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London – May 12, 2021 – After pouring trillions of dollars into the economy over the past 6 months, Biden’s new plan could further light the fuse on the EV markets. That’s because his proposed $2 trillion infrastructure bill is expected to cover much more than just roads and bridges. Under the current proposal, $174 billion would go directly to the EV sector, helping the United States finally cut into China’s massive lead in this booming industry. Mentioned in today’s commentary includes: Blink Charging Co. (NASDAQ: BLNK), ChargePoint Holdings, Inc. (NYSE: CHPT), Fisker Inc. (NYSE: FSR), XPeng Inc. (NYSE: XPEV), Li Auto Inc. (NASDAQ: LI).
Today, only about 2 percent of all new cars in the U.S. run on electricity. But with Biden’s new plan, the auto industry is expecting that half of all new cars will be electric within the next decade.
Here’s why…
- It’ll put 500,000 EV charging stations into place over the next decade.
- It’ll electrify 20% of the nearly 500,000 US school buses.And it’s already begun, starting with his pledge to replace the federal government’s 650,000 vehicle motor pool with EVs.
That’s why Vox is saying, “Biden wants to give electric cars a huge boost.”
LA Times is saying, “Biden aims to make the US an EV powerhouse.”
And Bloomberg is weighing in on where we’re headed next, predicting, “Tesla isn’t the biggest winner from Biden’s EV plan.”
With the $174 billion set to tackle everything from retooling factories to rebuilding supply chains here in the United States, many expect this windfall will give smaller companies a major boost. And 3 industries could benefit from this huge investment in infrastructure.
The Green Ecosystem
Facedrive (FD.V; FDVRF) is not an EV manufacturer, but it looks poised to become a player in the growing EV industry after their fast ascension last year.
They’re growing in part thanks to the popularity of their eco-friendly ridesharing model, which sets aside a portion of each ride’s fare to offset the carbon footprint of the trip. And the success of their food delivery service has also given them a boost. After two major acquisitions to grow their customer base and partnerships last year, they’re now serving 280,000 active users on their food delivery platforms.
That’s come out to over 5,000 meal deliveries every day. And it’s still growing. With a recent addition, they’ve increased their order count in some areas by a phenomenal 392% in just 3 weeks.
You’d be hard-pressed to find that kind of growth anywhere else on the markets, especially from a little-known company like Facedrive. But a key acquisition from September may be their biggest yet. That’s because they’ve acquired the EV subscription service leader, Steer, from the subsidiary of the $45 billion clean energy giant, Exelon.
With Steer, subscribers can take their pick from a selection of EVs including luxury EVs in their digital showroom…And with a simple monthly subscription, customers can use these high-end vehicles as their own for as long as they’re a subscriber (or swap it out for another whenever they choose).
It’s already jumped in popularity in Washington D.C. But in recent months, it’s now expanded to another major metro area across the border in Toronto.
Thanks to their partnerships and major acquisitions, Facedrive has set themselves apart from the competition. And they could soon reap the rewards as the EV boom gets a boost with Biden’s $174 billion EV investment.
Electric Vehicle Charging Infrastructure
At this point, the demand for electric vehicles has been ramping up steadily for years. But as we’re approaching the tipping point, we’ve seen a major problem take shape.
The Department of Energy is reporting that there are about 3 gas stations in place today for every EV charging station. So as electric vehicles are set to take over the markets and become the vehicle of the future, we’ll need far more charging stations than we have today.
That’s why Biden’s plan would establish grant and incentive programs, helping build a half-million charging stations over the next decade. And that’s where Chargepoint (NYSE:CHPT) comes in, one of the largest charging station networks in the country.
This leading EV infrastructure player went public just a few months ago through one of the market’s hottest trends. That made them the first EV charging stock to have gone public via a reverse merger with a special purpose acquisition company, or SPAC.
As of September 2020, they’ve now built over 114,000 charging stations around the world. But with over 90 million charges delivered, they’re continuing to expand by delivering solutions for large fleets and businesses like VW, for example.
