How the $2.5 Trillion Infrastructure Bill Could Send EV Stocks Soaring
- FN Media Group Presents Oilprice.com Market Commentary
LONDON, July 12, 2021 /PRNewswire/ -- Just days from now, Biden is set to gamble a proposed $2.5 trillion on a new plan, in hopes of bringing America's foundation into the next generation. It's coming in the form of the biggest infrastructure project since the highway system was built in the 1970s. But with today's massive infrastructure bill, most people might be missing the real story. Mentioned in today's commentary includes: Ford Motor Company (NYSE: F), NIO Inc. (NYSE: NIO), Li Auto Inc. (NASDAQ: LI), General Motors Company (NYSE: GM), Toyota Motor Corporation (NYSE: TM).
That's because typical "infrastructure" pieces like roads, highways, and bridges don't even make up the biggest part of the bill. Instead, billions more are planned to be spent on what will be driving on those roads instead.
That's why USA Today is saying, "Biden pushes the US electric vehicle revolution."
EV fans are calling it "a down payment on the future of transportation."
And CBS News just reported Biden's latest proclamation, "The future of the auto industry is electric. There's no turning back."
But while the massive $174 billion is expected to help push the EV industry past the tipping point and into the mainstream...This could be pocket change compared to the private money expected to follow into the industry...Which is why smart investors may be investing their money into the latest hot EV stocks, as Biden prepares to put the proposed $2.5 billion down in his big gamble.
Detroit Giants Still In The Running
The media buzz used to revolve entirely around Tesla, but lately that story has changed. Ford (F) recently made headlines with their announcement of their electric truck, the Ford F-150 Lightning.
With the F-150 being the best-selling vehicle in America for 39 years and running, this could be a huge turning point for the EV industry. And just days ago, Biden brought all eyes to the electric F-150 as he took it out for a ride at their motor plant in Dearborn, Michigan.
That was followed by nearly 45,000 reservations in 2 days from the hordes of people trying to get their hands on one. While many have high hopes because of the popularity of the F-150…The F-150 Lightning could see even greater success since it's helping overcome what's been one of the EV industry's biggest barriers in the past.
The extra cost has kept EVs mostly limited to the wealthy. But as the F-150 Lightning is set to be released with a price tag of $39,974, it'll be $16K cheaper than Tesla's new Cybertruck. And after federal tax credits and state incentives being poured in... It could be even cheaper than a gas-powered truck at this point. The Lightning is expected to hit the shelves coming in 2022, but there's another EV truck that will be coming even sooner...
Building An EV Ecosystem
Smart investors may be eyeing Facedrive (FD,FDVRF) as a promising name with solid potential upside, even after having a banner year last year.
Those who invested a year ago were able to more than double their money during a very tough year for most companies. But with a modest market cap compared to their competitors, we think there's still plenty of room for this fast-mover to grow in the coming months.
That's because the green ridesharing company has been making partnership deals and acquisitions left and right, and they show no signs of slowing down. And that's helped them to gain the attention of retail investing websites like Motley Fool and several others.
It seems that while Facedrive has been building up to this moment for years, it's coming into it at the perfect time. With the world finally re-opening after a year of lockdowns just as the EV rush is making headlines again, it's the perfect recipe for the success of green ridesharing.
Facedrive's signature ridesharing service allows riders to take their pick between catching a ride in an EV, hybrid, or gas-powered vehicle. But while ridesharing was where it all started, they've taken off in exciting new directions with the help of their unique verticals.
Today, they've spun the EV enthusiasm out into several apps with thousands of downloads...They've turned it into apparel partnerships with A-list celebrities Will Smith and Jada Pinkett-Smith...And they've even branched out to develop contact tracing technology being implemented by Air Canada and a Canadian provincial government, to help fight the spread of COVID-19.
This creative mindset helped them take a quick left turn when ridesharing hit some bumps in 2020, continuing to grow even while people were homebound. That's when they began making acquisitions within their Facedrive Foods delivery service.
The company says these acquisitions led them to start making thousands of contactless food deliveries, using electric vehicles to bring people gourmet meals from their favorite restaurants. And as that's steadily grown over the last year, the company reports they're now fulfilling over 5,000 deliveries per day on average. But Facedrive's latest big hit came thanks to their acquisition of Steer, the subscription-based EV model.
Now, instead of footing the $40,000 bill to get a new EV truck, customers can get in and drive their own at just a small fraction of that cost. After paying a monthly subscription fee similar to Netflix, Steer customers are able to take their pick from a line of high-end electric vehicles they can take home and use whenever they'd like.
