US EV companies rally after Biden announces electric fleet plans for the federal government
- Shares of American EV manufacturers are roaring higher on Tuesday after President
Bidenannounced the federal fleet is going electric.
- Shares of
WorkhorseGroup, Nikola, and Lordstown Motorsall jumped double digits after the news broke.
- The US federal fleet is made up of 645,000 vehicles which cost taxpayers some $387 million in fuel costs in 2019.
US-based EV companies are rallying on Tuesday after President Biden announced the entire federal vehicle fleet will go electric with American-made products.
"The federal government also owns an enormous fleet of vehicles, which we're going to replace with clean
Additionally, according to the Federal Fleet Report, the federal government spent over $386 million on fuel costs to run the fleet in 2019 alone.The move by the Biden administrations continues the EV boom
Now American EV manufacturers are seeing a spike in share prices after Biden's announcement. Workhorse Group, Nikola, and Lordstown Motors saw their shares spike as much as 30%, 15%, and 19%, respectively.
Workhorse group may have benefitted more than its peers because the company was already in talks with the USPS to provide delivery vans, but the process stalled. Now investors are hoping the contract will be picked up again, and shares are responding.Shares of Workhorse traded at $31.62 as of 11:50 am EST, giving the company a $2.98 billion market cap.
While shares of Nikola traded at $23.77 and shares of Lordstown Motors traded at $26.99.
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