The EV revolution is already under way, but it may have just had its watershed moment.
The Biden administration announced a target for electric vehicles to make up 50% of all vehicle sales in the U.S. by 2030 early on Thursday. That includes battery, plug-in hybrid and fuel cell electric vehicles.
Automakers, including $Ford Motor Co(F.US)$, $General Motors Co(GM.US)$, and Chrysler owner $STELLANTIS N V(STLA.US)$ will stand alongside President Joe Biden, pledging to meet the voluntary target, the White House said.
The three automakers confirmed they would target 40% to 50% of sales but said it was contingent on government support for manufacturing, consumer incentives, and an EV-charging network.
The EV charge, first led by $Tesla, Inc.(TSLA.US)$ and more recently joined at pace by traditional car manufacturers, now looks set to go up a gear.
Analysts at the brokerage Evercore said the targets could expedite adoption in the U.S. by several years, and expected big gains for EV and EV charging companies in the weeks ahead, singling out charging network operator EVgo in particular. There are more catalysts; the $1.2 trillion infrastructure bill contains funding for EV charging points, and the coming budget reconciliation package is expected to include incentives.
The administration will be hoping to emulate Europe, which became the world's biggest electric-vehicle market in 2020, before being overtaken by China. Europe adopted a two-pronged approach to boost EV adoption, introducing heavy fines for automakers missing vehicle emissions targets and offering consumers huge incentives to switch to electric vehicles.
-- Callum Keown
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August 05, 2021 06:33 ET (10:33 GMT)
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