They can drive it as their own for as long as they're a monthly subscriber. Or if they'd like to swap it out for another from their digital showroom, they can make a trade whenever they'd like. The company reports this unique new model has been a growing success in the last 9 months. So much so that they've gone from only operating in the Washington D.C. area to crossing the border and moving into Canada.
Steer just recently launched in Toronto, making their EV subscription model available to 2 of the biggest metro areas in North America. And after this initial phase, they're probably already planning next steps to expand over the rest of the United States and Canada.
The EV IPO To Watch
Rivian is another red-hot EV company making news lately because of their R1T truck. The R1T could soon start the wave of new EV sales as this new model is set to go public in June.
Rivian has already been making headlines over the last year thanks in part to their landmark deal with Amazon. Amazon has made it known that they plan to go electric with their delivery trucks.
They began testing Rivian trucks earlier this year. And they're expected to transition 10,000 of their vans to electric by 2022. That number could soar to over 100,000 vans by 2030.
If all goes well for Rivian, it could turn out to be a massive deal that would quickly make them one of the biggest names in the space. But while everyone's waiting on Rivian going public for their chance to invest...They remain private at the moment, with nothing but an enormous amount of speculation around when they'll IPO and give everyday folks a chance to profit in the process.
Other Giant Automakers Are Getting Into The Game
General Motors (GM) is one Detroit's old school automakers, and it's looking to catch a ride on the EV bandwagon, benefiting from a shift from gas-powered to alternative technology such as hydrogen and electricity. It's now well over 100 years old and has survived where many others have failed. Even with the downfall of Detroit, GM has persisted, and that's due in large part to its ability to adapt. In fact, GM's dive into alternative fuels began way back in 1966 when it produced the world's first ever hydrogen powered van. And it has not stopped innovating, either. It's now on path for an all-electric future.
Recently, GM dropped a bomb on the market with the announcement of its new business unit, BrightDrop. The company is looking to capture a key share of the burgeoning delivery market, with plans to sell electric vans and services to commercial delivery companies.
Toyota Motors (TM) for example, is a leader in the industry. Beginning with the Prius, Toyota has been on the cutting edge of green transportation for years and years. And now, it has developed a fuel cell system module and looks to start selling it after the spring this year in a bid to promote hydrogen use and help the world achieve carbon neutrality goals, the world's largest car manufacturer said in February. According to Toyota, the new module can be used by companies developing fuel cell (FC) applications for trucks, buses, trains, and ships, as well as stationary generators.
Chinese EV Companies Making Major Moves
Nio Limited (NIO) is one of Tesla's most exciting new competitors, dominating the Chinese EV markets. After a rough start after going public in 2018, it's been on a tear, producing vehicles with record-breaking range.
Just a year ago, no one could have imagined how successful the Nio was going to be. In fact, many shareholders were ready to write off their losses and give up on the company. But China's answer to Tesla's dominance powered on, eclipsed estimates, and most importantly, kept its balance sheet in line. And it's paid off. In a big way.
Li Auto (LI) is another up-and-comer in the Chinese electric vehicle space. And while it may not be a veteran in the market like Tesla or even NIO, it's quickly making waves on Wall Street. Backed by Chinese giants Meituan and Bytedance, Li has taken a different approach to the electric vehicle market. Instead of opting for pure-electric cars, it is giving consumers a choice with its stylish crossover hybrid SUV. This popular vehicle can be powered with gasoline or electricity, taking the edge off drivers who may not have a charging station or a gas station nearby.
Though it just hit the NASDAQ in July of last year, the company has already seen its stock price more than double. Especially in the past month during the massive EV runup that netted investors triple digit returns. It's already worth more than $30 billion but it's just getting started. And as the EV boom accelerates into high-gear, the sky is the limit for Li and its competitors.
By. Julian Lowe
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
Forward-Looking Statements
This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that the demand for ride sharing services will grow; that Steer can help change car ownership in favor of subscription services; that new tech deals will be signed by Facedrive and deals signed already will increase company revenues; that Facedrive will achieve its plans for manufacturing and selling Tracescan devices; that Facedrive will be able to expand to the US and globally; that Facedrive will be able to fund its capital requirements in the near term and long term; and that Facedrive will be able to carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that riders are not as attracted to EV rides as expected; that competitors may offer better or cheaper alternatives to the Facedrive businesses; changing governmental laws and policies; the company's ability to obtain and retain necessary licensing in each geographical area in which it operates; the success of the company's expansion activities and whether markets justify additional expansion; the ability of the company to attract drivers who have electric vehicles and hybrid cars; and that the products co-branded by Facedrive may not be as merchantable as expected. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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