Stocks

Biden’s $174B infrastructure plan to boost EV market

Biden's $174B infrastructure plan to boost EV market

Today, Biden has announced the use of $174 billion to build out his infrastructure plan. It will mainly go to boosting America’s electric vehicle (EV) market. However, the funds are just one part of Biden’s infrastructure plan.

To ensure Americans actually purchase these domestically manufactured EVs, Biden also plans to establish sales rebates and tax incentives for the purchase of American-made EVs, though the size of the credit has not been released.

Customers can already cash in a $7,500 federal tax credit for EVs, but it is not available to automakers that have sold more than 200,000 electric cars – people looking to purchase a Tesla, for instance, would not qualify for the credit. It’s unclear whether the new tax credit would raise or abolish the sales limit for automakers.

The plan also proposes using some of the funds to build a national EV charging network of 500,000 stations by 2030.

On the transit side, Biden’s administration said the funds will also go towards replacing 50,000 diesel transit vehicles and electrifying at least 20 percent of school busses, through a new program administered by the Environmental Protection Agency.

EV Market run down

  • Shares of Tesla (TSLA) increased 3%
  • Shares of Nio (NIO) saw a high of 3%
  • Shares of Li Auto (LI) saw an increase of 7%
  • Shares of Xpeng (XPEV) saw an increase of 6%
  • Shares of Chargepoint (CHPT) increased 16%
  • Shares of Blink Charging (BLNK) increased 8%
  • Shares of Tortoise Acquisition (SNPR) soon to be Volta Charging increased 5%