As the U.S. infrastructure bill passed last year, investors’ interest in companies like charging-station manufacturer EVgo (NASDAQ:EVGO) surged. Since the bill included funding for the build-out of electric vehicle (EV) charging networks, a long position in EVGO stock seemed like a sure winner.

Yet, there’s no such thing as a sure winner in the stock market. From mid-November onwards, EVgo was a no-go as the share price was literally cut in half.

As we’ll see, EVGO stock reached a critical resistance level before tumbling. Resistance levels are meant to be broken, though, especially when a stock represents a high-conviction business in a growing market sector.

The data will show that EVgo’s business model, which involves both EV chargers and related apps, has been highly successful. Hence, if there’s a mismatch between the share price and the company’s true value, then contrarian investors should be ready to take advantage of this opportunity.

A Closer Look at EVGO Stock

Going back to the beginning, EVGO stock debuted on July 2, 2021, opening its first trading session at $15.

Oddly enough, the stock wasn’t a big hit on Wall Street at first. In fact, the share price sank to $7 and change in September.

As the U.S. infrastructure bill garnered attention in the news headlines, however, EVGO stock staged a swift recovery. In November, the stock touched the $20 level, though this rally was short-lived.

Consequently, traders had another chance to load up below $10 in early January 2022. This leaves open the possibility of a share-price doubling – no guarantees, of course, but the stock has reached $20 before and it could happen again soon.

An App-Enhanced Revolution

In order to get Millennials and Zoomers on board with the vehicle electrification movement, it’s necessary to use smartphone technology.

For young people, that means providing downloadable apps to help them stay in the loop in the EV community. Thus, EVgo has been aggressive in leveraging mobile apps to promote the company’s products.

Not long ago, EVgo subsidiary Recargo announced that the PlugShare platform – touted as the world’s largest EV community – surpassed 1 million app downloads since the start of 2021.

PlugShare is a platform used by EV drivers to locate and select public chargers. It’s also a social app, though, as the users can share their experiences and feedback around specific locations with other drivers.

As EVgo CEO Cathy Zoi explained, “EV adoption requires more than cars—it requires great cars, reliable charging, and excellent software.”

Moreover, Zoi remains optimistic as “this 1 millionth [PlugShare] annual download milestone is one of many as EV growth proliferates.”

Progress in California

Meanwhile, there’s more positive news afoot as EVgo continues to advance California’s EV infrastructure build-out.

EVgo has a history of installing EV charging infrastructure in the state, including the first chargers in the cities of Compton and Inglewood.

Believe it or not, more than 80% of Californians live within a 10-mile drive of an EVgo fast charger. And, that number is likely to increase soon.

That’s because EVgo has been selected by the State of California for proposed awards of $1.7 million in grant funding. The proposed funding would be used to establish 38 new D.C. fast-charging stalls at five locations.

These financial awards are to be granted by the California Air Resources Board through the Bay Area Air Quality Management District. All of the targeted sites will include power-sharing and power-routing 350-kilowatt fast chargers. These, reportedly, will be capable of charging most vehicles up to 80% in 15 to 45 minutes.

These new EV charging sites “will help enable Californians across neighborhoods and income levels take advantage of the benefits of driving electric,” according to EVgo Chief Commercial Officer Jonathan Levy.

The Bottom Line

No one can promise that EVGO stock will return to $20. Yet, the circumstances are favorable for an imminent rally.

EVgo is forward-thinking in its use of apps to bring more young drivers into the fold. Besides, California is a mecca of vehicle electrification and EVgo is clearly a favored business for the state’s EV infrastructure build-out.

So, it looks like there’s a mismatch between the EVGO stock price and the company’s thriving business. Therefore, investors should brace for a possible share-price doubling in 2022.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.