Electric vehicle stocks fall after Manchin Biden rejects Biden’s climate and social plan

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The Rivian R1T on stage as a finalist 2022 Truck of the Year at the LA Auto Show in Los Angeles, California on November 17, 2021.

Frederic J. Brown | AFP | Getty Images

Electric vehicle company stocks plummeted on Monday after President Joe Biden’s “Build Back Better” plan, which provides significant incentives for the growing sector, apparently failed.

The stocks of EV startups like Lordstown Motors, Faraday Future and Nikola all lost more than 7% on Monday. Rivian Automotive, which went public last month through a blockbuster IPO, hit a new low of $ 88.40 per share on Monday.

Shares in other automakers like Tesla and General Motors – both of which would no longer qualify for federal electric vehicle tax credits but would have under Build Back Better – also lost ground during the trading session.

The EV incentives under the Build Back Better plan are up to $ 12,500 per vehicle and are seen as critical to fueling consumer demand for EVs that are far more expensive than their traditional internal combustion counterparts.

Traffic officials have touted the Build Back Better legislation along with the new infrastructure package as an important part of Biden’s plan to meet the president’s electric vehicle sales target. Biden has announced that half of all new vehicles sold by 2030 will be electric vehicles, including plug-in hybrid electric vehicles with electric vehicle batteries and traditional internal combustion engines.

Biden’s bipartisan infrastructure package allocated $ 7.5 billion for EV chargers, but Wall Street had given more prominence to the Build Back Better incentives, which now likely won’t pass. West Virginia Democratic Senator Joe Manchin effectively condemned the bill on Sunday, saying he would not vote for it in the 50-50 Senate.

The proposed Build Back Better EV incentive included a current tax credit of $ 7,500 for buying a plug-in electric vehicle, plus $ 500 if the vehicle’s battery is made in the U.S. Union Work, the fierce criticism from non-Detroit – attracted car manufacturers whose American workers are unorganized.

Here’s a look at several EV startups as well as Tesla and legacy automakers GM and Ford Motor, both of which have announced significant investments in electric vehicles.

EV stocks down after Build Back Better stalemate

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