The Biden administration’s incentives for electric-vehicle charging infrastructure will help address a major shortcoming faced by the EV industry, according to a Wedbush analyst.
What Happened: The U.S. government announced $900 million in grants for EV chargers across 35 states as part of the $7.5 billion in funding allocated through the “Inflation Reduction Act” passed in August, analyst Daniel Ives said in the note.
The U.S. needs a minimum of 500,000 chargers by the end of the decade to help EV penetration reach 20-25%, up from around 110,000 currently, the analyst said. The stretch goal is about 50% penetration in the U.S., he added.
This is all the more important as automakers, including General Motors Corporation GM and Ford Motor Company F are aggressively transitioning to EVs, the analyst said.
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“A nationwide charging network is a ‘key missing piece in the puzzle’ around longer-term EV initiatives within the U.S. for the Detroit 3,” Ives said. This is especially true as the Tesla, Inc. TSLA supercharger network continues to be a major “competitive moat” that will be hard to break for traditional automakers, he added.
GM To Gain Big: GM’s EV transformation story is slowly being recognized by Wall Street, Ives said. The company’s vertical integration capabilities and conversion of its massive customer base to EVs over the coming years present a transformation opportunity, he added.
GM has an opportunity to lay the groundwork and ultimately convert 20% of its massive customer base to EVs by 2026 and north of 50% by 2030, the analyst estimates. He expects the company’s revenue to double by 2030.
The analyst has an “Outperform” rating on GM.
Image and article originally from www.benzinga.com. Read the original article here.