When it comes to the supercharged Level 2 EV charging stations, ChargePoint is the clear leader in the industry. While Level 1 stations allow you to charge a Mercedes B Class 250e in around 20 hours…Level 2 chargers cut that down to just 3 hours to fully charge that same vehicle. That’s a massive difference for people worried about having to spend nearly a day charging their vehicles before getting back on the road. And ChargePoint has a whopping 73% of the market share of networked Level 2 charging stations.
For that reason, it’s worth taking a hard look at ChargePoint as Biden’s plans look to expand the EV charging station networks.
Blink Charging (NASDAQ:BLNK), another, electric vehicle charging company, will also play a vital role in the lithium market for years to come. Why? Because its charging infrastructure will fuel even greater demand for the increasingly popular metal. And it’s been a great stock for investors, as well. It’s seen its share price soar significantly over the past year and it’s showing no signs of slowing. A flurry of new deals, including a collaboration with EnerSys have created some support for the relative newcomer.
Michael D. Farkas, Founder, CEO and Executive Chairman of Blink noted, “This is an exciting collaboration with EnerSys because it combines the industry-leading technologies of our two companies to provide user-friendly, high powered, next-generation charging alternatives. We are continuously innovating our product offerings to provide more efficient and convenient charging options to the growing community of EV drivers.”
Another high-profile deal between Blink and Envoy Technologies to deploy electric vehicles and charging stations adds further support to the company’s stock price.
Aric Ohana, CEO of Envoy noted, “We’re excited to work with Blink on the deployment of their fast Level 2 charging stations as part of our exclusive electric car-sharing service. The vision of our two companies is aligned: to advance the adoption of electric vehicles. To continue to drive the growth and success across our expanding locations, we have to ensure that our clients have easy and efficient access to high-quality, reliable charging equipment. Blink has an established reputation as an innovator in the EV market, and we are thrilled to add them as a preferred partner.”
Electric Vehicle Adoption
Tesla has come to be known in the markets for catering to high-end customers looking for a luxury EV. But that’s left a gaping hole in the market for those that everyday folks can afford. And if electric vehicles are expected to become mainstream, prices will have to be competitive with the gas-powered vehicles on the market today to make the switch.
That massive market opportunity is where Fisker (NYSE:FSR) is setting its sights. After cutting his teeth as a designer for BMW and Aston Martin, Henry Fisker is now planning to bring that industry-leading experience to everyday folks.
His first vehicle to come to market will be the electric SUV, the Ocean, next year. But Fisker’s production process will also be completely different from Tesla’s
After seeing the headaches that have come Tesla’s way from running their own manufacturing, Fisker will instead outsource to experts who already have a proven process in place. That will help avoid not just quality control issues, but also the problems that come with having to build your own factories to get things up and running.
That’s why they’ve called on Magna International to build the Fisker Ocean. Magna International is the same company that builds cars for major automakers like BMW, Toyota, Mercedes-Benz, and others. And now, many are keeping their eyes on Fisker as they’re set to make EVs suited for a broader customer base.
China isn’t letting the EV boom pass it by, either. XPeng Motors (NYSE:XPEV) is a newcomer in the Chinese electric vehicle boom. Though it only recently went public in the U.S., it’s taken the market by storm. Riding on the coattails of the success of Tesla and NIO, it has carved out its own demand, especially among the younger generation of traders looking for the next big company to blow.
Since its NYSE debut in August, the ambitious electric vehicle company has risen by more than 107% thanks to its promising financials and growing demand for its stylish vehicles.
In addition to retail interest, Xpeng has also received a ton of interest from Big Money. Earlier this year the company raised over $500 million from the likes of Aspex, Coatue, Hillhouse Capital and Sequoia Capital China, and even more recently, secured another $400 million from heavy hitters such as Alibaba, Qatar Investment Authority and Abu Dhabi’s sovereign wealth fund Mubadala.
As the demand for electric vehicles continues to grow, newcomers like Xpeng provide an excellent opportunity for investors to jump on this undeniable trend even if the missed out on Tesla’s meteoric rise to glory.
Li Auto (NASDAQ:LI) is another ambitious company looking to make a dent 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 Li just hit the NASDAQ in July, 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. Glen Newman
**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 and EV subscription services will grow; that Steer can help change car ownership in favor of subscription services; that Biden’s infrastructure spending will help increase Facedrive revenues; 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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