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4 Stocks in Focus on Biden's Bold Electric Fleet Targets
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As we know, U.S. President Joe Biden considers climate change as one of the top priorities of his administration and is highly optimistic about the power of green vehicles to battle the growing climate concerns.
Biden signed an executive order yesterday, which entails a 65% reduction in carbon emissions by 2030 and eventually carbon neutrality from overall federal operations by 2050. Pressing ahead in the transition to electric vehicles (EV), Biden’s latest directive necessitates the purchase of only zero-emission vehicles for the federal fleet by 2035. In fact, the 46th President of the United States has pledged to make all light-duty government fleets emission free by 2027.
The White House will be spending billions of dollars for the expansion of its federal fleet of EVs, upgrade of buildings and addition of more clean electricity to the country’s grid. Per the White House Fact Sheet, the government will spend its annual purchasing power of $650 billion to enhance the efficiency of its portfolio of 300,000 buildings and electrify its fleet of around 600,000 cars and trucks.
Just last month, Congress passed a $1.2-trillion infrastructure bill, which earmarked $7.5 billion toward the establishment of a nationwide network of EV charging stations and another $5 billion for zero/low emissions busses. In a bid to accelerate the transformation of its fleet into the largest zero-emission vehicle fleet in the nation, the government will be working closely with American vehicle manufacturers, battery makers and charging equipment installers.
The latest order calls for all federal fleet purchases to be zero-emission vehicles by 2035 and the development of necessary infrastructure to support them is a welcome news for green vehicle makers, EV charging and battery companies as well as the legacy automakers who are revving up investments to transition into an electrified future. Below we highlight four stocks, General Motors (GM - Free Report) , Ford (F - Free Report) , Rivian Automotive (RIVN - Free Report) and ChargePoint Holdings (CHPT - Free Report) , that should be on your watchlist for long-term gains as the EV revolution gains momentum. Each of these stocks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
General Motors: This auto biggie is pulling out all the stops to demonstrate EV efficiency. General Motors has adopted an “all-in” electrification strategy, whereby it will gain a competitive edge in batteries, software, vehicle integration, manufacturing and customer experience to make EVs the key catalyst for boosting profitability. The company is expediting plans to roll out electric cars and trucks over the next five years and projects to spend $35 billion by 2025 on the initiative.
With the BrightDrop delivery business rollout, General Motors is able to capitalize on the surging demand for urban last-mile delivery while reducing carbon impact on the planet. It has provided a one-stop-shop solution for commercial customers, enabling them to deliver goods in an efficient and more sustainable manner. This business unit has unlocked fresh opportunities for GM while expanding the Ultium platform. The company has a long-term expected EPS growth rate of 9.9%.
Ford: Ford’s big push toward the development of electric vehicles is truly commendable. Planned spending of around $30 billion by 2025 and the target of 40% of its global vehicle volume to become all-electric by the end of the decade are likely to cement its position in the red-hot EV landscape. Ford’s Mustang Mach E is already a hit among consumers. The Department of Homeland Security will begin field testing the Ford Mustang Mach-E in early 2022 for use in its law enforcement fleet. Upcoming launches like F-150 Electric, Maverick hybrid pickup and the E-Transit are set to drive the firm’s top line.
Ford’s proprietary software and hardware stack named Blue Oval Intelligence, joint venture deals with SK innovation and LG Chem, Electriphi buyout, and establishment of Ford Ion Park will further rev up its e-mobility capabilities and battery technology. Via collaboration with Electrify America, the firm’s FordPass Charging Network provides access to DC fast chargers. F has a long-term expected EPS growth rate of 9.85%.
Rivian: EV startup Rivian made its NASDAQ debut last month and was the fifth biggest U.S. IPO of all time. Rivian unveiled prototypes of all-electric R1T truck and R1S SUV at the LA Auto Show in late 2018. It started deliveries of R1T pick-up truck this September, being the first company to bring an electric pick-up to the market. Amazon’s order of 100,000 last mile-delivery vehicles by Rivian through 2024, as part of the effort to decarbonize its logistics fleet, generated a huge buzz. Last month, Rivian suggested plans to sell electric delivery vans to commercial fleet customers other than Amazon by 2023, which is set to boost prospects. It is expected to sell fleet versions of the R1T electric pickup truck and R1S electric SUV.
Rivian plans to establish its own network of charging stations and offer charging spots in hotels and other locations. In its IPO filing, Rivian indicated that it had secured 24 Rivian Adventure Network direct current fast-charging sites in seven states and 145 Rivian Waypoints charging sites in 30 states. RIVN anticipates selling its EVs first in the United States and Canada and plans to expand to Western Europe, followed by the Asian-Pacific markets.
ChargePoint: ChargePoint is one of the major charging networks in the world, holding leading positions in the commercial and fleet segments. The company, which made its NYSE debut in March 2021, has more than 150,000 charging ports and a 70%+ market share. Given the rising penetration of EVs and Biden’s ambitious electrification targets, ChargePoint’s prospects are shining. The recent acquisitions of has·to·be and ViriCiti along with ChargePoint’s existing broad portfolio of charging infrastructure solutions provide the company with a complete set of solutions for electrified fleets in Europe and North America, thereby fortifying its leadership position in the EV charging market.
The fleet management solution, AC and DC fast charging solutions, balance charging costs with operational readiness for fleets of all sizes make ChargePoint one of the best choices for efficient and rapid electrification of any fleet. CHPT’s revenues for the last reported quarter rose 79% year over year. The company also raised its fiscal 2022 revenue guidance to $235-$240 million from $225-$235 million.
