- Electric-vehicle stocks moved higher on Wednesday following the release of Biden’s $2 trillion infrastructure plan.
- The plan would invest $174 billion in the electric-vehicle market to better compete with China.
- Shares of Tesla, Fisker, and Lordstown Motors were higher by as much as 4% in Wednesday trades.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
The electric-vehicle sector got a boost on Wednesday with the release of President Joe Biden’s $2 trillion infrastructure proposal.
The bill would carve out $174 billion for the EV sector, as Biden aims to better equip US companies to compete with China, which has a bigger market share of plug-in electric vehicle sales.
Biden’s plan would help automakers retool their factories, invigorate domestic supply chains for raw materials and parts, and “support American workers to make batteries and EVs,” according to a White House fact sheet on the proposal distributed today.
The infrastructure plan would also give rebates and tax incentives to US consumers that buy American-made EVs, and establish grant-and-incentive programs for local governments and the private sector to build a network of half-a-million EV chargers by 2030.
Electrifying the federal fleet of vehicles, US Postal Service vehicles, and at least 20% of school buses are also priorities of the infrastructure plan.
Investors cheered the news, with EV stocks halting their recent multi-month decline and moving higher. EV stocks have been under pressure in recent weeks as a rise in interest rates made these high-growth stocks less appealing relative to more value-oriented cyclical stocks.
Shares of Tesla, Fisker, and Lordstown Motors each traded up as much as 4% in Wednesday trades. Shares of Chinese EV companies also moved higher, with shares of Nio, XPeng, and Li Auto up 1%, 5%, and 7%, respectively.