The next step of President Joe Biden’s bold plan to boost the American electric vehicle (EV) market is underway.
Last week, Biden signed an executive order declaring that “America must lead the world on clean and efficient cars and trucks.”
Most of the order involves the Environmental Protection Agency and Department of Transportation.
The two agencies will establish new emissions and fuel-efficiency standards for gas-powered vehicles.
But a key part of the order is for EVs to account for 50% of all cars and trucks sold in 2030.
Only 2% of new U.S. automobile sales in 2020 were EVs, according to a report from the Pew Research Center.
That means Biden aims to go from 2% to 50% this decade!
We’re talking about the biggest change in transportation since cars replaced horses in the early 20th century.
Biden Is Going All-in on Electric Vehicles
In March, Biden proposed a massive $174 billion investment in EV manufacturers and projects.
Part of that plan was achieved on Tuesday when the Senate approved the $1 trillion bipartisan infrastructure bill.
The bill provides $7.5 billion for electric buses and ferries and another $7.5 billion for EV charging stations.
The rest of the funding could come this fall when the Senate votes on the $3.5 trillion infrastructure overhaul.
That boost would go a long way in helping the U.S. catch up to Europe and China in terms of EV adoption:
(Source: The Pew Research Center.)
Detroit automakers General Motors, Ford and Stellantis (the parent company of Chrysler) released a joint statement supporting Biden’s goal of 50% EV adoption by 2030.
The statement praises various aspects of Biden’s EV plan, including an incentive of up to $12,500 toward buying an American-made EV.
(Would a $12,500 credit motivate you to buy an EV? You can let us know by writing to SmartProfits@BanyanHill.com.)
A similar joint statement from foreign automakers BMW, Honda, Volkswagen and Volvo focused more on the plan’s environmental impact.
“We remain committed to leading the industry in fighting against climate change,” says the statement, which Ford is also a part of.
Asian automakers Hyundai, Nissan and Toyota also announced their support for the executive order.
Meanwhile, the United Auto Workers union and the Alliance for Automotive Innovation said the plan would help protect American manufacturing jobs.
A Winning Strategy for the EV Boom
It’s too early to tell which car companies will dominate the American EV market in the future.
Tesla currently has a big head start. But automakers around the world are pouring billions of dollars into EV research, development and production.
One thing’s for certain, though: The companies that provide the critical components for these automakers stand to make an absolute fortune.
Ian King recently highlighted one of these companies in his Strategic Fortunes service.
It’s an industry leader that already has contracts with many EV companies.
And as the U.S. speeds toward Biden’s target of 50% EV adoption, this company’s sales growth over the next several years could be enormous.
You don’t want to miss out on this once-in-a-lifetime opportunity. So, if you haven’t checked out Strategic Fortunes, you can do so now by watching Ian’s new presentation.
Assistant Managing Editor, Banyan Hill Publishing