After pouring trillions of dollars into the economy over the past 6 months, Biden's new plan could further light the fuse on the EV markets.
That's because his proposed $2 trillion infrastructure bill is expected to cover much more than just roads and bridges.
Under the current proposal, $174 billion would go directly to the EV sector, helping the United States finally cut into China’s massive lead in this booming industry.
Today, only about 2 percent of all new cars in the U.S. run on electricity.
But with Biden's new plan, the auto industry is expecting that half of all new cars will be electric within the next decade.
- It'll put 500,000 EV charging stations into place over the next decade.
- It'll electrify 20% of the nearly 500,000 US school buses.
- And it's already begun, starting with his pledge to replace the federal government's 650,000 vehicle motor pool with EVs.
That's why Vox is saying, "Biden wants to give electric cars a huge boost."
LA Times is saying, "Biden aims to make the US an EV powerhouse."
And Bloomberg is weighing in on where we’re headed next, predicting, "Tesla isn't the biggest winner from Biden's EV plan."
With the $174 billion set to tackle everything from retooling factories to rebuilding supply chains here in the United States, many expect this windfall will give smaller companies a major boost.
And we've identified 3 which could benefit from this huge investment in the electric vehicle industry.
Facedrive is not an EV manufacturer, but it looks poised to become a player in the growing EV industry after their fast ascension last year.
They're growing in part thanks to the popularity of their eco-friendly ridesharing model, which sets aside a portion of each ride's fare to offset the carbon footprint of the trip.
And the success of their food delivery service has also given them a boost.
After two major acquisitions to grow their customer base and partnerships last year, they're now serving 280,000 active users on their food delivery platforms.
That's come out to over 5,000 meal deliveries every day.
And it's still growing.
With a recent addition, they've increased their order count in some areas by a phenomenal 392% in just 3 weeks.
You'd be hard-pressed to find that kind of growth anywhere else on the markets, especially from a little-known company like Facedrive.
But a key acquisition from September may be their biggest yet.
That's because they've acquired the EV subscription service leader, Steer, from the subsidiary of the $45 billion clean energy giant, Exelon.
With Steer, subscribers can take their pick from a selection of EVs including luxury EVs in their digital showroom…
And with a simple monthly subscription, customers can use these high-end vehicles as their own for as long as they're a subscriber (or swap it out for another whenever they choose).
It's already jumped in popularity in Washington D.C.
But in recent months, it's now expanded to another major metro area across the border in Toronto.
Thanks to their partnerships and major acquisitions, Facedrive has set themselves apart from the competition.
And they could soon reap the rewards as the EV boom gets a boost with Biden's $174 billion EV investment.
2 - Chargepoint (NYSE:CHPT)
At this point, the demand for electric vehicles has been ramping up steadily for years.
But as we’re approaching the tipping point, we've seen a major problem take shape.
The Department of Energy is reporting that there are about 3 gas stations in place today for every EV charging station.
So as electric vehicles are set to take over the markets and become the vehicle of the future, we'll need far more charging stations than we have today.
That's why Biden's plan would establish grant and incentive programs, helping build a half-million charging stations over the next decade.
And that's where Chargepoint comes in, one of the largest charging station networks in the country.
This leading EV infrastructure player went public just a few months ago through one of the market's hottest trends.
That made them the first EV charging stock to have gone public via a reverse merger with a special purpose acquisition company, or SPAC.
As of September 2020, they've now built over 114,000 charging stations around the world.
But with over 90 million charges delivered, they're continuing to expand by delivering solutions for large fleets and businesses like VW, for example.
When it comes to the supercharged Level 2 EV charging stations, ChargePoint is the clear leader in the industry.
While Level 1 stations allow you to charge a Mercedes B Class 250e in around 20 hours...
Level 2 chargers cut that down to just 3 hours to fully charge that same vehicle.
That's a massive difference for people worried about having to spend nearly a day charging their vehicles before getting back on the road.
And ChargePoint has a whopping 73% of the market share of networked Level 2 charging stations.
So while Blink Charging may be the one making headlines, the truth is they may be falling behind as they hold only 8% of the market in this area.
For that reason, it's worth taking a hard look at ChargePoint as Biden's plans look to expand the EV charging station networks.
3 - Fisker (NYSE:FSR)
Tesla has come to be known in the markets for catering to high-end customers looking for a luxury EV.
