Why Blink Charging Stock Jumped Today
Shares of Blink Charging (NASDAQ: BLNK) 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.
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.
Source Fool.com