3 EV Stocks to Buy That Are Likely to Get Some Love From Democratic Governors
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A sign that the electric vehicle (EV) market is making a comeback recently came from Illinois, sending EV stocks up. Governor JB Pritzker announced that Rivian (NASDAQ:RIVN) will be receiving an incentive package of more than $8 million to expand its production facility in Normal, IL. This is great news for the EV producer, as the Normal facility is where Rivian produces multiple popular models. Pritzker, a member of the Democratic party, stated that “Illinois is positioned to be a powerhouse in this market for years to come, bringing quality jobs and revitalizing communities across the state.”
RIVN stock is rising on this news, but investors should consider the potential implications for the entire sector. If other state leaders follow Pritzker’s lead, it could spur growth for other EV stocks, as more politicians recognize the benefits that investing in EVs and EV infrastructure production at the state level can provide. As I’ve reported, many Republican politicians have displayed a clear anti-EV stance. But Democrats such as Pritzker seem to be recognizing the importance of and power of the electric vehicle industry.
Which companies could receive similar treatment to Rivian? Let’s take a look at a few likely candidates.
EV Stocks to Buy for This Trend
Lucid Motors (NASDAQ:LCID): This trendy startup has struggled significantly this year, constantly battling volatile market conditions. LCID stock has slipped below the penny stock line, prompting some criticism. But the company’s U.S. operations take place in Arizona, a state with Democrat Katie Hobbs as its governor. She’s prioritized clear energy adaptation for her state, touting the benefits of solar power. That could easily lead to her heeding Pritzker’s example and providing Lucid with cash incentives to continue building EVs, helping reduce fuel emissions and creating jobs for her state.
Beam Global (NASDAQ:BEEM): This little-known company has emerged as a leader in the EV charging space. The best way to compel consumers to make the switch to driving electric is to increase the charging infrastructure that powers fuel-efficient vehicles. Based in San Diego, California, Beam Global produces not only infrastructure for EV charging but also energy storage solutions and energy security. These are all essential areas for the clean energy transition that many Democratic leaders understand is necessary.
As indicated in the recent tweet below, California Governor Gavin Newsom has made it clear that he understands the importance of EV charging as a component of the clean energy revolution.
There’s no denying that Gavin has already made it a priority. If he decides to double down on helping this sector grow, Beam is a likely candidate. This makes it a clear choice among EV stocks to buy as adoption continues to spread.
Toyota Motors (NYSE:TM): This isn’t a U.S. company but Toyota builds plenty of cars on American soil. The Japanese auto giant is doubling down on EVs, and it plans to expand its electric and hybrid vehicle production. As the company reported in 2023:
“Advancing its commitment to vehicle electrification and building where it sells, Toyota will assemble an all-new, three-row, battery electric SUV at Toyota Kentucky starting in 2025. The company’s first U.S.-assembled BEV will be powered by batteries from Toyota North Carolina. The new battery plant, which is currently under construction, will receive an additional $2.1 billion investment to support the company’s drive toward carbon neutrality.”
Kentucky may be a red state, but its Democratic governor, Andy Beshear, seems committed to helping spur EV production and adaptation in his state. Under his leadership, Kentucky has expanded its EV charging infrastructure. It would make sense for Beshear to prioritize helping create jobs by incentivizing the companies that build there to expand their operations.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
