US EV companies rally after Biden announces electric fleet plans for the federal government

• Shares of American EV manufacturers are roaring higher on Tuesday after President Biden announced the federal fleet is going electric.
• Shares of Workhorse Group, Nikola, and Lordstown Motors all jumped double digits after the news broke.
• The US federal fleet is made up of 645,000 vehicles which cost taxpayers some $387 million in fuel costs in 2019.

US-based EV companies are rallying on Tuesday after President Biden announced the entire federal vehicle fleet will go electric with American-made products.

"The federal government also owns an enormous fleet of vehicles, which we're going to replace with clean electric vehicles made right here in America, by American workers," said Biden on Tuesday.

President Biden continued, "this would be the largest mobilization of public investment and procurement, infrastructure and R&D since World War 2."

Shares of Workhorse Group, Nikola, and Lordstown Motors have all responded, jumping double digits after the announcement.

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The US federal fleet comprises 645,000 vehicles, including 245,000 civilian vehicles, 173,000 military vehicles, and 225,000 post office vehicles.

Additionally, according to the Federal Fleet Report, the federal government spent over $386 million on fuel costs to run the fleet in 2019 alone.

The move by the Biden administrations continues the EV boom markets have witnessed over the past few years.

The Global X Autonomous & Electric Vehicles ETF saw 83% returns over the past year, while big names like Tesla have done even better, returning 193% to shareholders during the same period.

Now American EV manufacturers are seeing a spike in share prices after Biden's announcement. Workhorse Group, Nikola, and Lordstown Motors saw their shares spike as much as 30%, 15%, and 19%, respectively.

Workhorse group may have benefitted more than its peers because the company was already in talks with the USPS to provide delivery vans, but the process stalled. Now investors are hoping the contract will be picked up again, and shares are responding.

Shares of Workhorse traded at $31.62 as of 11:50 am EST, giving the company a $2.98 billion market cap.

While shares of Nikola traded at $23.77 and shares of Lordstown Motors traded at $26.99.