President Joe Biden said on Monday that the internal combustion cars and trucks in the federal government’s existing vehicle fleet would eventually be swapped for electric vehicles (EVs).
Biden commented after signing his latest executive order. Directly titled “Buy American,” it is an initiative aimed at supporting the domestic industry, including the thriving EV segment.
“The federal government … is going to have a huge fleet of vehicles, which we are going to replace with clean electric vehicles made by American employees right here in America, creating millions of jobs, a million auto worker jobs, and clean energy, and vehicles Which are zero zero emissions, ”said Biden.
At the moment, the federal government’s standards state that it purchases cars in which at least 50% of its share is made in the US, with a promise to raise that standard, although exact details were not provided.
The chairman did not offer a deadline to fully realize the switch. It is likely that this may take several years, given the size and scope of the federal fleet.
Nevertheless, if the program progresses relatively smoothly to any extent, it will make the Fed a reliable and stable customer of EV manufacturers. Tesla (Nasdaq: TSLA) It is currently the poster child for this segment, although the company is determined to cater to the more affluent consumers. Last November, for example, it stopped selling the budget ($ 35,000) version of its Tesla Model 3.
Hence General Motors (NYSE: GM), Which is very active in the all-fuel space and has decades of pricing experience for the mass market, could be a big winner in the federal game.
The country’s automakers, including Tesla and General Motors, have not yet formally responded to Biden’s announcement, although investors are sure to be pleased with the upcoming initiative.