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4 Stocks in Focus on Biden's Bold Electric Fleet Targets
As we know, U.S. President Joe Biden considers climate change as one of the top priorities of his administration and is highly optimistic about the power of green vehicles to battle the growing climate concerns.
Biden signed an executive order yesterday, which entails a 65% reduction in carbon emissions by 2030 and eventually carbon neutrality from overall federal operations by 2050. Pressing ahead in the transition to electric vehicles (EV), Biden’s latest directive necessitates the purchase of only zero-emission vehicles for the federal fleet by 2035. In fact, the 46th President of the United States has pledged to make all light-duty government fleets emission free by 2027.
The White House will be spending billions of dollars for the expansion of its federal fleet of EVs, upgrade of buildings and addition of more clean electricity to the country’s grid. Per the White House Fact Sheet, the government will spend its annual purchasing power of $650 billion to enhance the efficiency of its portfolio of 300,000 buildings and electrify its fleet of around 600,000 cars and trucks.
Just last month, Congress passed a $1.2-trillion infrastructure bill, which earmarked $7.5 billion toward the establishment of a nationwide network of EV charging stations and another $5 billion for zero/low emissions busses. In a bid to accelerate the transformation of its fleet into the largest zero-emission vehicle fleet in the nation, the government will be working closely with American vehicle manufacturers, battery makers and charging equipment installers.
The latest order calls for all federal fleet purchases to be zero-emission vehicles by 2035 and the development of necessary infrastructure to support them is a welcome news for green vehicle makers, EV charging and battery companies as well as the legacy automakers who are revving up investments to transition into an electrified future. Below we highlight four stocks, General Motors (GM - Free Report) , Ford (F - Free Report) , Rivian Automotive (RIVN - Free Report) and ChargePoint Holdings (CHPT - Free Report) , that should be on your watchlist for long-term gains as the EV revolution gains momentum. Each of these stocks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
General Motors: This auto biggie is pulling out all the stops to demonstrate EV efficiency. General Motors has adopted an “all-in” electrification strategy, whereby it will gain a competitive edge in batteries, software, vehicle integration, manufacturing and customer experience to make EVs the key catalyst for boosting profitability. The company is expediting plans to roll out electric cars and trucks over the next five years and projects to spend $35 billion by 2025 on the initiative.
With the BrightDrop delivery business rollout, General Motors is able to capitalize on the surging demand for urban last-mile delivery while reducing carbon impact on the planet. It has provided a one-stop-shop solution for commercial customers, enabling them to deliver goods in an efficient and more sustainable manner. This business unit has unlocked fresh opportunities for GM while expanding the Ultium platform. The company has a long-term expected EPS growth rate of 9.9%.
Ford: Ford’s big push toward the development of electric vehicles is truly commendable. Planned spending of around $30 billion by 2025 and the target of 40% of its global vehicle volume to become all-electric by the end of the decade are likely to cement its position in the red-hot EV landscape. Ford’s Mustang Mach E is already a hit among consumers. The Department of Homeland Security will begin field testing the Ford Mustang Mach-E in early 2022 for use in its law enforcement fleet. Upcoming launches like F-150 Electric, Maverick hybrid pickup and the E-Transit are set to drive the firm’s top line.
Ford’s proprietary software and hardware stack named Blue Oval Intelligence, joint venture deals with SK innovation and LG Chem, Electriphi buyout, and establishment of Ford Ion Park will further rev up its e-mobility capabilities and battery technology. Via collaboration with Electrify America, the firm’s FordPass Charging Network provides access to DC fast chargers. F has a long-term expected EPS growth rate of 9.85%.
Rivian: EV startup Rivian made its NASDAQ debut last month and was the fifth biggest U.S. IPO of all time. Rivian unveiled prototypes of all-electric R1T truck and R1S SUV at the LA Auto Show in late 2018. It started deliveries of R1T pick-up truck this September, being the first company to bring an electric pick-up to the market. Amazon’s order of 100,000 last mile-delivery vehicles by Rivian through 2024, as part of the effort to decarbonize its logistics fleet, generated a huge buzz. Last month, Rivian suggested plans to sell electric delivery vans to commercial fleet customers other than Amazon by 2023, which is set to boost prospects. It is expected to sell fleet versions of the R1T electric pickup truck and R1S electric SUV.
Rivian plans to establish its own network of charging stations and offer charging spots in hotels and other locations. In its IPO filing, Rivian indicated that it had secured 24 Rivian Adventure Network direct current fast-charging sites in seven states and 145 Rivian Waypoints charging sites in 30 states. RIVN anticipates selling its EVs first in the United States and Canada and plans to expand to Western Europe, followed by the Asian-Pacific markets.
ChargePoint: ChargePoint is one of the major charging networks in the world, holding leading positions in the commercial and fleet segments. The company, which made its NYSE debut in March 2021, has more than 150,000 charging ports and a 70%+ market share. Given the rising penetration of EVs and Biden’s ambitious electrification targets, ChargePoint’s prospects are shining. The recent acquisitions of has·to·be and ViriCiti along with ChargePoint’s existing broad portfolio of charging infrastructure solutions provide the company with a complete set of solutions for electrified fleets in Europe and North America, thereby fortifying its leadership position in the EV charging market.
The fleet management solution, AC and DC fast charging solutions, balance charging costs with operational readiness for fleets of all sizes make ChargePoint one of the best choices for efficient and rapid electrification of any fleet. CHPT’s revenues for the last reported quarter rose 79% year over year. The company also raised its fiscal 2022 revenue guidance to $235-$240 million from $225-$235 million.