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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.
See also: Tesla Charges Higher Over This Bellwether Indicator: What’s Happening?
“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.
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Image and article originally from www.benzinga.com. Read the original article here.