What happened

September was a choppy ride for EVgo (EVGO -0.56%), with shares of the electric vehicle charging company ending the month with an 11.2% loss, according to data provided by S&P Global Market Intelligence, even after jumping 12% over the last 10 days of September. Clearly, something happened later in the month that revived investor interest in the EV stock.

So what

EVgo shares were already under considerable pressure ever since the company went public in July via a merger with a special purpose acquisition company. The pressure was partly due to the broader weakness in the EV space and no progress in sight for President Joe Biden's $1 trillion infrastructure bill. The freak market sell-off on Sept. 20 sent the stock even lower, which is why when EVgo announced an important number the very next day, investors saw it as the perfect opportunity to buy some shares.

A person holding an electric car charging nozzle on the road to charge a car.

Image source: Getty Images.

On Sept. 21, EVgo announced that its customer accounts had crossed 300,000 and the company had set up more than 800 fast-charging stations across the U.S. EVgo didn't just expand its footprint over the months but also introduced offerings like high-power chargers and rewards and subscription plans for heavy users. In July, EVgo acquired Recargo, an e-mobility software company that built a PlugShare app for drivers to find and choose public EV charging stations and pay for charges, among other things.

The same day, Credit Suisse Group initiated coverage on EVgo stock with a price target of $11 a share. The bank saw value in the stock, after its precipitous decline, given the company's leadership in the U.S. in building fast chargers that run on 100% renewable energy. EVgo stock is hovering around $8 a share as of this writing. 

Now what

EVgo reported a customer count of 275,000 to close the quarter that ended June 30, so the company is evidently gaining customers. That growth suggests it should be able to hit its full-year revenue guidance of $20 million, up almost 37% year over year.

But it is just starting out, and although it's the first mover in 100% renewable-energy chargers, competitors like ChargePoint Holdings are already racing ahead in the EV charging space. In just the second quarter, ChargePoint generated nearly three times the revenue EVgo is guiding for in the full year. Granted, the EV industry is red-hot right now, and there's a dire need for wider charging infrastructure. But EVgo might have to deliver some monster numbers to convince investors about its potential as competition intensifies.