But that’s left a gaping hole in the market for those that everyday folks can afford.
And if electric vehicles are expected to become mainstream, prices will have to be competitive with the gas-powered vehicles on the market today to make the switch.
That massive market opportunity is where Henrik Fisker is setting his sights.
After cutting his teeth as a designer for BMW and Aston Martin, he's now planning to bring that industry-leading experience to everyday folks.
His first vehicle to come to market will be the electric SUV, the Ocean, next year.
But Fisker’s production process will also be completely different from Tesla’s
After seeing the headaches that have come Tesla's way from running their own manufacturing, Fisker will instead outsource to experts who already have a proven process in place.
That will help avoid not just quality control issues, but also the problems that come with having to build your own factories to get things up and running.
That's why they've called on Magna International to build the Fisker Ocean.
Magna International is the same company that builds cars for major automakers like BMW, Toyota, Mercedes-Benz, and others.
And now, many are keeping their eyes on Fisker as they're set to make EVs suited for a broader customer base.
The Final Word
With China sitting on a giant lead ahead of the US, Biden is taking huge steps to close the gap in the EV space.
And this $174 billion injection could be the tipping point we've been waiting for to bring this megatrend to the next level.
But as Bloomberg is projecting, Tesla may not be the biggest winner.
That’s why it’s more important than ever to keep an eye on the up-and-comers in EV and EV related industries, like Facedrive, ChargePoint, and Fisker as they continue their growth trends.
Investors shouldn’t ignore the infrastructure needed to fuel the electric vehicle boom, either. Blink Charging (NASDAQ:BLNK) an electric vehicle charging company, will play a vital role in the lithium market for years to come. Why? Because its charging infrastructure will fuel even greater demand for the increasingly popular metal. And it’s been a great stock for investors, as well. It’s seen its share price soar significantly over the past year and it’s showing no signs of slowing. A flurry of new deals, including a collaboration with EnerSys have created some support for the relative newcomer.
Michael D. Farkas, Founder, CEO and Executive Chairman of Blink noted, “This is an exciting collaboration with EnerSys because it combines the industry-leading technologies of our two companies to provide user-friendly, high powered, next-generation charging alternatives. We are continuously innovating our product offerings to provide more efficient and convenient charging options to the growing community of EV drivers.”
Another high-profile deal between Blink and Envoy Technologies to deploy electric vehicles and charging stations adds further support to the company’s stock price.
Aric Ohana, CEO of Envoy noted, “We’re excited to work with Blink on the deployment of their fast Level 2 charging stations as part of our exclusive electric car-sharing service. The vision of our two companies is aligned: to advance the adoption of electric vehicles. To continue to drive the growth and success across our expanding locations, we have to ensure that our clients have easy and efficient access to high-quality, reliable charging equipment. Blink has an established reputation as an innovator in the EV market, and we are thrilled to add them as a preferred partner.”
Though charging is important, and up-and-comers are still worth watching, Tesla (NASDAQ:TSLA) is without a doubt one of the hottest stocks on Wall Street. And that’s a big dea. As one of the world’s most exciting -and important- car makers, it has made going green a must in this incredibly competitive industry. Its modern design has become an industry standard. Tesla has single-handedly made electric vehicles cool, and has fueled the dramatic rise in this burgeoning market since its inception.
Elon Musk saw this trend coming a mile away, however.. In fact, he released the first Tesla Roadster back in 2008, making electric vehicles desirable when people were laughing at first-gen electric vehicles. In addition to producing one of the most desirable electric vehicles on the market, Tesla is ramping up its solar and battery game, as well. Tesla’s Solar Roof project aims to change the way houses function. It replaces traditional roofs with stronger, and arguably more aesthetically pleasing, solar panels that can power your entire home. It also comes in as the lowest-cost-per-watt solar option in the American market. And its in-home superbatteries will be a game-changer for storing and distributing electricity in the future.
Tesla’s influence hasn’t been ignored overseas, either. NIO Limited (NYSE:NIO) used to be an outlier in the EV market. In fact, much of Wall Street was to write off their losses and give up on the company. It was even on the brink of bankruptcy 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. The company has seen its share price soar from $3.24 at the start of 2020 to a high of $50 earlier this year before falling back to its current price of $34.88.
