EV makers rolling into 2021 like...
Hey Snackers,
The nation was shaken yesterday – violent, pro-Trump rioters stormed the US Capitol building, halting the certification of Joe Biden’s Electoral College win, until lawmakers could reconvene to finalize Biden’s confirmation.
Despite these shocking events, stocks closed higher as a Democratic Senate win boosted hopes for more stimulus.
Run it back... In the November elections, the state of Georgia went to Biden. But the Senate race went into overtime: a Georgia candidate needs to win over 50% of votes before advancing (it's a Georgia thing). That didn't happen, so we had runoff elections between the top-voted candidates this week. TLDR: Republicans had to win one seat to control the Senate, and Democrats needed two — the Dems unexpectedly took both.
November feels like eons ago... Back then, we were pretty sure Republicans would end up taking the Senate. That got Wall Street excited about a divided government (round 2).
Yesterday, we saw "The Undoing"... A partial reversal of November's market moves (not the HBO show). The tech-heavy Nasdaq index dropped on regulation fears, while pot stocks like Aurora and Canopy surged on legalization hopes. The Dow jumped to a record high, led by banks and industrial companies like Caterpillar — which could benefit from more stimulus and the Dems' $1.5T infrastructure plan. What investors really have their eye on: more stimulus money, which could be a priority for the Dem-controlled Congress.
"Ooh girl, shock me like an electric"... wheel. Electric vehicles are having a moment this week with a flurry of milestones from around the globe:
Ludicrous... While the rise of EVs is old news, this week's headlines prove what a remarkably good year 2020 was for the electric market.
Politics could make 2021 the Year of the EV... The top two barriers to EV-buying are range-anxiety and price. A Democrat-controlled Senate could pass legislation supporting EV cost incentives and infrastructure (think: more charging stations). Top Senate Democrate Chuck Schumer has already proposed a $454B 10-year plan to offer cash vouchers for EV purchases. That, coupled with swiftly-falling battery prices, could make 2021 the Year of the EV.
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Authors of this Snacks own shares of: Uber
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