President Biden’s $ 174 billion plan to boost electric vehicle sales includes $ 100 billion in new consumer rebates and $ 15 billion to build half a million new charging stations for electric vehicles, Reuters reported. Electric vehicle stocks rose.
New discounts on electric vehicles could potentially boost General Motors (GM) and Tesla (TSLA) who are no longer eligible for $ 7,500 rebates after selling more than 200,000 zero-emission vehicles.
But it’s still unclear if the plan will raise the 200,000-car cap to qualify for discounts on electric vehicles, as some on Wall Street expected.
Electric vehicle promotions
Meanwhile, new electric vehicle stocks love Lordstown (THE TRIP), Canoo (GOEV) and Fisker (FSR) plans to bring its first electric vehicles to market soon.
Reuters quoted a Department of Transportation email sent to congressional staff. Politico reported this email earlier.
Biden’s proposals to boost electric vehicle sales are part of a $ 2.3 trillion infrastructure and job creation proposal. The plan also includes $ 20 billion in electric school buses, $ 25 billion in electric vehicles, and $ 14 billion in other tax breaks, according to Reuters.
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Tesla shares rose 1.9% to 683.99 in stock market trading on Thursday. Among other EVs, Lordstown rose 4.9%, Canoo 4% and Fisker 0.1%.
Biden also plans to build a national network of 500,000 EV chargers by 2030 through subsidies and incentives for states and cities. This is now five times the size of the national network.
AlixPartners estimates that it will take $ 300 billion to build a global charging network to support the expected growth of electric vehicles by 2030, including $ 50 billion in the US alone.
Ahead is the road uphill
What’s more, Biden’s EV proposals run into trouble in Congress, where Democrats and Republicans are united in developing national infrastructure but disagree on how to pay for it.
Among the stocks of electric vehicles tied to batteries and charging networks, ChargePoint (CHPT) and QuantumScape (QS) has grown by a share. Flashing Charging (BLNK) jumped 11% to 45.31.
Blink announced Thursday it will install 42 charging ports at 10 locations at the Four Brothers Pizza Inn throughout New York City. The company has won grants and awards for deploying fast charging stations in states such as Ohio, Vermont and Texas.
Find Aparna Narayanan on Twitter at @IBD_Aparna…
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