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How the $2.5 Trillion Infrastructure Bill Could Send EV Stocks Soaring

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News provided by Oilprice.com

Just days from now, Biden is set to gamble a proposed $2.5 trillion on a new plan, in hopes of bringing America’s foundation into the next generation. It’s coming in the form of the biggest infrastructure project since the highway system was built in the 1970s. But with today’s massive infrastructure bill, most people might be missing the real story. 

That’s because typical “infrastructure” pieces like roads, highways, and bridges don’t even make up the biggest part of the bill. Instead, billions more are planned to be spent on what will be driving on those roads instead.

That’s why USA Today is saying, “Biden pushes the US electric vehicle revolution.”

EV fans are calling it “a down payment on the future of transportation.”

And CBS News just reported Biden’s latest proclamation, “The future of the auto industry is electric. There’s no turning back.”

But while the massive $174 billion is expected to help push the EV industry past the tipping point and into the mainstream…This could be pocket change compared to the private money expected to follow into the industry…Which is why smart investors may be investing their money into the latest hot EV stocks, as Biden prepares to put the proposed $2.5 billion down in his big gamble.

Detroit Giants Still In The Running

The media buzz used to revolve entirely around Tesla, but lately that story has changed. Ford (F) recently made headlines with their announcement of their electric truck, the Ford F-150 Lightning.

With the F-150 being the best-selling vehicle in America for 39 years and running, this could be a huge turning point for the EV industry. And just days ago, Biden brought all eyes to the electric F-150 as he took it out for a ride at their motor plant in Dearborn, Michigan.

2022 Ford F-150 Lightning Platinum
2022 Ford F-150 Lightning Platinum

That was followed by nearly 45,000 reservations in 2 days from the hordes of people trying to get their hands on one. While many have high hopes because of the popularity of the F-150…The F-150 Lightning could see even greater success since it’s helping overcome what’s been one of the EV industry’s biggest barriers in the past.

The extra cost has kept EVs mostly limited to the wealthy.  But as the F-150 Lightning is set to be released with a price tag of $39,974, it’ll be $16K cheaper than Tesla’s new Cybertruck. And after federal tax credits and state incentives being poured in… It could be even cheaper than a gas-powered truck at this point. The Lightning is expected to hit the shelves coming in 2022, but there’s another EV truck that will be coming even sooner…

The EV IPO To Watch

Rivian is another red-hot EV company making news lately because of their R1T truck. The R1T could soon start the wave of new EV sales as this new model is set to go public in June.

Rivian has already been making headlines over the last year thanks in part to their landmark deal with Amazon. Amazon has made it known that they plan to go electric with their delivery trucks.

They began testing Rivian trucks earlier this year. And they’re expected to transition 10,000 of their vans to electric by 2022. That number could soar to over 100,000 vans by 2030.

If all goes well for Rivian, it could turn out to be a massive deal that would quickly make them one of the biggest names in the space. But while everyone’s waiting on Rivian going public for their chance to invest…They remain private at the moment, with nothing but an enormous amount of speculation around when they’ll IPO and give everyday folks a chance to profit in the process.

Other Giant Automakers Are Getting Into The Game

General Motors (GM) is one Detroit’s old school automakers, and it’s looking to catch a ride on the EV bandwagon, benefiting from a shift from gas-powered to alternative technology such as hydrogen and electricity. It’s now well over 100 years old and has survived where many others have failed. Even with the downfall of Detroit, GM has persisted, and that’s due in large part to its ability to adapt. In fact, GM’s dive into alternative fuels began way back in 1966 when it produced the world’s first ever hydrogen powered van. And it has not stopped innovating, either. It’s now on path for an all-electric future.

Recently, GM dropped a bomb on the market with the announcement of its new business unit, BrightDrop. The company is looking to capture a key share of the burgeoning delivery market, with plans to sell electric vans and services to commercial delivery companies.

Toyota Motors (TM) for example, is a leader in the industry. Beginning with the Prius, Toyota has been on the cutting edge of green transportation for years and years. And now, it has developed a fuel cell system module and looks to start selling it after the spring this year in a bid to promote hydrogen use and help the world achieve carbon neutrality goals, the world’s largest car manufacturer said in February. According to Toyota, the new module can be used by companies developing fuel cell (FC) applications for trucks, buses, trains, and ships, as well as stationary generators.

Chinese EV Companies Making Major Moves

Nio Limited (NIO) is one of Tesla’s most exciting new competitors, dominating the Chinese EV markets. After a rough start after going public in 2018, it’s been on a tear, producing vehicles with record-breaking range.

Just a year ago, no one could have imagined how successful the Nio was going to be. In fact, many shareholders were ready to write off their losses and give up on the company. But China’s answer to Tesla’s dominance powered on, eclipsed estimates, and most importantly, kept its balance sheet in line. And it’s paid off. In a big way.

Li Auto (LI) is another up-and-comer in the Chinese electric vehicle space. And while it may not be a veteran in the market like Tesla or even NIO, it’s quickly making waves on Wall Street. Backed by Chinese giants Meituan and Bytedance, Li has taken a different approach to the electric vehicle market. Instead of opting for pure-electric cars, it is giving consumers a choice with its stylish crossover hybrid SUV. This popular vehicle can be powered with gasoline or electricity, taking the edge off drivers who may not have a charging station or a gas station nearby.

Though it just hit the NASDAQ in July of last year, the company has already seen its stock price more than double. Especially in the past month during the massive EV runup that netted investors triple digit returns. It’s already worth more than $30 billion but it’s just getting started. And as the EV boom accelerates into high-gear, the sky is the limit for Li and its competitors.

By. Julian Lowe

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Forward-Looking Statements

This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements.

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