Tesla shares went up with the recent announcement of better than expected first-quarter delivery numbers, and it could get even better for the EV automaker thanks to the Biden administration’s infrastructure bill. This is according to a report from Yahoo Finance

Part of the bill includes plans to increase EV adoption, including the expansion of EV tax incentives for consumers. 

According to the report, Wedbush tech analyst Dan Ives “lifted his rating this past Monday to Outperform with a $1,000 price target. Ives' bull case price target is $1,300, reflecting optimism on Biden's EV ambitions.”

Ives told Yahoo Finance Live

“We are hearing from our contacts in the Beltway that $7,500 tax credit could potentially be $10,000 in terms of a credit and that's going to be a massive catalyst not just for Tesla, but for the EV ecosystem in the U.S."

That’s huge. Increasing the EV tax incentive from $7,500, where it currently sits, to $10,000 would be a big deal for EV adoption. Since Tesla and General Motors have surpassed the 200,000 BEV sale threshold for federal tax incentives, consumers aren’t able to take advantage of the $7,500 incentive for those makes anymore. However, they could return with the Biden Administration’s help. 

The administration’s recently announced plans include spending nearly $200 billion over eight years on the EV industry. The plan wants to expand tax incentives to consumers, and will likely include Tesla and GM in those expended incentives. This wouldn’t just be great for Tesla and GM but for all automakers producing EVs. This is also fantastic news for consumers. With many EV prices slowly moving down, a $10,000 incentive would allow for more of the population to afford one. Keep in mind, there is also Biden's GREEN Act

A good long-range EV like the Chevy Bolt starts at about $36,000, and a $10,000 tax incentive would make that price much more appealing. If you lease an EV, the dealer would include the tax incentive in the price, significantly bringing down the monthly payment. Additionally, if Tesla is able to bring its $25,000 electric car to the US with those tax incentives in play, it would be more affordable than most of the cheapest ICE vehicles in the market. 

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