Stocks were up across the board intraday Wednesday as investors prepare for President Joe Biden’s speech in Pittsburgh regarding his $2 trillion infrastructure plan.
Ahead of the speech, the White House today posted an outline of the plan, which is set to be a boon to the renewable energy space, particuarly the electriv vehicle sector. According to the outline, Biden wants to spend $174 billion “to win the EV market.” That includes building 500,000 EV chargers by 2030, electrifying at least 20% of yellow school buses, as well as giving American consumers rebates and incentives to purchase domestically-made electric cars.
Also, President Biden’s plan aims to achieve 100% carbon-free electricity by 2035.
On the news, Elon Musk’s EV empire jumped 4% to $659.82 intraday. Also, Nikola (Nasdaq: NKLA), which makes batteries and hydrogen-electric vehicles, was trading 2% higher.
Currently, the federal tax credit allows for incentives of up to $7,500 on all-electric and plug-in hybrids. Because Tesla has sold too many vehicles, it would not qualify on the current federal policy. However, Wedbush analyst Dan Ives anticipates Biden would phase out the 200,000 car sale limit and boost federal tax credits to 10,000.
The analyst said in a note Wednesday that will “restore the EV tax credits for stalwarts Tesla and [ General Motors ],” as cited by Barron’s.
Solar stocks were also heating up today: Shares of Solaredge Technologies (Nasdaq: SEDG), First Solar (Nasdaq: FSLR), and SunPower Corp. (Nasdaq: SPWR), were trading 5%, 2%, and 4% higher, respectively.
Also, the Dow Jones was up 21 points, the S&P 500 gained 26 points, while the Nasdaq Composite inched 2% higher by midday,
Biden is set to detail his plan in the Steel City this afternoon.