LCID and RIVN Stocks Will Benefit From This Emerging Electric Vehicle Trend
With the S&P 500 down more than 9% year-to-date (YTD), electric vehicle (EV) stocks are feeling the pain as well. Taking a look at Rivian (NASDAQ:RIVN), shares of the EV maker are down more than 40% YTD. On the other hand, Lucid (NASDAQ:LCID) has been faring much better and is down about the same amount as the S&P 500. While both RIVN and LCID stock are in the red today, the National Park Service (NPS) recently made an exciting announcement concerning charging stations.
LCID and RIVN Stocks: Charging Stations to Be Installed At National Parks
While there are already 140 EV charging stations installed at National Parks across the U.S., that number is not nearly enough. The NPS recently announced that additional branded charging stations will be installed in several National Parks. For example, Rivian plans on installing its Waypoint chargers at Tennessee’s 56 state parks. This summer, Rivian will start installation at various upscale camping locations in Utah as well.
Legacy automakers are getting into the action as well. Through a partnership with Electrify, Jeep plans on installing several EV chargers at several popular off-road sites, such as the Rubicon Trail in California.
However, the catch is that most of the new chargers will be Level 2 (240-volt) chargers. Level 2 chargers only add about 25 miles of range per hour of charging, so these chargers are “best suited for overnight use, not a quick recharge to keep the adventure going.”
This development is just part of a larger trend of improving EV infrastructure in the United States. Let’s take a look at what else is underway.
Biden Administration On Board to Improve EV Infrastructure
President Joe Biden’s administration is fully supportive of improving EV infrastructure. The $1 trillion infrastructure law that President Biden signed last year includes “500,000 new charging stations, electric-friendly highways and domestic battery sourcing.” Furthermore, the signed infrastructure law will authorize $5 billion for states to build a nationwide network of charging stations.
Accessibility to charging stations for EV owners is a must. Without a convenient charging station, an EV is just a hunk of metal. As EV charging infrastructure strengthens across the U.S., the acceptance and popularity of EVs should increase as well. According to consulting firm LMC Automotive, U.S. sales of fully electric vehicles was estimated to be 400,000 for 2021. By 2025, LMC Automotive expects EV sales to reach at least 2 million.
This ongoing improvement in EV infrastructure — and by extension, adoption of EVs — certainly bodes well for EV stocks like Rivian and Lucid.
On the date of publication, Eddie Pan did not hold (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.