The No. 1 Electric Vehicle Stock Is On Sale Right Now

President Biden's Transportation Secretary, Pete Buttigeig, is pressing the White House message that a coast-to-coast network of 500,000 electric vehicle (EV) charging stations is needed. To put that in perspective, that 500,000 is nearly three times more than the 168,000 or so old-school gas stations in the country.

Now, a single level 3 EV charger can potentially charge a car battery up to 80% in just 10 minutes. They sure aren't cheap, though; a single charger can cost as much as $260,000.

In fact, Biden's entire EV plan, part of his $2 trillion infrastructure proposal, has a $174 billion price tag.

For investors in the infrastructure and, specifically, the EV space, that $174 billion is a stiff dose of rocket fuel.

And it couldn't come at a better time. The potential for all that stimulus comes right as EV stocks are headed much lower – the perfect conditions for turning a beaten-up company into a double-digit winner.

Cars Parked In Front Of Company Building

Image Source: Pexels

Here's the play…

EV Stocks Are Getting Crushed… Perfect

Companies like electric automaker Canoo Inc. (Nasdaq: GOEV) had a really strong start in March – GOEV shares rocketed 40% in about a week, and most EV companies were riding high.

Then they fell out of bed. Barron's reported the basket of EV stocks it tracks declined 14%.

There are a couple of reasons why, and it doesn't have much to do with fundamentals or future prospects.

Electric cars are "new," and a lot of investors (foolishly, I'd say) think of them less as long-term investments and more as speculative bets. And, hey, some of them are; I'll trade some EV companies all day if the S.C.A.N. signals are there.

But, when it's all said and done, EVs will dominate roads and streets; they'll be completely mainstream, thanks to economics and environmental concerns, but the fact is EVs aren't "there" just yet. And, at the moment, investors are feeling a little more skittish, a little more "risk-off" these days, with recent market volatility.

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Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

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