Biden’s infrastructure plan was blocked, electric car stocks plummeted across the board

Shares of US-listed electric vehicle companies plummeted across the board on Monday after US President Biden’s “Build Back Better” bill was met with resistance, which included major incentives for the growing electric vehicle industry.

As of Monday's close, Lordstown Motors was down 8.15%, Faraday Future was down 9.5%, Nicolas was down 7.31%, and Lucid was down 5.15%. Rivian Automotive, which went public last month, fell 7.9% to close at $89.98. Chinese concept stock Weilai Auto fell 6.13%.

Shares of other automakers such as Tesla and General Motors also fell. Although the two automakers are no longer eligible for the federal electric vehicle tax credit, they will be eligible under the Build Back Better program. .

According to the plan, electric vehicles can enjoy incentives of up to USD 12,500 per vehicle, which is regarded as a key factor in stimulating consumer demand for electric vehicles, because the current price of electric vehicles is still much higher than that of traditional internal combustion engine models.

Article excerpted from the US Stock Research Agency