General Motors Co. (GM) and EVgo are collaborating to add more than 2,700 fast chargers in the US over the next five years, in a move set to help boost widespread use of electric vehicles.
Financial terms of the partnership weren’t disclosed. The two companies will add fast charging stations to cities and suburbs, which will be available to customers starting early 2021. The charging stations will be located at grocery stores, retail outlets, entertainment centers and other high-traffic locations providing increased charging access to drivers, who can’t install chargers, or might not have access to workplace charging.
“We are moving quickly to bring new EVs to market that customers will love,” said GM CEO Mary Barra. “We know how important the charging ecosystem is for drivers, one that includes access to convenient and reliable public fast charging.”
Barra added that the EVgo partnership will bolster the public fast charging network available to EV customers ahead of increased market demand and reinforce GM’s commitment to an “all-electric, zero-emissions future”.
With fast charging available where people typically spend 15-30 minutes, customers can charge their vehicles in the time it takes to run their errands. Stations will be located in highly visible areas and most will be able to charge at least four vehicles simultaneously. Additionally, stations will feature new charging technology with 100-350-kilowatt capabilities to meet the needs of an increasingly powerful set of EVs coming to market. The approach builds on EVgo’s existing portfolio of more than 800 station locations across the US.
Earlier this year, GM announced its commitment for all US plants running on renewable energy by 2030 and all global plants running on renewable energy by 2040. Last year, EVgo became the first North American charging company to contract for 100% renewable energy to power its chargers.
Shares in GM have been hit hard and are still down 32% year-to-date with the $32.08 average price target suggesting that analysts expect the stock to advance 29% in the coming year. (See GM stock analysis on TipRanks).
Following GM’s financial results last week, Credit Suisse analyst Dan Levy reiterated a Buy rating on the stock with a $34 price target (37% upside potential), saying that 2Q20 EPS beat in a quarter in which GM North America (GMNA) volume was down more than 60%, which he believes is a key accomplishment.
“It debunks one of the bear concerns on how GM will perform in a downturn, and tells us that GM likely has a better SAAR [seasonally adjusted annualized rate] breakeven level than the 10-11mn it has guided,” Levy wrote in a note to investors. “Nevertheless, in spite of the strong result, GM stock saw no reward.”
The analyst remains positive on GM and believes now is the right time in the cycle to own the stock, saying that “it has a strong 2H ahead, and we believe it merits a multiple re-rating”.
Overall, Wall Street analysts are cautiously optimistic on the stock. The Moderate Buy consensus is based on 10 Buys versus 4 Holds and 1 Sell.
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