The Biden Boom Is Coming And These Companies Could Soar

January 21, 2021 - OilPrice.com


“The world’s first trillionaire will be a green-tech entrepreneur.”

New York Times veteran tech journalist Kara Swisher boldly declared this a year ago--right before the outbreak of a pandemic that would hasten our transition to clean energy … and that would exponentially increase the mountains of money piling into stocks that are in any way tied to a cleaner, better future.

Governments the world over are pushing a green industrial revolution … and even giant oil traders are scrambling to pour billions of dollars into renewables in what the Financial Times calls a “dramatic shift in the world’s energy mix”.  

It won’t just propel a new commodity supercycle …

It will propel a brilliant collection of new opportunities for tie-ins to all things related to renewable energy.  

It’s a global consensus that a green revolution is exactly what should unleash post-pandemic growth.

And nowhere is that shaping up to be more stunning than in the United States, where the ‘Biden Boom’ is expected to push everything tied to green energy even further into the “outperform” range. 

The likely beneficiaries aren’t just eyeing a post-COVID recovery … they’re part of a global lifestyle change that aims to disrupt multiple industries, with transportation undergoing the most profound transformation. 

An unstoppable Tesla (NASDAQ:TSLA) that cost short sellers $40 billion in 2020 alone …

NextEra (NYSE:NEE) has trounced Big Oil to become the rising new king of energy …

A momentous enthusiasm for green hydrogen has led stocks like FuelCell (NASDAQ:FCEL) to reward investors with over 600% returns...

And Facedrive (TSX.V:FD, OTCMKTS:FDVRF), the pioneer of carbon-offset ride-hailing in North America--is positioned to surf the tailwinds of a $40-trillion energy transformation with its high-profile acquisition of a transportation as a service industry trailblazer: Washington, DC-based Steer. 

A $2T Infrastructure Rehaul Just Got Real

Among other things, Biden’s transportation policy includes a $2-trillion infrastructure plan that even Republicans will like. 

It aims to reimagine the entire transportation sector based on new technology and new sources of energy. That is set to include expanded EV purchase incentives to get more people driving them, and a 500,000-strong EV charging network by 2030. 

For Facedrive, this is a huge opportunity.  

First, Facedrive’s acquisition of Steer in September 2020 couldn’t have come at a better time. 

The acquisition was high-profile because Steer was owned by energy giant Exelon (NASDAQ:EXC), and the deal included a $2-million strategic investment by energy giant Exelon’s wholly-owned subsidiary, Exelorate Enterprises, LLC. 

That buy gave Facedrive a tie-in to a major American utility at a time when we are undergoing a massive energy transition. It also gave Canada-based Facedrive a solid footprint in the United States--it’s next major expansion target, along with Europe. Finally, it gave Facedrive a company in its diverse portfolio that has very ambitious plans to change the way people think about car ownership … and EVs. 

Steer’s founder, Erica Tyspin, one of Forbes’ “Under 30 List” of top young entrepreneurs, set out to disrupt the auto industry by offering customers their own private, virtual EV showroom, in the form of a subscription service for on-demand caruse. It’s an all-inclusive, user risk-free service that is 100% electric, plug-in, and hybrid.   

It’s a perfect match for Facedrive’s ESG-focused tech ecosystem and its multiple verticals.  

From Steer’s perspective, this is where the revolution continues …

Not only because it could help put even more EVs on the road, but because it’s an easier, more flexible and ultimately cheaper way to ‘own’ (use) an EV car--or, in this case, an entire showroom. 

And if anyone is skeptical about conventional car drivers switching to Steer … the numbers will surprise you: 70% of Steer’s members have never driven an EV before. So, this is clearly an open door for new converts who wouldn’t otherwise find themselves in a Tesla or an Audi eTron. 

But Facedrive has a lot more skin in this ‘Biden Boom’ game that Steer ….

With a ride-hailing industry worth $60 billion today and on track to top $85 billion by 2023, Uber and Lyft started this transportation revolution …

But they ended up creating more pollution than they displaced.

Now, they are playing catchup, with Uber targeting EVs to account for 100% of its rides in American, Canadian, and European cities by 2030, and Lyft vowing to have 100% of rides across the board do the same.

Facedrive (TSX.V:FD, OTCMKTS:FDVRF) was way ahead of this game, offering customers a choice of gas, EV or hybrid back in 2019 when they launched, and planting trees in cooperation with the City of Toronto to offset carbon created by conventional rides. 

Now, they’re planning to aggressively push into the United States, and they plan to grab a piece of the energy transition pie in a number of segments, from Steer’s EV subscriptions to the flagship ride-hailing and carbon-neutral food and pharma deliveries … and much more. 

While Uber and Lyft are playing catch-up, Facedrive has been running with the ball and hungrily acquiring businesses for its ‘energy transition’ ecosystem, and these are where we might find the biggest beneficiaries of the coming ‘Biden Boom’.

With global expansion plans underway and trillions of dollars on the table for companies focused on the green economy, the Facedrive news flow is expected to be abundant this quarter and next, and 2021 is set to make clean, green history as the Biden administration turns its plans into reality. 

The Electric Vehicle Boom Is In Full Swing

Fisker (NYSE:FSR) is a speculative bet in the scene, having only IPO’d in 2020. While it hasn’t seen quite the attention other electric vehicle stocks have seen in recent weeks, it is an important company to watch. It’s unique in the industry because it boasts the most sustainable vehicle on the road: It’s not just electric… it’s also is made with some recycled materials. That’s a huge plus considering how much investors are focusing on sustainability these days.

