EVGO stock price has displayed bullish signs since the beginning of February. Evgo Inc. operates EV charging sites powered by renewable electricity. Several charging equipment manufacturers, charging station operators in the US, according to a report by Reuters, are preparing for a slowdown in production and deployment. The hindrance is attributed to the compliance with terms of “Made in America” – a $7.5 billion federal program, aimed at accelerating the domestic industry.
EV Charger Industry with “Made in America”
“Made in America” was laid out by the White House last month as part of President Biden’s effort to build an electric-friendly highway system by 2030. The program is aimed at contributing to the country’s climate goals, encouraging domestic production and creating more local jobs.
EVgo has 850 fast-charging stations across the US. It imports chargers from a South Korea based manufacturer – SK Signet Inc.. The cost of transferring manufacturing infrastructure is high. Charging equipment manufacturers and station operators are now compelled to build in America. EVgo is unsure whether the government will defer on certain requirements of the program. SK Signet is planning to open a factory that can produce 10,000 DC fast-charging units per year factory till 2026, per Reuters.
The program requires the assembly of chargers locally and charging station enclosures to be made locally. Initial focus of the program will be on fast-charging infra for highways following which slow (overnight charging) stations will be considered.
The dearth of fast-charging stations has been highlighted by officials and firms. However, the enforcement of the program’s requirements could slow the production process driving up costs.
EVGO Stock Price Analysis
EVGO stock price forms a falling parallel channel with the current price trying to break out of the pattern. The volume shows both buyers and sellers participating in equal numbers. The current price (press time) of $5.71 retraces from the support near $5.25. If the breakout is successful, EVGO stock price can reach higher levels. In the projected rally, the price can face resistance near $6.40, and consolidate temporarily.
If the primary resistance is breached, EVGO stock price can reach near $7.70, trying to mark a new high for 2023. The RSI moves closer to the half line and shows sellers losing grip. The MACD nears a convergence zone and could soon end the selling record. The signals show approaching bulls, despite the slowing production.
Conclusion
EVGO stock signal bulls to take over the market soon, despite slowdown in production. The EV charger maker may witness some difficulties due to the federal program of “Make in America” which is aimed to support the industry by promoting indigenous production. The holders of EVGO stock can rely on the support near $5.25 and wait for the breakout.
Technical levels
Support levels: $5.25 and $3.80
Resistance levels: $6.40 and $7.70
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/03/23/evgo-stock-price-bullish-amid-rising-charging-infra-cost-woes/