RIDE - Why Nikola Lordstown and Blink Charging Stocks Dropped Today
After big jumps yesterday, several stocks in the electric vehicle (EV) sector are giving back some of those gains today. Electric heavy-truck maker Nikola (NASDAQ: NKLA) , EV start-up Lordstown Motors (NASDAQ: RIDE) , and charging network company Blink Charging (NASDAQ: BLNK) were down between 5% and 6% early on Friday. As of 2:47 p.m. ET, Nikola shares were still down 3.6%, while Lordstown was positive by 1%, and Blink was off by 1.2%.
Yesterday's gains came after word that there was an agreement among key Democratic leaders to push a package that would include $369 billion for clean energy investments. The Inflation Reduction Act of 2022 seemingly has a path to passage in Congress, and it also has the endorsement of President Biden. It includes $1 billion for clean heavy-duty vehicles that could benefit Nikola as it ramps up production of its battery electric semi trucks and works toward commercialization of hydrogen fuel cell trucks.
It also includes incentives for consumers of clean energy vehicles , and as much as $20 billion in loans to build new clean vehicle manufacturing facilities across the country. But investors should realize that potential good news needs to be tempered somewhat, and that seems to be driving today's market moves.
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Why Nikola, Lordstown, and Blink Charging Stocks Dropped Today