Skip to main content

Workhorse, Other Electric-Vehicle Shares Rise on Biden EV Plan

President Biden says the government will switch to 'clean electric vehicles made right here in America, by American workers.' EV shares are higher.
  • Author:
  • Publish date:

Shares of electric-vehicle companies, led by Workhorse Group  (WKHS) - Get Workhorse Group Inc. Report, rose on Tuesday, after President Joe Biden said in a speech that the U.S. government would be purchasing EVs.

"The federal government also owns an enormous fleet of vehicles, which we're going to replace with clean electric vehicles made right here in America, by American workers," Biden said.

Workhorse recently traded at $29.25, up 18%; Lordstown Motors  (RIDE) - Get Lordstown Motors Corp. Report at $26.44, up 14%; and Nikola  (NKLA) - Get Nikola Corporation Report at $23.18, up 12%. 

Market darling Tesla  (TSLA) - Get Tesla Inc. Report was higher early on Tuesday and more recently traded at $876.59, edging down 0.5%.

Regarding Tesla, the giant of the group, Morningstar analyst David Whiston puts fair value at $306.

“Tesla has a chance to be the dominant electric vehicle firm long term and is a leading autonomous vehicle player as well as a vertically integrated sustainable energy company with energy generation and storage products,” he wrote in a commentary last month.

Scroll to Continue

TheStreet Recommends

“But we do not see it having mass-market volume this decade. Tesla's product plans for now do not mean an electric vehicle for every consumer who wants one, because the prices are too high.”

How high are those prices? “The Model X crossover released in late 2015 starts at about $80,000, the Model S sedan's starting price is $69,420, the Model 3 sedan starts at $37,990, and the Model Y crossover starts at about $50,000,” Whiston said.

Further, “Tesla will have growing pains, recessions to fight through before reaching mass-market volume, more competition, and needs to pay off debt,” he said. 

"It is important to keep the hype about Tesla in perspective relative to the firm's limited, though now growing, production capacity.”

Tesla Analysts See More Gains as Wednesday Earnings Report Nears

Lordstown Shares Initiated Buy at R.F. Lafferty