On Wednesday, 3/31/21, President Biden made a major announcement when he described his $2.3 trillion infrastructure plan, the American Jobs Plan. In his plan, he discussed the need to improve the country’s highways, bridges, airports, and power grids. President Biden’s plan also seeks to invest in renewable energy production, electric vehicles, and improving access to high-speed internet. Other industries that will benefit from his plan are semiconductor makers, pharmaceutical developers, and construction companies.
Many companies are going to benefit from an infusion of federal funds, especially those that have been deemed important in addressing climate change. President Biden talked about how he wants to transition fleets of government cars to be electric vehicles, which means more need for charging stations. This will move energy needs away from oil and towards electricity, which can be created with renewable energy production like solar and wind power. This could mean big government incentives for automakers like Ford and GM and also electric vehicle charging companies like EVgo and ChargePoint.
I personally think the company that will benefit the most from this plan will be Tesla because it is already one of the biggest manufacturers of both electric vehicles and charging stations. Tesla is also going to be introducing their highly anticipated semitruck later this year. Beyond vehicles, Tesla also makes solar panels and solor roofs for homes. I’ve already discussed why I think Tesla is a good company to invest in on my previous blog post, Time to Invest in Tesla.
President Biden’s plan is large in scope and he said it would take place over the course of eight years, but I personally think it’s fantastic and a huge step in the right direction for American society. Politics aside, this plan would create a ton of new jobs while providing incentives for companies to be more socially responsible. This plan would improve our country’s deteriorating infrastructure and address the issue of housing shortage which is growing across the country, especially in larger cities. The American Jobs Plan will also create investment opportunities across many different sectors, what sector or companies do you think will benefit? Leave me a comment and let me know. Follow my blog where I post 2-3 times per week about finance and investing news.
Obviously, Tesla (TSLA) isn’t a new company so I’m sure many of you have already had money invested in the company. But I’ve noticed over the past 5 months Tesla’s stock price seemed overvalued. Starting 11/16/2020, their stock price gained a massive $100 per share jumping up from $400 to $500 over the course of just THREE DAYS from 11/16-11/19. Tesla’s stock price’s started skyrocketing and started shooting to the moon. The price peaked around $890 per share during this past January and has been on the decline since then.
Today, 3/26/2021, Telsa’s stock price has dipped down to around $610 per share. The last time we saw it’s price go this low was when it dipped three weeks ago around 3/8/2020, where it quickly shot back up in price averaging $700 per share since then. I personally think this stock was out of control over the past few months with volatility, but I believe the price has corrected. Over the past week, the price has gone from $670 and dipped down to $610 today.
I think it’s currently in a dip and that could make this a good time to invest. There has also been a lot of government talk about transitioning to electric vehicles (EVs) and increasing infrastructure for charging stations. This could mean a huge increase in sales because of fleet purchases. But I think the potential government incentives for building the infrastructure for more charging stations could be HUGE.
In other recent Tesla news, Elon Musk has talked about a large expansion at the Shanghai factory and has said the Chinese market will be Tesla’s “biggest market” in the long term. Also, PepsiCo has preordered and expects to be the first recipients of 15 brand new Tesla semitrucks this year at their Modesto, CA Frito-Lay manufacturing facility. In other Tesla semitruck news, it might not be legal on roads in Australia due to a law there where vehicles cannot be wider than 250 centimeters but it measures 3.8 centimeters wider than that, Tesla is lobbying for this rule to be amended.
I personally think all this recent news along with the current dip in it’s stock price makes Tesla a very tempting investment opportunity. I am no expert and this is not financial advice on how to invest your own money, but I personally bought some Tesla today. Leave me a comment with your thoughts regarding Tesla.