KEY POINTS

  • Biden's "Build Back Better" program could help electric vehicle in the adoption
  • The clean energy policy will increase the number of charging stations across the US
  • Critical clean energy technologies may see a dramatic cost reduction

Elon Musk and Tesla may significantly benefit from a Biden administration plan to subsidize electric vehicles and roll out charging stations across the U.S.

President-elect Joe Biden revealed plans of increasing the number of electric vehicle charging stations in the country, from 27,000 to 550,000, as part of his “Build Back Better” clean energy campaign, CNBC reported.  

“Tesla would be one of the biggest winners as an electric vehicle pure play, because EVs would be very heavily subsidized under a Biden administration,” Garrett Nelson of CRFA Research said. 

“You're looking at about a 20-fold increase in the number of EV charging stations, which would really help the electric vehicles in the adoption,” he added. 

Biden’s “Build Back Better” policy aims to replace the federal government’s vehicles with electric vehicles, including fleets used for the postal service and other services. 

Critical clean energy technologies, including battery storage, negative emissions technologies, and renewable hydrogen, may see a dramatic cost reduction under a Biden presidency. American manufacturers may get government incentives, especially companies in the clean energy and electric vehicle industry.

Tesla could also benefit from tax credits, which reduce consumer sticker price and increase rebates to consumers who trade their less-efficient vehicles for newer, greener cars, Business Insider reported.

President-elect Joe Biden advocated for clean energy during his presidential campaign. The auto industry may receive federal investments to provide Americans “high-quality, zero-emissions” transportation options, according to his campaign website.

While Biden's clean energy policy can boost Tesla's sales, it could also strengthen the enforcement of regulations on labor and financial practices. His policy could strengthen unions as well, making it harder for Tesla and Musk to expand boundaries. 

In September 2019, the National Labor Relations Board found that the American electric vehicle company violated national labor laws after Musk tweeted that Tesla workers who unionized would be forced to give up their company stock options.

 

“Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues & give up stock options for nothing? Our safety record is 2X better than when plant was UAW & everybody already gets healthcare,” the tweet read.  Tech entrepreneur Elon Musk's planned Tesla factory is the next vast construction site outside Berlin Tech entrepreneur Elon Musk's planned Tesla factory is the next vast construction site outside Berlin Photo: AFP / Odd ANDERSEN