Electric vehicle fast-charging network company EVgo (NASDAQ:EVGO) had a rough first full month of trading as a public company. The company went public through a merger with a special purpose acquisition company (SPAC) in early July, and shares have dropped almost 40% since then. In August alone, EVgo shares were down 22.7%, according to data from S&P Global Market Intelligence.
Several things explain the stock’s performance since its public debut, and particularly in August. The poor performance of other electric vehicle sector companies that have gone public through SPACs reinforced negative sentiment. But EVgo also didn’t help itself when it registered to issue potential new shares through warrants just one month after it started trading.