Electric Vehicle Sales Expected to Boom

The movement toward more electric vehicle sales is certainly on the agenda of the current presidential administration as a top priority.

This administration more than any other in the past could be poised to increase the sales of electric models with the use of several tools at their disposal. Now that we have the technology and regulations required to make significant changes, automakers that sell electric cars should see increases once the pandemic slump is over.

CAFÉ Could Increase in the Upcoming Years

With changes in administrations from Democrat to Republican and back to Democrat, the Corporate Average Fuel Economy (CAFÉ) regulations have been rolled back but could be pushed forward again. Under the previous administration, the regulations were rolled back from a requirement of an increase of 5 percent annually to 1.5 percent, but that could be pushed back up in the near future, which would mean more EVs are needed to offset the fuel mileage of many models.

We Could See a Renewal of the Cash for Clunkers Program

A similar program was launched during the Great Recession in 2009 but a new version could be used to incentivize the purchase of an electric vehicle for many owners. Giving rebates to Americans who purchase an EV could be a great way to increase sales of electric models and help the environment at the same time. If we’ve proven anything it’s that Americans love to get something back when they buy an item.

Federal Tax Credits Could be Renewed and Expanded

Both GM and Tesla have reached the threshold set for the current $7,500 federal tax credit for the purchase of an EV model. Under the current president, the credit could be renewed and expanded, making it easier to buy a Tesla or GM electric vehicle. This would be increased and expanded to be good for all automakers, but these two that already hit the mark would benefit greatly.

Added Infrastructure Investments Should Benefit Automakers

We’ve already seen proof that the current president is ready to invest in the infrastructure of the country and add more EV programs to the country. One of the first actions made was to state the entire federal fleet would be replaced with EV models over a period of time. The goal is to have the improved infrastructure aid in environmental stability and improvement.

Expansion of Automotive Stimulus Programs

For many years, the U.S. government has subsidized the research and development of new technologies. Tesla is one company that has taken advantage of these programs in the past decade, while many others have as well. Expect the current administration to support research into cleaner fuel, energy-saving programs, and expanded growth of various electric vehicle technologies.

Whether you’re looking to invest in electric vehicle stocks or you’re interested in the priorities of the current presidential administration, it’s easy to see EV development and growth are at the top of the list. During the next four years, we should see a sharp increase in the development and sale of EV models around the country.