Green & More Green
With the Biden Administration about a week into their operations some big changes have already come. One of the largest places President Biden has vowed to make changes is with the climate. In fact, recently Biden revealed that he is planning to place $2 trillion into renewable energy infrastructure and electric vehicles, two of the biggest areas of technology aiming to create a greener future.
So, what does this mean for stocks? Well, the pricing for this news has largely already occurred, with big EV companies like . NIO rising about 6 percent in one day and claiming the 5th spot in the world for most valuable car maker, with a market value of approximately $100 billion. The gains have also reached smaller companies in the area with Greenpower Motor Company, Kandi Technologies, ElectraMeccanica Vehicles, and Arcimoto holding a combined market cap of $2.6 billion. With gains reaching companies of every size in the EV market many investors are sticking around for the long term.
President Biden’s moves include a new “Buying American” executive order that includes a plan to replace the government’s fleet of current vehicles with U.S assembled electric vehicles. With this plan, Biden did not mention a specific time frame for switching the government’s cars, likely in part because EVs cost substantially more than traditional vehicles. If this plan does go into place however, Biden claims it will play a role in the administration’s plan to create 1 million new jobs in the U.S. auto industry.
Are you bullish for EV’s and green energy? And do you think the public sectors support will push the EV market to new heights?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.