Electric car stocks tumbled on Monday after Democratic Senator Joe Manchin refused to back President Joe Biden’s Build Back Better plan. provided significant benefits for buyers of electric vehicles.
Shares in electric vehicle startups like Lordstown Motors, Faraday Future and Nikola fell more than 7% during Monday trading, while shares in Rivian Automotive, which had a spectacular IPO last month, hit an all-time low of $ 88.40 per share price. paper. In the course of trading, shares of manufacturers such as Tesla and General Motors also fell. They are known to no longer be eligible for the federal electric vehicle sales tax incentive program, but could receive them through a new project.
Biden’s Build Better Than It’s plan proposes $ 12,500 per EV benefits. This is considered critical to stimulate demand for electric vehicles in the US, which so far are significantly more expensive than their ICE counterparts.
The Build Better than It Was Act is a key part of a broader infrastructure plan. According to the president, by 2030, half of the cars sold in the country should be electric, including hybrid variants with batteries and internal combustion engines. The overall strategy was to allocate $ 7.5 billion to build charging stations in the United States, but the Build Better Than It was considered the most important part of the strategy, which will no longer be implemented. In order for the bill to pass, there was a lack of the decisive vote of Democratic Senator Joe Manchin, who, according to some sources, quite unexpectedly for his party colleagues, spoke out against the initiative on Sunday.
The project provided for a tax deduction of $ 7,500 for the buyer of each electric vehicle, another $ 500 – if the battery was produced in the United States, and another $ 4,500 – if the vehicle was assembled in the United States by union members. The latter decision drew criticism from small automakers, in whose companies there are no unions.
Drop in EV stocks on Monday: