Shares of electric mobility stock Proterra (PTRA -0.59%) jumped as much as 23.8% on Monday after Congress passed a $1.2 trillion infrastructure bill. Shares closed the day up 17.1%, and investors seem to be suddenly bullish on large infrastructure investment again.
The bill passed late on Friday includes $7.5 billion for electric vehicle charging along highway corridors and $5 billion directly for zero-emission buses. This could be a huge boost for Proterra, which is a leader in EV bus manufacturing.
Overall, the funding should accelerate investment in industrial vehicles that Proterra is aiming to provide drivetrains to. If buses become more economical, we could see trucks and construction equipment electrify as well. This is a long shift, but any nudge in that direction helps Proterra.
While I think the passage of this infrastructure bill is good news, the company has a long road ahead to become profitable. In the second quarter of 2021, it reported a $189 million loss, and it could be years from profitability.
Long term, I think Proterra has a chance to be disruptive in the industrial transportation market. But the stock will likely be volatile until industry adopts electrification. And even with billions of dollars of investment, that could be many years away.