Electric vehicle stocks jump on Biden’s $2.3 trillion infrastructure plan

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electric vehicles

The main news development for Wednesday was President Biden’s newly announced $2.3 trillion infrastructure plan. Besides allocating hundreds of billions of dollars to rebuilding the bridges and roads of America, the plan also has set aside funding for green energy initiatives, specifically in the transportation industry. This includes incorporating more electric vehicles (EVs) as well as building more charging stations across the country. As expected, shares of most EV stocks are rising in response to the news, although the gains aren’t as wild as you might have thought.

Besides rebuilding roads and bridges, the new plan would also try to improve broadband internet access around the country and develop more EV-friendly infrastructure. This includes over 500,000 new electric charging stations, thousands of new electric buses, as well as rebuilding over 20,000 miles of roadway. A second part to this plan I expected to come out sometime in April, which will focus on healthcare and education. Putting both plans together, the total cost is estimated to range between $3 trillion and $4 trillion. However, it could take months, if not longer, for these proposals to get approved.

It’s not a plan that tinkers around the edges, it’s a once-in-a-generation investment in America. Here’s the truth: We all will do better when we all do well. It’s time to build our economy from the bottom up and from the middle up, not the top down,” said President Biden in a speech.

The main opposition for this new plan will likely come from Senate Republicans, which will contest the proposed corporate tax hike from 21% to 28%, the main way the Biden administration hopes to pay for this aggressive plan. Moderate Democrats could also voice some concerns over spending too much money, especially on top of a recently passed $1.9 trillion stimulus package.

Most EV stocks are seeing high single-digit or low-double-digit gains right now. Tesla (NASDAQ: TSLA) is up around 8% right now in pre-market trading, while Nio (NASDAQ: NIO) and XPeng (NYSE: XPEV) are up 9.2% and 12.9%, respectively. Companies that have managed to secure pre-existing government contracts are doing especially as well, as that’s seen as a good sign they will be able to secure more contracts if this new infrastructure plan is signed into law.

One company that fits that description is Blink Charging (NASDAQ: BLNK). Shares are up around 13.2% in response to this news, making it one of the better-performing EV stocks yesterday. The electric charging station manufacturer has secured a number of state contracts already, including one with the state of Ohio. If this new plan is approved, Blink is considered one company likely to receive government contracts to build new charging stations.

Blink Charging Company Profile

Blink Charging Co is an owner, operator, and provider of electric vehicle (EV) charging services. The company offers both residential and commercial EV charging equipment, enabling EV drivers to easily recharge at various location types. Its principal line of products and services are Blink EV charging network (the Blink Network) and EV charging equipment (also known as electric vehicle supply equipment) and EV related services. – Warrior Trading News

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