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President Joe Biden said on Monday that cars and internal combustion trucks in the federal government’s existing fleet of vehicles would eventually be replaced with electric vehicles (EVs).
Biden made the remarks after signing his latest executive order. Simply titled “Buy American,” it’s an initiative to support the domestic industry, including the thriving electric vehicle segment.
“The federal government … has a huge fleet of vehicles, which we’re going to replace with clean electric vehicles made right here in America by American workers, creating millions of jobs, a million jobs for workers across the country. ‘automotive and clean energy, and vehicles that are net zero emissions, ”Biden said.
Image source: Getty Images.
Right now, federal government standards require it to purchase cars in which at least 50% of their parts are made in the United States. Biden has promised to raise that standard, although exact details have not been provided.
The President also did not propose a timeframe for the change to be fully realized. It is likely that this could take many years, given the size and reach of the Federal fleet.
Nonetheless, if the program runs relatively smoothly to any degree, it will make the federal government reliable and stable customers of EV manufacturers. You’re here (NASDAQ: TSLA) is currently the flagship model in the segment, although the company appears determined to meet the needs of the more affluent consumers. Last November, for example, he stopped selling the economy version ($ 35,000) of his Tesla Model 3.
So General Motors (NYSE: GM), which is very active in the field of alternative fuels and has decades of experience in mass market pricing, could be a bigger winner in the federal game.
The country’s automakers, including Tesla and General Motors, have yet to officially respond to Biden’s announcement, although investors are sure they are happy with the upcoming initiative.
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