Electric vehicle (EV) stocks have been on a strong upward trajectory recently, and it’s partly attributable to Democrat Joe Biden taking over the Oval Office in January.

His presidency has far-reaching ramifications across all sectors, particularly the EV industry, according to Wedbush analyst Daniel Ives.

Ford Kuga EcoBlue plug-in hybrid

The incoming administration’s focus on environmental issues and reducing the domestic carbon footprint will likely have a dramatic impact on electric vehicles in the near-term, Ives said.

Clean energy and zero-emissions vehicles are likely to benefit from a bid to accelerate deployment of EVs and public charging outlets by 2030, the analyst said.

Restoration of the EV tax credit for Tesla is central to steepening the demand adoption curve for consumers in the U.S., Ives said.

Biden could roll out a host of tax incentives, notwithstanding a Republican-majority Senate tempering expectations of passing legislation, the analyst said.

More than $200 billion of capital expenditures, factory build-outs, distribution, and R&D will be spent over the next five years on EVs by auto stalwarts such as General Motors, Ford Motor, and Tesla, as well as pure-plays focused on the massive market opportunity, Ives said.

“As such, this creates a compelling scenario for many in the Beltway to support regardless of party affiliations as GM, Ford, and Tesla (building out a Cybertruck factory in Austin during 2021) carry heavy political weight,” the analyst said.

John Kerry’s appointment as a special presidential envoy for climate this week further underscores Biden’s commitment to climate issues, he said.

“In a nutshell, we believe the stage is set for U.S. demand to follow the leads of Europe and China with an EV friendly Biden administration in 1600 Pennsylvania Avenue and a domestic auto industry (led by GM and Tesla) laser-focused on EV vehicles over the next decade.”

This story originally appeared on Benzinga.

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

(Photo by Sjoerd van der Wal/Getty Images)

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