- The stock price of ChargePoint Holdings Inc (NYSE: CHPT) increased over 5% pre-market today. This is why it happened.
The stock price of ChargePoint Holdings Inc (NYSE: CHPT) increased over 5% pre-market today. Investors are responding positively to the $1 trillion infrastructure package being passed by Congress on Friday, which will drive efforts to build a national network of electric vehicle stations. This includes funding to drive the nation’s electric grid by upgrading the high-voltage transmission lines.
The package directs $5 billion to expand EV highway charging — which would enable drivers to take long road trips. And another $2.5 billion would be in federal grant funding — which could go toward EV charging or alternatives like hydrogen-fueling infrastructure while $2.5 billion is set aside for electrifying school buses.
This legislation is expected to be signed by President Biden soon. And it would include funds for fixing aging roads, bridges, and ports. Plus it would also be used for replacing lead pipes in drinking water systems and expanding Internet access in rural areas.
Auto companies have started offering more EV options and the U.S. has started developing an ecosystem for a larger build-out of charging stations. States have been deploying grant programs and many utilities offer programs for getting the infrastructure ready.
“States are prepared. They’ve got experience,” said Anne Smart, VP of public policy at the charging provider ChargePoint Holdings via The Wall Street Journal. “The charging industry has a network of contractors and “people in all 50 states ready to install the stations and maintain the stations.”
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.