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General Motors (GM), EVgo, Pilot Co. Tie Up for EV Charging in US

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General Motors (GM - Free Report) recently joined forces with Pilot Co., owner of the Pilot and Flying J highway travel centers, and EVgo (EVGO - Free Report) , an EV charging network, to build a network of electric vehicle (EV) fast chargers.

The deal states that the companies will install a total of 2,000 fast chargers at 500 of Pilot’s locations along American highways, at intervals of around 50 miles. The companies intend to have a significant portion of those chargers installed and in operation by the end of 2023.

The chargers will be installed, operated and maintained by EVgo and include high-power fast chargers and charging stalls designed to accommodate EVs that are towing trailers. The chargers will be accessible to all EVs compatible with DC fast charging. GM has also said that its customers will be entitled to benefits such as discounts, exclusive reservations and access to real-time availability and route planning through the automaker’s apps.

The contract is expected to benefit from grants made available by the U.S. government. It is part of a broader $750 million effort by GM to manufacture an accessible fast-charging network as it prepares to launch a series of new EVs over the next couple of years.

The partnership will help expedite EV sales by filling in gaps in the charging infrastructure. Access to charging stations, to date, is the primary concern for American drivers over buying or leasing an EV.

GM and EVgo had earlier laid out a plan to install an additional 3,250 fast chargers in and around U.S. cities and suburbs by the end of 2025. Moreover, GM is working with its dealers in the United States and Canada to install up to 40,000 chargers in the dealers’ communities to uplift neglected rural and urban areas.

GM’s aim for an all-electric, zero-emissions future will get a new lease of life with this partnership.

The stock has lost 44.5% over the past year compared with its industry’s 12% decline.

Zacks Investment Research
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Zacks Rank & Key Picks

GM carries a Zacks Rank #3 (Hold), currently.

Better-ranked players in the auto space include BorgWarner (BWA - Free Report) and Standard Motor Products (SMP - Free Report) , each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BorgWarner has an expected earnings growth rate of 23% for 2023. The Zacks Consensus Estimate for current-year earnings has been revised 0.3% upward in the past 30 days.

BorgWarner’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. BWA pulled off a trailing four-quarter earnings surprise of 33.1%, on average. The stock has declined 30.2% over the past year.

Standard Motor has an expected earnings growth rate of 5.2% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.

Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has risen 3.4% over the past year.

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