Shares of Blink Charging (BLNK -9.97%) have jumped today, up by 9.6% as of 3:20 p.m. EST, as voters cast their ballots on Election Day and Democratic candidate Joe Biden is favored to win the presidency. A Biden administration is expected to promote adoption of electric vehicles (EVs), which would in turn bolster demand for Blink's EV charging network. The stock was up as much as 11% earlier in the session.
Current law provides for a federal tax credit of up to $7,500 for consumers who purchase alternative energy vehicles such as EVs. However, when a manufacturer reaches 200,000 in qualifying unit sales in the U.S., that credit begins to phase out in subsequent quarters. Additionally, the credit can only be applied toward a taxpayer's overall tax liability, so some middle-class consumers that don't owe that much in federal taxes may not receive the full value of the credit.
Biden has proposed reinstating the EV tax credit permanently, removing the volume cap applied to manufacturers, and making the credit more accessible to middle-class families, according to the Tax Policy Center. More broadly, a Democratic administration would be more favorable for renewable energy.
It's worth noting that this year's presidential election is being conducted under unprecedented conditions as a result of the COVID-19 pandemic. Due to various logistical challenges such as a heightened number of mail-in ballots, election officials have warned that it may take several days to determine the winner.
Blink is scheduled to report third quarter-earnings next week on Nov. 12.