Senator Joe Manchin has said he will vote ‘no’ for President Biden’s Build Back Better act. The plan, which had allocated billions for incentivizing electric vehicle (EV) production and sales, could have significantly boosted the industry. With the spending plan dropped and the persisting supply chain disruptions, it might be best to avoid EV stocks Tesla (NASDAQ:TSLA), Rivian (RIVN), Lucid Group (LCID), and Fisker (FSR).Democratic Senator Joe Manchin from West Virginia has decided to vote ‘no’ on the Build Back Better act, pulling the plug on the negotiations on the present version of the legislation expanding the country’s social safety net. Senator Manchin has shared his concerns over certain provisions of the $1.9 trillion spending plan and that it may exaggerate inflation.
The negative vote on the bill puts the Biden administration’s ambitious climate goals on hold. The package allocated more than $300 billion tax incentives for electric vehicles (EVs) and other clean energy measures. In addition, the bill also included a $12,500 refundable tax credit for EV purchases. However, in the present situation, for the bill to pass, every Democrat needs to vote ‘yes’ on it, as there is no Republican support for it.
On the other hand, the semiconductor shortage and the supply chain woes are expected to put pressure on company profits. Thus, EV stocks Tesla, Inc. (TSLA), Rivian Automotive, Inc. (RIVN), Lucid Group, Inc. (LCID), and Fisker Inc. (FSR) might be best avoided now.