Read the story here. Advertise at Before It's News here.
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Electric vehicle, green energy 'tidal wave' to be unleashed by Biden spending splurge

% of readers think this story is Fact. Add your two cents.

The US$2.25 trillion infrastructure spending plan unveiled by US president Joe Biden overnight is expected to be a boon for green energy and electric vehicles (EVs), according to analysts at Wedbush.

In a note on Wednesday night, the broker said the US$174bn earmarked in the plan for EV initiatives is “just the start”, saying the industry would need to see an expansion of the tax credits as well as other point-of-sale rebates that could be inserted into the bill as it moves through Congress, which Wedbush said could “catalyse consumers to head down the EV path”.

Analysts also said they expected the lifting of the 200,000-per manufacturer ceiling on the credits being phased out, which will restore the EV tax advantage for industry stalwarts such as Tesla Inc (NASDAQ:TSLA) and General Motors Company (NYSE:GM).

“Another lynchpin of these EV initiatives will be centred around massive expansion of charging stations around the US over the next decade. Today there are roughly 100k public charging ports with another 400k needed over the next decade to support this groundswell EV green tidal wave for consumers/trucking with the goal of 500k by 2030”, Wedbush said.

“While the stocks and the EV space is clearly going through a painful digestion period, we view this as a short-term pullback in a multi-year upward rally…there are many pure play innovative EV players (consumer/commercial) on the horizon poised to capitalize on a Biden driven green tidal wave domestically with our expectations that the tax credits and incentives around EVs will ramp significantly in the coming years”, the broker added.

Transportation and manufacturing to receive billions

While the EV funding news may be one of the more interesting aspects of the spending plan, Biden’s bill also includes US$620bn for transportation and US$650bn for measures that include clean water and high-speed internet.

An additional US$580bn has been earmarked for US manufacturing, which includes US$180bn for non-defence research & development, as well as US$400bn for elderly and disabled care.

Assessing the plans, analysts at JP Morgan said the plans imply an additional US$14bn of infrastructure spending per annum, which could be beneficial for construction materials firms such as CRH PLC (LON:CRH).

Analysts at RBC, meanwhile, have made a similar assessment, highlighting plumbing and heating products maker Ferguson PLC (LON:FERG) as another potential winner.

But Republicans unlikely to be on board

However, Biden’s grandiose plans will still need to make it through both houses of Congress to become law, which includes retaining full support from the Democrats’ wafer-thin majority in the Senate as analysts are not optimistic that any opposition Republican Senators will support the spending spree.

A particular point of contention is likely to be Biden’s plan to raise corporation tax to 28% from 21%, partially undoing cuts to the tax passed by the Trump administration in 2017.

“We suspect that President Joe Biden will struggle to garner bipartisan support for his $2trn in infrastructure spending, even if he was willing to placate centrist Senate Republicans by dropping his proposal to fully fund that investment by raising corporate taxes”, said analysts at Capital Economics.

“We think the most likely outcome is that the Democrats will end up passing a revenue-neutral infrastructure package using a budget reconciliation early in the next fiscal year, which begins this October”, they added.

Story by ProactiveInvestors


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Load more ...




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.