Joe Biden’s intention to support companies involved in the electric car production was severely criticized by the Senate. Against this background, shares of such firms showed a dramatic fall.
At the beginning of his presidency, Joe Biden presented the Build Back Better plan aimed at supporting the country’s economy. According to the document, the government intended to allocate significant sums of money to stimulate the growing e-vehicle sector. This, in turn, could have boosted consumer demand for this type of cars.
In the US, these environmentally friendly cars cost much more than cars with internal combustion engines. The White House was planning to allocate $12.5 thousand for the electric car construction. However, the initiative was banned by the Senate. This news led to a slump in the shares of e-vehicles producers. Thus, at the NASDAQ exchange, shares of the largest representatives of the sphere dropped. For example, the stock of Lordstown Motors tumbled by 8.1%, shares of Nikola Motor plummeted by 7.3%, whereas the share price of Faraday Future nosedived by 9.45%. Rivian Automotive, which offered its shares to the public only a month ago, recorded a new low of $88.4 in its share price. Curiously, such giants as Tesla and General Motors also lost their positions. Notably, the government was not planning to support these two companies. By 2030, the US authorities seek to make half of the new auto fleet electric.
