What happened
Shares of Blink Charging (BLNK -3.11%) have jumped today, up by 9.6% as of 3:20 p.m. EST, as voters cast their ballots on Election Day and Democratic candidate Joe Biden is favored to win the presidency. A Biden administration is expected to promote adoption of electric vehicles (EVs), which would in turn bolster demand for Blink's EV charging network. The stock was up as much as 11% earlier in the session.
So what
Current law provides for a federal tax credit of up to $7,500 for consumers who purchase alternative energy vehicles such as EVs. However, when a manufacturer reaches 200,000 in qualifying unit sales in the U.S., that credit begins to phase out in subsequent quarters. Additionally, the credit can only be applied toward a taxpayer's overall tax liability, so some middle-class consumers that don't owe that much in federal taxes may not receive the full value of the credit.
Image source: Blink Charging.
Biden has proposed reinstating the EV tax credit permanently, removing the volume cap applied to manufacturers, and making the credit more accessible to middle-class families, according to the Tax Policy Center. More broadly, a Democratic administration would be more favorable for renewable energy.
Now what
It's worth noting that this year's presidential election is being conducted under unprecedented conditions as a result of the COVID-19 pandemic. Due to various logistical challenges such as a heightened number of mail-in ballots, election officials have warned that it may take several days to determine the winner.
Blink is scheduled to report third quarter-earnings next week on Nov. 12.
