This article is backwards. EVGO is an electric vehicle charging company that we are putting on our radar. Feel free to click away now and go back to your coffee, or read on for an interesting tale on why this caught our attention. Usually we try to pull you through the story to get to the stock we are watching but why be normal, right?
Recently, seven automakers announced they are creating a joint venture to build a charging network to rival Tesla. This is far from innovative and much more like survival. They have been riding Tesla’s coat tails through this whole EV shift. EVGO is an existing charging network and, while not the biggest player, it is established. It flashed a couple solid signals that make it look attractive.
It has been in a Bullish MACD Crossover pattern for a while and just broke above the 50 day moving average. This are both solid signs that is has climbing power. Another factor that makes this attractive is that all ships rise with the tide. As more interest is focused on charging networks it sets the stage for more investment into this space, healthy competition, and potential acquisition and consolidation.
This isn’t new for automakers (GM was a leader in the auto finance world when they saw it helped car sales) and it isn’t new in business. Heading into the 20th century, breweries realized they could expand business if there were more bars to sell their beer. They started opening their own bars to boost sales. The Shlitz Brewery is legendary for the bars they opened in Chicago. (more info here) and one of my favorites is Schubas. Many of these buildings are now landmarks and show how effective businesses can be at out of the box approaches to growing the market.
I wonder if when wireless charging becomes a thing if any of the EVGO stations will be landmarks or just a abandoned phonebooth?
Keep learning and trade wisely,
Market Wealth Daily