Why Tesla Shares Moved Higher Today
Clean energy stocks jumped yesterday on news of a potential new agreement by Senate Majority Leader Chuck Schumer and pivotal swing voter Sen. Joe Manchin on a new bill. A closer look at the bill shows that electric vehicle (EV) leader Tesla (NASDAQ: TSLA) stands to benefit should the legislation pass and be signed into law. Tesla shares are moving up again today on that news, trading 2.4% higher as of noon ET on Friday.
The surprise agreement out of Congress yesterday gave the renewable energy movement a boost with the proposed legislation in the Inflation Reduction Act of 2022. According to a Congressional Budget Office estimate, there is $369 billion in the bill for investments related to energy security and climate change.
Included in the bill is the continuation of a $7,500 tax credit for new EV purchases. But importantly for Tesla, it doesn't include a prior limit capped at 200,000 vehicle sales for each manufacturer. That makes Tesla buyers again eligible for this incentive.
Source Fool.com