Electric vehicle (EV) stocks shot through the roof on Monday after the House of Representatives, on Friday night, approved the Biden administration's $1.2 trillion infrastructure bill. In response to the passage of the bill, investors pumped money into stocks they believe could win big once the U.S. government kicks off spending under the infrastructure bill. Here's how much some of the top-performing EV stocks were faring as of 2:35 p.m. EDT:
The $1.2 trillion infrastructure bill calls for an investment worth $7.5 billion on building an EV charging network of 500,000 chargers across the U.S. The Biden administration believes this spending is crucial to bridge the gap between the U.S. and China, citing how "U.S. market share of plug-in EV sales is only one-third the size of the Chinese EV market."
Not surprisingly, every company that has anything to do with electric vehicles, specifically charging infrastructure, is on fire today.
Blink Charging, in fact, was quick to release a statement Monday morning to applaud the passing of the infrastructure bill. Blink Charging's CEO, Michael Farkas, had this to say about the bill:
With this legislation, the momentum we are seeing today is just the start of where the industry will go. This commitment by bipartisan lawmakers is pivotal in propelling the industry forward in a strategic and methodical manner, where public actions complement the efforts of private industry to develop the infrastructure required to realize significant and meaningful change for electric vehicles.
Farkas revealed Blink Charging had been awarded roughly $25 million in E-infrastructure rebates, grants, and incentives. He said the company is well positioned to deploy EV charging stations to help the Biden administration achieve its goals. In its last presentation, in July, Blink Charging reported having more than 17,000 EV charging stations across the U.S.
During its last earnings conference call, EVgo, the owner of the nation's first EV charging network that runs on 100% renewable energy, called federal policies on EV charging infrastructure a "big accelerant." In September, EVgo said its customer accounts had crossed the 300,000 mark.
While it's no surprise that Blink Charging and EVgo shares soared today given their core EV charging business, Quantumscape rallied as investors believe a push in EVs under the Biden administration should mean more opportunities for the solid-state EV battery-technology stock. In late October, roughly a month after announcing a deal with a top global automotive company to test Quantumscape's advanced battery prototypes, Quantumscape announced positive, third-party test results for its three-layer single cells. The battery maker already had a long-standing partnership with Volkswagen.
Quantumscape is still years away from commercializing its battery technology, while Blink Charging and EVgo are already serving the EV industry. Still, the rally in all three stocks today reveal how excited investors are about the prospects of EV stocks under the Biden administration.
With EVgo and Blink Charging also set to release their quarterly earnings reports on Nov. 10 and Nov. 11, respectively, expect a lot of movement in these two stocks.