President Joe Biden said Monday that incinerators and trucks in the federal government’s existing vehicle fleet will eventually be exchanged for electric vehicles (EVs).
Biden made the remarks after signing his latest executive order. Entitled “Buy American”, it is an initiative aimed at supporting the local industry, including the thriving EV segment.
‘The federal government … owns a huge fleet of vehicles that we’re going to replace with clean electric vehicles manufactured here in America by American workers, which create millions of jobs, a million jobs in motor works and clean energy, and vehicles that net is not exempt from zero, ”Biden said.
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At present, the standard of the federal government is mandatory to purchase cars in which at least 50% of their parts are manufactured in the United States. Biden promised to raise the standard, although exact details were not provided.
The president also did not offer a time frame to fully implement the switch. This could probably take many years, given the size and scope of the federal navy.
Nevertheless, if the program runs relatively smoothly to some extent, it will make the Feds reliable and steady customers of EV manufacturers. Tesla (NASDAQ: TSLA) is currently the poster child for the segment, although it seems the company is determined to satisfy more affluent consumers. Last November, for example, he stopped selling the budget version ($ 35,000) of his Tesla Model 3.
So General Motors (NYSE: GM), which is very active in the alt-fuel space and has decades of experience awards for the mass market, could be a bigger winner in the federal game.
The country’s automakers, including Tesla and General Motors, have not yet formally responded to Biden’s announcement, though investors will surely be pleased with the forthcoming initiative.