Though Fisker has underperformed on the market compared to NIO, Tesla, Xpeng or Li, it’s still trading on massive volume and in just one month, has already climbed by more than 64% since hitting a low in November. Clearly, investors are still waiting to see how the company will hold up, especially following the Nikola disaster.

But that doesn’t mean the company isn’t going places. The four-year old California based EV provider is already turning heads thanks to its innovative battery tech, and it’s already securing some major deals. In fact, just last month, Fisker signed a deal with Viggo, a European ride-hailing service to add hundreds of vehicles to its fleet.

Electra Meccanica Vehicles Corp (NASDAQ:SOLO) is another electric vehicle stock that has turned heads this year. The Canadian company’s single-seat electric car carries a lower, and more appealing price point for consumers that do not need all the bells and whistles that come with luxury brands like Tesla. It’s also on the cusp of an emerging market. In fact, demand for single-seat electric vehicles are projected to grow significantly in the coming years, and SOLO is one of the few companies in this market, representing a great opportunity for investors looking for an easy-entry EV stock with a lot of potential upside.

Electric Meccanica isn’t only interested in the company niche, however. It’s also planning to roll out an electric sports car for two, the Tofino, and another electric two-seater boasting an old-school design that will appeal to a wide range of consumers. Given that the stock is only trading at $7.31 at the moment, there is a lot of room to grow, though not without potential risks.

Alternative Energy Stocks Are Booming

FuelCell Energy (NASDAQ:FCEL) is another alternative fuel stock that has turned heads on Wall Street. Up over 800% since February 2020, FuelCell has been one of the biggest winners over the election season, with President Biden campaigning for a carbon-free America.

In fact, analysts even estimate the U.S. could spend as much as $1.7 trillion on clean energy initiatives over the next 10 years. And that’s great news for companies like Blink, Plug and FuelCell.

Though many expect FuelCell to return to earth in the short-term, its long-term trajectory is solid. It has spent years building a patent moat and developing solutions that will tie into the energy transition perfectly. FuelCell may be expected to see a hit due to its looming Q4 earnings report, which is expected to go poorly, but the company has managed to take advantage in its earlier rally, raising net proceeds of over $150 million in a public offering of 25 million shares.

And as more money piles into the industry, companies like Plug, Bloom and FuelCell are set to win big.

Canada Isn’t Ignoring The Market Trends

Magna International (TSX:MG) is a great way to gain exposure to the EV market without betting big on one of the new hot automaker stocks tearing up Robinhood right now. The 63 year old Canadian manufacturing giant provides mobility technology for automakers of all types. From GM and Ford to luxury brands like BMW and Tesla, Magna is a master at striking deals. And it’s clear to see why. The company has the experience and reputation that automakers are looking for.

Another way to gain exposure to the electric vehicle industry is through AutoCanada (TSX:ACQ), a company that operates auto-dealerships through Canada. The company carries a wide variety of new and used vehicles and has all types of financial options available to fit the needs of any consumer. While sales have slumped this year due to the COVID-19 pandemic, AutoCanada will likely see a rebound as both buying power and the demand for electric vehicles increases. As more new exciting EVs hit the market, AutoCanada will surely be able to ride the wave.

Like Magna, Westport Fuel Systems (TSX:WPRT) is another hardware and tech provider in the auto-industry.It builds products to help the transportation industry reduce their carbon footprint. In particular, it provides systems for less impactful fuels, such as natural gas. In North America alone, there are over 225,000 natural gas vehicles. But that shies in comparison to the global 22.5 million natural gas vehicles globally, which means the company still has a ton of room to grow!

GreenPower Motor (TSX.V:GPV) is a thriving electric bus manufacturer based out of Vancouver. At the moment, its focus is primarily on the North American market, but its ambitions are much larger. Founded over 10 years ago, GreenPower has been on the frontlines of the electric transportation movement, with a focus on building affordable battery-electric busses and trucks. This year alone, GreenPower Motor has seen its share price soar from $2.03 to $36.88 before correcting to the $23 range it is currently sitting in.

NFI Group (TSX:NFI) is another one of Canada’s home-grown electric vehicle pioneers producing transit busses and motorcycles. The company had a tough go at it towards the beginning of the year, but has since cut its debt and begun to address its cash flow struggles in a meaningful way. Though it remains down from January highs, NFI still offers investors a promising opportunity to capitalize on the electric vehicle boom.

In the previous months, NFI has seen an uptick in insider stock purchases which is often a sign that the board and management strongly believe in the future of the company. In addition to its increasingly positive financial reports, it is also one of the few in the business that actually pay dividends out to its investors.

By. Mark Beale

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Forward-Looking Statements

This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements.  Forward looking statements in this publication include that the demand for ride sharing services will grow; that Steer can help change car ownership in favor of subscription services; that new tech deals will be signed by Facedrive and deals signed already will increase company revenues; that Facedrive will be able to expand to the US and globally; that Facedrive’s merchandise business and sports prediction app will prove popular and successful; that Facedrive will be able to fund its capital requirements in the near term and long term; and that Facedrive will be able to carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information.  Risks that could change or prevent these statements from coming to fruition include that riders are not as attracted to EV rides as expected; that competitors may offer better or cheaper alternatives to the Facedrive businesses; TraceScan may not work as expected in commercial settings and customers may not acquire or use it; changing governmental laws and policies; the company’s ability to obtain and retain necessary licensing in each geographical area in which it operates; the success of the company’s expansion activities and whether markets justify additional expansion; the ability of the company to attract drivers who have electric vehicles and hybrid cars; the ability of Facedrive to attract providers of good and services for merchandise partnerships on terms acceptable to both parties, and on profitable terms for Facedrive; and that the products co-branded by Facedrive may not be as merchantable as expected. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

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