Tesla, Other EV Shares Rise, as Biden Offers $174 Billion in Aid

Tesla, Workhorse and others could benefit from the plan. Biden seeks to prevent China from dominating the EV industry.
Author:
Publish date:

Shares of electric vehicle companies rose Wednesday, as President Biden’s latest infrastructure program includes $174 billion of support for the industry.

“U.S. market share of plug-in electric vehicle sales is only one-third the size of the Chinese EV market,” the White House said in a statement. “The president believes that must change. He is proposing a $174 billion investment to win the EV market.”

On the manufacturing side, “his plan will enable automakers to spur domestic supply chains from raw materials to parts, retool factories to compete globally, and support American workers to make batteries and EVs,” the White House said.

Read More: Tesla Looking to Make 5 Semi Trucks Per Week in Nevada

On the consumer side, “It will give consumers point of sale rebates and tax incentives to buy American-made EVs, while ensuring that these vehicles are affordable for all families and manufactured by workers with good jobs.”

And on the government side, “it will establish grant and incentive programs for state and local governments and the private sector to build a national network of 500,000 EV chargers by 2030, while promoting strong labor, training, and installation standards.”

The Global X Autonomous & Electric Vehicles ETF  (DRIV) - Get Report recently traded at $26.43, up 0.45%. Among individual stocks, Tesla  (TSLA) - Get Report recently traded at $656.69, up 3.31%; Workhorse Group  (WKHS) - Get Report at $13.45, up 0.37%; and Fisker  (FSR) - Get Report at $17.19, up 2.81%.

Meanwhile Wednesday, TheStreet.com reported that Tesla is expected to have delivered 174,000 new cars in the first three months of 2021, well above what it churned out a year ago, but short of what it produced and sold in the fourth quarter of last year.

Tags
terms:
Automotive