Why EVgo Stock Crashed 27% Today
EVGo (NASDAQ: EVGO) stock tumbled 27% through 10:05 a.m. ET Tuesday after the operator of charging stations for electric vehicles announced last night that EVgo Holdings, LLC, will sell at least 23 million new shares of common stock (and perhaps as many as 26.5 million) in a secondary offering. (We further learned this morning that the shares will be priced at $5 each).
And here's the most important bit of news: EVgo Holdings and EVgo are not the same thing.
To its credit, EVgo made this clear in a press release, noting, "EVgo Holdings, LLC [is] an affiliate of LS Power Equity Partners IV, L.P.," a shareholder of EVgo proper -- so for clarity, from here on I'll be referring to EVgo Holdings as "the insider."
Source Fool.com
