EVs and prisons early winners and losers in Biden administration
Electric vehicle and private prison stocks are among the initial batch of winners and losers in the new Joe Biden administration as the Democratic president rolls out his first policy actions.
After Biden said late Monday he wanted to replace the federal government’s vehicle fleet with electric cars, shares of EV manufacturers soared Tuesday, including Workhorse Group Inc., which touched an intraday record. Workhorse surged as much as 33%, while Nikola Corp. gained 26%, Lordstown Motors Corp. added 20% and Tesla Inc. rose 1.7%.
Green-energy stocks similarly advanced last week when Biden signaled his commitment to combating climate change through his executive orders. On Tuesday, FuelCell Energy Inc. was as much as 26% higher and solar company SunPower Corp. rose 10%.
However, the president’s policies haven’t been a boon for all stocks. Shares of private prison operators dropped on Tuesday following news that Biden will sign an executive order directing the attorney general not to renew contracts with privately operated detention facilities. GEO Group Inc. fell as much as 17% and CoreCivic Inc. dropped 11%.
2021 Bloomberg L.P.