James West: Right. Okay. Got it. And then maybe just a quick follow-up for me. On the depot sites, you mentioned you’re building a second one. How large is a depot site for you at this point how many sales?
Catherine Zoi: Again, it depends on the particular location. Somewhere between 18 and 30 kind of typically is what we’re looking at for these sites.
Operator: Your next question comes from the line of Bill Peterson with JPMorgan.
William Peterson: Similarly, Cathy, good luck and next especially looking forward to working with you. First question is on the initial disclosure. So Pennsylvania actually had some disclosure on the NEVI awards. And it’s not comprehensive, but some of the information would point to EVgo and other project costs being materially higher than Teslas. It looks like around double. I’m not sure if this is apples-to-apples. But I guess can you break down some of the cost elements and how you’re thinking about hardware construction installation, I guess, in order to be more competitive across these sort of [indiscernible] into the new year?
Catherine Zoi: Bill, I think you’re right. I think that it isn’t necessarily apples-to-apples. But — and Olga, you may want to chime in with what we sort of our breakdown of our CapEx like bill of materials?
Olga Shevorenkova: So our CapEx right now is $150,000 on average per stall. That is inclusive of everything. All the types of equipment, all the labor, all the utility work so for some sites you have a lot, for some sites you will have de minimis, but on average, right, there will be costs associated with that. So roughly 40% of it is equipment, 60% of it is labor. We have seen Tesla numbers. We believe that, for example, don’t include utility components, and it’s hard for us to comment what portion of labor is included on an equipment to equipment, we’re kind of looking at it and that’s probably a little bit more apple-to-apple, but on overall CapEx it’s very hard for us to truly deserve by just looking at absolute number reported and saying it is — we can compare it to and conclude it’s half. We don’t know what’s missing. We know utility is missing, but we don’t know what else is missing to do a full comparison.
Catherine Zoi: But let’s just zoom up for a second, Bill. Suffice it to say that every smart business is looking to decrease is bill of materials and to innovate. And so that’s why we’re real particularly excited like we just announced this prefab skid that we’re doing that’s going to decrease costs and save a lot of time. So that’s both a labor benefit and an equipment benefit. And there’s lots of other things in our road maps that are going to be getting. So we’re — and you will hear about those, I think, from Badar and Olga next year. But we’re very, very excited about our innovation road map to remain competitive.
William Peterson: That’s helpful. And I guess trying to think about the share, first of all, this great network throughput drove here, utilization trends are turning higher. But if we think about the model working long term, it’s going to be about installing more stalls and kind of letting this flywheel take effect. So I guess if we think about next year and beyond, how should we think about your share of ports being installed. Does EV going to expand in 2024 and 2025 faster than the market in order to drive this flywheel. And I guess, really, ultimately, how dependent on this growth plan in the next year will be dependent on policy support or DOE loans or other funding?
Olga Shevorenkova: Yes. So maybe to start, really a high level, when we think about our market share, we always think about the market share as a percentage of kilowatt hours, which gets dispensed by DCFC. So when we do our network plan, be it short term or long term, we always optimize for that market share rather than the number of ports. So we are not — our goal is not to put as many ports as somebody else as many ports as average. Our goal is to put the ports in the highest utilization locations to maximize the profitability of every single port we invest in it. So from that perspective, we probably won’t — depending how else, how everybody else is deploying. That’s just not the metric we’re looking at. I don’t have hard time kind of like commenting on this, which is going to be faster or slower.
What we — what you’ve observed in our filings and what we reiterated with this quarter, we are growing faster than VIO in terms of the throughput. So we are gaining and our various extrapolations showed that in the last few quarters, we’ve been gaining market share. We’ve been gaining market share with the DCFC segment. The overall DCFC segment has been gaining market share in terms of percentage of people charging DCFC versus Level 2. So those is the metrics we’re looking at because they directly tag to profitability. The number of ports without utilization is a simple sum cost, and that’s not how we look at our business. Is that helpful?
William Peterson: Yes, sorry, I was on mute. It is helpful. But I guess still, nonetheless, I mean you need to have critical mass, I would think in these markets, you talked about all these sort of new non-California markets in terms of driving mind share and driving people to these sites. So I guess how much will that depend on other funding opportunities versus your own balance sheet?
Olga Shevorenkova: From that perspective, yes. So we — EVgo business is expected to be financed through combination so a combination of cash on balance sheet, funding sources, which include state — federal state and municipal programs, 30C and partner funds. So as I mentioned in my prepared remarks, for example, for 2023, roughly 45% of 2023 vintage CapEx, of the CapEx spend on 2023 assets will be financed through the sources we expect similar ratios going forward. And that is already baked into the network plan. We spoke a little bit earlier on this call about the network plans. The network plan takes it into the account. We also, as we’ve already mentioned before, in the process of a plan for DOE loan, which is a very optimally priced source of capital.
It’s a nondilutive source of capital, which would allow us to really underpin our network plan in 2025, 2026 and beyond. So we are constantly thinking about various funds and sources, and it always will be a combination of cash on balance sheet, non-dilutive financing sources and various grant programs.
Operator: Your next question comes from the line of Chris Pierce with Needham & Co.
