The efforts worldwide to gradually phase out fossil-fuel-powered vehicles make the EV industry’s prospects bright. However, Democratic Sen. Joe Manchin’s ‘no’ position on President Biden’s Build Back Better Act makes the domestic EV industry’s prospects bleak. Therefore, we think it is better to avoid fundamentally weak EV charging stocks ChargePoint (CHPT), Blink Charging (BLNK), and EVgo (EVGO) because they could witness a downtrend in the near term.Last month, the U.S. House of Representatives passed the $1.75 trillion Build Back Better Act, which includes tax incentives of up to $12,500 per vehicle to spur consumer demand for electric vehicles (EVs). This initiative was formulated to reduce greenhouse gas emissions and achieve climate targets.
However, yesterday, Sen. Joe Manchin, a conservative Democrat, said he would not vote for the Build Back Better Act. Democrats need Manchin’s vote in the 50-50 Senate. Because his decision could ruin the $1.75 trillion social spending and climate policy bill, the EV industry could suffer from low demand absent the tax incentives. A new study from the economic consulting firm Anderson Economic Group (AEG) stated that electric vehicles could be more expensive to fuel than their internal combustion engine counterparts.
Given this scenario, we think it could be wise to avoid fundamentally weak EV charging stocks ChargePoint Holdings, Inc. (CHPT), Blink Charging Co. (NASDAQ:BLNK), and EVgo, Inc. (EVGO).