What happened
Sometimes stocks take a breather the day after getting a pop. Shares of electric vehicle (EV) charging network company Volta (VLTA +0.00%) soared almost 20% yesterday on no company-specific news, as the sector got a tailwind from the passage of a federal infrastructure bill. But Volta isn't giving those gains back today, and in fact, it jumped more than 13% in early trading Tuesday. As of 11:50 a.m. EST, Volta shares are still up 4.1% on the day.
So what
Virtually the entire EV sector soared yesterday in reaction to the vote Friday night in the House of Representatives that finally passed a bipartisan infrastructure bill that has been at the center of much political wrangling. That bill includes $7.5 billion specifically allocated to build out charging infrastructure to promote electric vehicle ownership.
Image source: Getty Images.
That spending is likely to benefit Volta, which locates its charging stations near commercial centers including shopping centers, stadiums, movie theaters, and grocery stores. Each of its chargers includes a large monitor where local businesses can advertise to consumers.
Now what
The screens allow movie theaters to display upcoming show times or movie trailers, shopping malls and grocery stores to advertise stores or highlight sales items, and municipalities to provide community messages. Volta brings in additional income from the advertisements, and businesses can advertise right at the point of consumer spending.
The infrastructure investments should help the company grow its network. And investors continued to buy into the stock today in anticipation of what the company has to say in its next financial update, scheduled for tomorrow after the market closes.