And November of last year, NIO unveiled a pair of vehicles that would make even the biggest Tesla devotees truly contemplate their brand loyalty. The vehicles, meant to compete with Tesla’s Model 3, could be exactly what the company needs to take control of its domestic market.
It’s not just about slick cars, either. Nio, Tesla’s largest competitor in China, has also started to offer a batteries-as-a-service concept, in which car buyers can ‘lease’ the battery of their vehicle and save as much as $10,000 on the price of a new vehicle, while also offering buyers the option to swap batteries after a few years of use. And that’s huge news in the lithium world, because it will mean give miners even greater incentive to sign deals with the battery innovator.
The EV boom isn’t limited to the US and China, however. GreenPower Motor (TSX:GPV) is an exciting company that produces larger-scale electric transportation. Right now, it is primarily focused on the North American market, but the sky is the limit as the pressure to go green grows. GreenPower has been on the frontlines of the electric movement, manufacturing affordable battery-electric busses and trucks for over ten years. From school busses to long-distance public transit, GreenPower’s impact on the sector can’t be ignored.
NFI Group (TSX:NFI) is another one of Canada’s most exciting companies in the electric vehicle space. It produces transit busses and motorcycles. NFI had a difficult start to the year, but it since cut its debt and begun to address its cash flow struggles in a meaningful way. Though it remains down from January highs, NFI still offers investors a promising opportunity to capitalize on the electric vehicle boom.
Recently, NFI has seen an uptick in insider stock purchases which is often a sign that the board and management strongly believe in the future of the company. In addition to its increasingly positive financial reports, it is also one of the few in the business that actually pay dividends out to its investors.
Magna International (TSX:MG) is another unique way to gain exposure to the EV - and by extension ESG - market without betting big on one of the new hot automaker stocks tearing up Robinhood right now. The 63-year-old Canadian manufacturing giant provides mobility technology for automakers of all types. From it’s partnership with Fisker and GM and Ford to luxury brands like BMW and Tesla, Magna is a master at striking deals. And it’s clear to see why. The company has the experience and reputation that automakers are looking for.
Lithium is the resource that is fueling the EV boom, and the companies producing it are likely to win big in the coming years. Celestica (TSX:CLS) is a key company in the lithium boom due to is role as one of the top manufacturers of electronics in the Americas. Celestica’s wide range of products includes but is not limited to communications solutions, enterprise and cloud services, aerospace and defense products, renewable energy and enough health technology.
Thanks to its exposure to the renewable energy market, Celestica’s future is tied hand-in-hand with the green energy boom that’s sweeping the world at the moment. It helps build smart and efficient products that integrate the latest in power generation, conversion and management technology to deliver smarter, more efficient grid and off-grid applications for the world’s leading energy equipment manufacturers and developers.
Lithium Americas Corp. (TSX:LAC) is one of North America’s most important and successful pure-play lithium companies. With two world-class lithium projects in Argentina and Nevada, Lithium Americas is well-positioned to ride the wave of growing lithium demand in the years to come. It’s already raised nearly a billion dollars in equity and debt, showing that investors have a ton of interest in the company’s ambitious plans, and it will likely continue its promising growth and expansion for years to come.
It’s not ignoring the growing demand from investors for responsible and sustainable mining, either. In fact, one of its primary goals is to create a positive impact on society and the environment through its projects. This includes cleaner mining tech, strong workplace safety practices, a range of opportunities for employees, and strong relationships with local governments to ensure that not only are its employees being taken care of, but locals as well.
By. Glen Newman
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
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. Forward looking statements in this publication include that the demand for ride sharing services and EV subscription services will grow; that Steer can help change car ownership in favor of subscription services; that Biden’s infrastructure spending will help increase Facedrive revenues; that Facedrive will be able to expand to the US and globally; that Facedrive will be able to fund its capital requirements in the near term and long term; and that Facedrive will be able to carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that riders are not as attracted to EV rides as expected; that competitors may offer better or cheaper alternatives to the Facedrive businesses; changing governmental laws and policies; the company’s ability to obtain and retain necessary licensing in each geographical area in which it operates; the success of the company’s expansion activities and whether markets justify additional expansion; the ability of the company to attract drivers who have electric vehicles and hybrid cars; and that the products co-branded by Facedrive may not be as merchantable as expected. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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