EVGO – A Broken “ESG” Company Connected to Jeffrey Epstein – Fuzzy Panda Research
EVGO stock analysis reveals 25.5% charger failure rate, -381% margins, Jeffrey Epstein connections, and massive overvaluation. Short-sellers expose critical EV charging infrastructure risks and corporate governance problems.
Fuzzy Panda Research has released a scathing report on EVGO, alleging the EV charging company is significantly overvalued while suffering from deteriorating financials, widespread charger malfunctions, and questionable connections to controversial figures including Jeffrey Epstein.
Stock info:
- Ticker: EVGO (NASDAQ)
- Position: Fuzzy Panda Research is short EVGO and stands to benefit from price declines
Why it matters:
- UC Berkeley study found 25.5% of EVGO's chargers are non-functional, with proprietary surveys confirming ~15% of chargers offline or broken
- Charger utilization has declined 21% from 2019 to 2021, contradicting management's growth projections
- Operating margins have deteriorated from -199% in 2019 to -381% in Q1 2022, with cash burn of approximately $43.8 million per quarter
- EVGO's key patent application for "rapidly deployable charging stations" was rejected by USPTO in May 2022
- Company spends minimal amounts on R&D ($2 million in FY2021) compared to competitors like ChargePoint ($220 million)
- Controlling shareholder LS Power (74% ownership) has extracted over $14 million in fees and bonuses in just 18 months
- Impending lock-up expiration on July 2, 2022 could release 76.2% of outstanding shares for potential sale
- Troubling connections exist between LS Power, Luminus Management, and Jeffrey Epstein through documented relationships with the Barrett family
Catch up quick:
- EVGO was purchased by LS Power for approximately $134 million but IPO'd via SPAC at a $2.6 billion valuation
- LS Power's cost basis is estimated at just $0.70 per share while SPAC founders acquired shares at roughly $0.0043
- Company relies entirely on third-party vendors for charging technology with no proprietary hardware
- EVGO has a history of asset write-downs, including a 75% write-down when sold by NRG and a 30% write-down on the Plugshare acquisition
- Luminus Management, described as LS Power's "affiliate fund," has connections to Jeffrey Epstein through Jonathan Barrett and family members who appear in Epstein's "black book"
- Investigation found Luminus Management's listed office addresses to be empty floors with unreturned calls
- EVGO faces significant competitive pressure from Electrify America, which offers extensive free charging incentives to automakers
FAQs:
What is the main thesis of Fuzzy Panda's report on EVGO?
Fuzzy Panda argues that EVGO is significantly overvalued due to operational failures (25.5% of chargers malfunctioning), deteriorating financial metrics (worsening negative margins), minimal technological innovation, questionable corporate governance, and troubling connections to Jeffrey Epstein through its controlling shareholder.
How reliable are EVGO's charging stations according to the report?
According to a UC Berkeley study cited in the report, 25.5% of EVGO's chargers are non-functional. Fuzzy Panda's proprietary survey of 1,745 chargers found approximately 15% offline or broken, with significant consumer dissatisfaction documented through social media complaints.
What are EVGO's financial performance trends?
The report highlights severely negative operating margins that have worsened from -199% in 2019 to -351% in Q1 2022 and -381% by the report's publication. Charger throughput has declined 21% since 2019, and the company is burning approximately $43.8 million in cash per quarter.
Who controls EVGO and what is their cost basis?
LS Power controls 74% of EVGO's shares with an estimated cost basis of approximately $0.70 per share. LS Power purchased EVGO for around $134 million before taking it public via SPAC at a $2.6 billion valuation. SPAC founders acquired shares at approximately $0.0043 per share.
What is the significance of the July 2, 2022 date mentioned in the report?
July 2, 2022 marks the expiration of the lock-up period for LS Power and other insider shareholders, potentially allowing the sale of over 201.5 million shares (76.2% of shares outstanding), which could create significant selling pressure on the stock.
What connections to Jeffrey Epstein does the report allege?
The report documents connections between LS Power's "affiliate fund" Luminus Management, run by Jonathan Barrett (described as an Epstein protégé), and Jeffrey Epstein. Barrett family members appear in Epstein's "black book," and connections are supported through bankruptcy filings, Panama Papers, SEC documents, and other sources.
How does EVGO compare to its competitors in terms of R&D investment?
EVGO spent only $2 million on R&D in FY2021, compared to ChargePoint's approximately $220 million over a similar period. The report argues this minimal investment hampers innovation and competitive positioning, especially given the rejection of EVGO's key patent application.
What evidence does the report provide about EVGO's technological capabilities?
The report notes that EVGO relies entirely on third-party vendors for charging technology, had its key patent application rejected by the USPTO in May 2022, and invests minimally in R&D compared to competitors. This suggests limited proprietary technology and potential future competitive disadvantages.
Disclaimer
This summary is based on a report by Fuzzy Panda Research. For the full, detailed analysis, please refer to the original source material: https://fuzzypandaresearch.com/evgo/
ShortReport.fyi is not the author or originator of the content provided in this publication. We act solely as a distributor of the content and do not endorse, verify, or take responsibility for the accuracy, completeness, or reliability of the information presented. Each author retains full ownership and responsibility for their respective content, including any opinions, projections, or analyses expressed therein.
This publication is for informational purposes only and should not be construed as legal, business, investment, or tax advice. Readers are advised to consult the original source material and seek guidance from qualified professionals before making any decisions based on the information contained herein.
ShortReport.fyi disclaims all liability for any loss or damage arising from reliance on the content provided by third parties. The views expressed in these materials are solely those of the respective authors and do not necessarily reflect the views or opinions of ShortReport.fyi.