Why Shares of EVgo Nearly Doubled This Week

EVgo (NASDAQ: EVGO) stock is set to end the week up 94% from last week's close, according to data from S&P Global Market Intelligence. Its gains came mostly in response to the passage of President Biden's major infrastructure bill, which provides funds to support (among many other things) the expansion of the nation's electric vehicle infrastructure.

Many stocks jumped following congressional approval of the bipartisan legislation in question, which budgets $1 trillion for an array of projects. But the $7.5 billion earmarked to build a countrywide network of EV chargers in the U.S. will directly benefit electric vehicle charging station maker EVgo. Moreover, given the other ways the infrastructure deal supports the expanded use of electric vehicles, the value of the potential indirect demand it will help generate for EV charging stations goes well beyond the federal government's planned spending on them.

Image source: Getty Images.

Source Fool.com