathaway also holds a hefty stake in GM shares.

During Q2, EVgo and GM also opened their 1,000th charging stall.

In addition, EVgo on Thursday announced a CEO succession plan.

EVgo stock soared nearly 22% to 5.16 in Thursday’s stock market action. EVgo stock tumbled in the past year and remains well below the August 2022 high of 12.65.

Li Auto Stock

China’s Li Auto extended its rally to a fifth day with earnings due early Tuesday.

The maker of premium hybrid-electric vehicles is expected to deliver a strong second quarter on the back of robust EV sales, which exceeded the high end of its guidance for the period. A clear leader among China startups this year, Li earns a spot on the IBD 50 list of top growth stocks.

Outlook may matter more than Q2 performance. Analysts at Deutsche Bank expect Li to guide to Q3 deliveries of around 100,000 units on strong demand for the L7 and L8 SUVs. That would be up from 86,533 units in Q2. Investors will also watch for updates on a price war in China’s EV market this year.

Shares of the China EV stock popped 4.8% to 46.54 Thursday. Li stock made another new 52-week high intraday after more than doubling year to date. Shares are up 130% since Dec. 31.

Nio stock surged 6.2% Thursday, while XPeng stock gained 3.8%.

Shares of Nio and XPeng lagged Li stock but are starting to see an uplift. Both laggard EV stocks have more than doubled from their 52-week lows as anticipation builds for a stronger second half of 2023 on the back of new models.

Xpeng reports Aug. 18. Nio has not announced a date for earnings.

YOU MAY ALSO LIKE:

These Are The 5 Best Stocks To Buy And Watch Now

Stocks To Watch: Top-Rated IPOs, Big Caps And Growth Stocks

Find The Latest Stocks Hitting Buy Zones With MarketSmith

Why This IBD Tool Simplifies The Search For Top Stocks

Looking For The Next Big Stock Market Winners? Start With These 3 Steps