Electric cars are expected to fill US roads, but only with government subsidies. Whether they take over in the next decade or appear more slowly depends on the winner of the election.
Democratic candidate Joe Biden’s plan for the industry includes building more than half a million charging stations by 2030. He is committed to restoring full EV tax credit and will push for stricter overall auto regulations. More may spur consumers toward light cars, SUVs and trucks. .
President Donald Trump has loosened fuel emission standards and plans to build a smaller number of charging facilities. His approach will support the fossil fuel industry and some Republicans say it will be friendlier to the US wallet. When the federal electric car tax credits established by GM expire and are applied to the Tesla TSLA,
in March, the Trump administration blocked efforts to extend them. The White House has not signaled further EV support in the near future.
Read: Markets are turning to green energy away from dependence on oil and gas regardless of election winner – how fast the difference is
Subsidies are still key to a growing market.
“Electric cars need to be less expensive to compete. Joe Wiesenfelder, the executive editor at Cars.com, said that when they existed today, they would never have made sense in the market without subsidies.
“We anticipate there will be a clear difference in the market if Vice President Biden takes office,” he said. “If President Trump is re-elected, the EVs could once again falter or even retreat as they did under other Republican administrations.”
However, analysts say, if given four more years, Trump may have to adapt to an auto industry where the writing on the wall is visible: consumer habits are changing. change.
Read: Fracking and the ‘Green New Deal’: Here’s Trump and Biden’s views on climate change
If market performance is any indication, the stock market has been up against politics all year long – and in favor of an EV expansion. EV shares have been the news this year. Shares of the pioneering Tesla have risen more than 370% so far in 2020. They have gathered an extra round of analysts’ upgrade, though it is not without controversy over whether the credits emerge. Are emissions and non-purely profit potentials enhancing stock value.
In the shadow of Tesla, the Fisker FSR,
had a solid exchange debut, a move accompanied by news of plans to begin production of the Fisker Ocean SUV in 2022. International rivals are making waves of their own. Shares of Nio Inc. NIO,
to a record high after the China-based manufacturer reported October deliveries doubled. And Detroit is the headquarters of GM GM,
and Ford F,
have their own EV offerings, but it’s an expansion that is currently largely funded by traditional SUV profits.
Related: Fisker going public: Five things to know about the electric car maker before its IPO
According to Bloomberg New Energy Finance, the Trump administration has relaxed Obama-era targets and minimal support for electric vehicles, calling for 5% of US car sales to be electric vehicles for any year from 2022 to 2026.
According to Bloomberg NEF analysts, led by Aleksandra O’Donovan, under Biden’s proposed target for emissions, the EV market share in passenger car sales will have to reach at least 25% by 2026, with sales of electric cars reach 4 million units per year. recent reports.
“A Biden victory, coupled with Democrats taking control of the Senate, has the potential to change the trajectory of electric vehicle adoption for years, while also reversing some of the damage caused by the current administration. cause, ”said O’Donovan and team. Some races into the razor-thin Senate have left the room, now under Republican control, too close to call before Tuesday.
One in two presidential winners may be facing a Mixed Congress, but one that increasingly wants some progress on climate change and realizes younger buyers’ interest in cars. electricity. The majority of voters, including Republican women, black voters and younger voters, consider climate change a priority for both the next administration and Congress. An Economist / YouGov poll from the end of last month found that climate is the number three issue for all voters and number two for Democrats and young voters aged 18-29. .
Cars.com’s Wiesenfelder says Biden’s focus on electric vehicles and environmental policies could also be pushed further as Democratic governors apply more energy behind these efforts at the level. local. He pointed to California Governor Gavin Newsom and his ambitious statement banning the sale of new gasoline-powered vehicles by 2035.
RB00 energy prices,
has tended to be lower, in part because US output is more to compete with OPEC. After that, COVID-19 reduced demand and further reduced prices.
Last year, Cars.com predicted that electric cars will be difficult to become mainstream in the US and even by 2030.
Read: GM and Ford knew about climate change 50 years ago, the energy trade publication revealed
It is Biden’s deeper climate policy portfolio that could change that, even if not overnight, analysts say.
Biden will provide dedicated grants and grants to help manufacturers retrofit and build new plants “to help secure the United States’ global lead in electric vehicle production, including electric vehicle parts and batteries, “said the candidate.
Notably, not all offers and incentives have been without criticism, which could complicate matters for Biden if he prevails. Public charging stations can be useful, but for now, it’s consumer preference to charge at home.
“And well-intentioned interventions can go wrong, for example when a $ 7,500 federal tax credit for 100,000 EV buyers, insulting allies and competitors,” Wiesenfelder said. .