The electric vehicle (EV) industry’s surge to the forefront of investor interest has been a long time coming. Pivoting worldwide to renewably fueled vehicles is a crucial step toward reducing humans’ carbon outputs. And now, the pioneers we have seen in Tesla (NASDAQ:TSLA) are being joined by competitors, and they’re rapidly accelerating market innovations. Lucid Motors (NASDAQ:LCID) stands to gain from this new focus, especially as the U.S. in particular takes interest in EVs. And after Biden’s new EV plans for the nation, LCID stock stands to win big.
Many an electric vehicle manufacturer are starting to see rapid gains. For example, Chinese automakers Li Auto (NASDAQ:LI), XPeng (NYSE:XPEV) and Nio (NYSE:NIO) are all in a position to move up in value; the Chinese government plans on using energy freed up from crypto mining restrictions to build thousands of new charging stations.
Meanwhile, the United States lags behind in the EV race; only about 2% of vehicle sales in the U.S. are electrics. However, the Biden administration is looking to turn this around — and quickly. Yesterday’s meeting of major automakers at the White House is bringing in a new era for the American auto industry.
LCID Stock Looks Appealing After Biden’s Executive Order
The president invited execs from GM (NYSE:GM), Ford (NYSE:F) and Stellantis (NYSE:STLA) to witness his signing of a new executive order. The order, a non-binding one, calls for half of all cars produced in America to be electric. It also sets a 2030 date for this goal.
Of course, these companies in attendance are all behind the eight ball regarding EV manufacturing. The legacy brands have been producing combustion-engine vehicles for decades, and a pivot to EVs will be an expensive ordeal. That’s why this news best benefits the new startups. Tesla obviously already produces electric vehicles as 100% of its lineup. As such, it has no catching up to do; rather, it’s setting the pace.
The order also primes the even newer up-and-comers for success within the decade. Lucid might be hindered during the rollout of its first vehicle, the Air sedan, because Tesla has the EV market cornered. But, this executive order will push consumers who might not have been interested in EVs toward products through incentives. As is seeks to be the premier luxury EV brand in the U.S., Lucid has a chance to carve out its own chunk of market share before other luxury automakers scramble to produce emissions-free models.
The day after Biden’s executive order is seeing LCID stock gain a fair amount. The stock is being lifted 3%.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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