Biden Administration Could Be a Catalyst for Ford Shares to Surge
Biden has been vocal about his commitment to clean energy. On Tuesday, DataTrek Research co-founder Nicholas Colas stated that automakers could receive a significant portion of any amount that the Biden administration puts towards clean energy.
In 2009, the American Recovery and Reinvestment Act (ARRA) included a Department of Energy loan program that still has around $40 billion in untouched funds. Furthermore, Biden nominated former Michigan governor Jennifer Granholm for Energy Secretary which could signal that the clean energy push could focus on Detroit, where Ford and GM are headquartered.
“Connect these dots and they are quite positive for Ford, General Motors, and US auto suppliers (at least in theory),” Colas said.
Ford was backed by the government for a $5.9 billion loan for “advanced vehicle manufacturing projects,” that could serve as the foundation for additional funding. “On top of that you have a political figure from Michigan running the Department of Energy. Whether this combination makes for an investment case remains to be seen, but it’s a decent start,” Colas said.
A lot of what Biden will be able to do with clean energy will depend on if Democrats can gain the majority in the Senate.