Elon Musk’s Tesla Inc (NASDAQ:TSLA) will be among the major gainers in the event Joe Biden wins the US presidential election, CFRA senior equity analyst Garrett Nelson told Yahoo Finance in an interview Friday.
Nelson said that Tesla would be “one of the biggest winners” considering electric vehicles (EVs) are going to be heavily subsidized under a Biden administration.
The CFRA analyst pointed to Biden’s broad environmental plan that includes proposals that would massively expand tax credits for EVs as a way to incentivize the purchase of these vehicles. To further support electric cars, Biden, whose plan also sees a revival of the “Cash for Clunkers” program, has proposed adding more than 500,000 public charging stations by the end of 2030. As of March 2020, the US had approximately 25,000 charging stations for plug-in EVs.
In the final presidential debate held in Tennessee last week, the 76-year old former vice-president (VP) said the charging stations would lead to the United States owning “the electric car market of the future.”
“You’re looking at about a 20-fold increase in the number of EV charging stations, which would really help the electric vehicles in the adoption,” said Nelson.
Biden thinks his vision for EVs can tackle climate change – in fact, the former democratic VP believes the world must achieve net-zero greenhouse gas emissions as soon as possible, and no later than 2050 – and create new good-paying jobs.
Tesla shares were trading down by 1.81% at $413.55 at the time of publication Monday. The name fell 1.21% Friday and is up 542% year-over-year compared to the S&P 500’s 14% 52-wk gain.