What happened
Shares of electric vehicle charging network company Volta (VLTA) got charged up with a double-digit gain on Friday. The shares closed the last trading day of the week with a gain of 10%, after the company crossed a milestone, and political winds seemed to be blowing in its favor.
So what
In the macro picture, politicians in Washington have been working on an agreement for President Joe Biden's Build Back Better spending plan. That potential legislation is in addition to the bipartisan infrastructure bill that has already been passed by the Senate and is awaiting a vote in the House of Representatives. Both plans include funds that could benefit Volta in a big way. In addition, the company announced yesterday that it crossed the 100 million EV mile mark for its charging stations.
Image source: Getty Images.
Now what
Volta differentiates itself in the charging network sector by partnering with retailers to offer advertising on its charging station digital display monitors that are placed in high commerce areas. It provides Volta with an added revenue stream and gives retailers a chance to tap the consumer just as they are about to enter a store. Volta says its charging network has "among the best utilization per station in the EV charging industry for the United States."
Should it pass, the infrastructure bill has $7.5 billion allocated to go toward building out a nationwide network of EV plug-in chargers. And the separate, but parallel, spending package that is currently still being arranged reportedly contains a vehicle electrification-focused rebate program, as well as a credit to buyers of certain U.S.-made EVs.
Investors today are celebrating both Volta's milestone and the potential for a boost from federal spending, though investors should note that it remains in a crowded, and speculative, space.
