While senators continue to wrestle and try to iron out all of the details of the nearly $1 trillion bipartisan infrastructure plan, we know for a fact that the first phase of President Joe Biden’s infrastructure plan calls for $550 billion in new spending over the next five years.
And this money will mainly be used on road, water works, broadband and electric grid improvements.
But don’t forget that this bill was only finalized Aug. 1 and must make its way through an evenly split Senate and Democrat-leaning House.
This is of course causing action on the infrastructure bill to slow to a crawl as both parties argue over more than 250 proposed amendments.
Of the amendments, there is now a proposed $7.5 billion for electric vehicle (EV) charging stations — which will be the first time the U.S. has ever invested in EV chargers. However, the bad news is that it’s only half of what Biden originally wanted, which was to design a national network of about 500,000 EV charging stations.
But the good news is that some EV stocks can still benefit from Biden’s infrastructure plan — even with the amendments.
So let’s take a look at a previous video from WealthPress Senior Strategist Roger Scott on how Biden’s infrastructure plan benefits EVs and see if any of the stocks are still holding strong today.
How Joe Biden’s Infrastructure Plan Could Still Benefit EVs
Biden’s plan still faces an uphill battle on Capitol Hill. Even before the reveal in Pittsburgh, Republicans have been voicing concerns about the proposal’s cost… And the corporate tax hikes needed to pay for it.
Originally, the Biden administration wanted to raise corporate taxes from 21% to 28%, set by former President Donald Trump’s 2017 tax law.
That’s why we have to be cautious and not make moves that’ll come back to bite us in the end. We have to select each EV stock individually instead of relying on the entire sector as a whole.
In fact, numerous pot stock investors ignored that approach, and they’re still waiting for some of those penny stocks to recover.
So Roger wants to make sure we’re only putting our money into EV stocks that Biden’s infrastructure plan benefits. That’s especially important when investors and traders are rotating into less speculative names, and instead into stocks based on actual value.
The best way to take advantage of an increase in EV growth is to invest in industrial companies that are just getting into the space right now instead of investing in beaten-down stocks like Tesla Inc. (Nasdaq: TSLA), which is highly speculative right now.
The EV stocks Biden’s infrastructure plan benefits will not only see a boost because of the increase in demand for the vehicles themselves, but also because they’re grounded in Industrials and basic Materials, which are both defensive sectors that are rising at the moment.
So check out Roger’s video below to see how Joe Biden’s infrastructure plan could still benefit EVs, and which two you might want to target. Be sure to leave your thoughts in the comments section below.
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