Why EVgo Stock Is Surging Today

Shares of electric vehicle (EV) charging network EVgo (NASDAQ: EVGO) were surging again on Wednesday, a day after the company's upbeat third-quarter earnings report.

As of 1:45 p.m. ET, EVgo's shares were up about 8.5% from Tuesday's closing price.

EVgo's business is booming despite Tesla's open charging network

EVgo reported its third-quarter results before U.S. markets opened on Tuesday. The report was a good one: While its loss of $0.11 per share was slightly wider than Wall Street had expected, its revenue of $67.5 million exceeded expectations -- and its total network throughput, a measure of utilization, was up 111% from the same period in 2023.

That's a bullish number, as is this one: EVgo added more than 147,000 new customer accounts in the third quarter, ending the period with more than 1.2 million -- up 57% year over year.

The takeaway: More and more EV drivers are finding their way to EVgo's charging stalls, even after giant Tesla's decision to open its proprietary charging network to other brands.

EVgo boosted guidance and said a key milestone is in sight

EVgo also raised its guidance for full-year revenue slightly, to a range of between $250 million and $265 million, and said that it expects to reach breakeven on an adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) basis sometime next year -- a key milestone.

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John Rosevear has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.