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President Joe Biden on Thursday stressed that gasoline-powered cars aren’t the future, as he touted a voluntary industry commitment that electric vehicles will make up half of U.S. sales by 2030.
Speaking at an event just outside the White House, Biden praised the EVs lined up behind him, as his administration also rolled out new gas mileage and anti-pollution standards for cars and trucks.
“They’re a vision of the future that is now beginning to happen — a future of the automobile industry that is electric,” Biden said of the vehicles, which included a Ford F-150 Lightning truck and GMC Hummer EV.
“Battery electric, plug-in, hybrid electric, fuel cell electric — it’s electric, and there’s no turning back. The question is whether we’ll lead or fall behind in the race for the future,” the president added.
The commitment and standards were featured in an executive order that Biden signed after his speech. Investors should keep in mind the president’s latest order is dependent on action by U.S. lawmakers, according to Benjamin Salisbury, director of research at Height Capital Markets.
“We emphasize that the executive order is not binding on the automakers but rather an aspiration contingent on massive federal subsidies that must still be approved by Congress,” Salisbury said in a note Thursday.
“We remain comparatively optimistic that Congress will pass a scaled down version of the Administration’s plan through budget reconciliation late this year although dollar amounts are highly uncertain,” the Height analyst added.
Tesla Inc.
TSLA,
CEO Elon Musk’s tweeted ahead of the White House event that it was “odd” the EV manufacturer wasn’t invited to the gathering.
When asked about Musk’s tweet, White House press secretary Jen Psaki said the administration’s event was focused on the three biggest employers of United Auto Workers members. That meant executives from Ford
F,
General Motors
GM,
and Chrysler maker Stellantis
STLA,
attended. Musk, meanwhile, has faced a legal fight following a tweet discouraging union organizing at Tesla.
“Today it’s the three largest employers of the United Auto Workers and the UAW president who will stand with President Biden,” Psaki told reporters, though she added that the administration looks forward to having a range of partners.
Historically, the U.S. has relied on imports for the batteries and other parts that EVs use. U.S. imports of lithium-ion batteries from Asia, especially China, have jumped in step with America’s rising appetite for electric vehicles, S&P Global Market Intelligence says in a report.
Biden has tried to emphasize U.S. job growth as part of his sweeping climate-change initiatives that include renewable energy support and wider EV use, but has met with some Republican criticism over trade.
