Electric vehicle and renewable energy stocks rallied after the US Senate passed a key tax, climate and healthcare bill, which Democrats called the largest investment in fighting climate change ever made in the country.
Tesla shares charged ahead, rising as much as 5.3% and on pace to wipe off most of its losses from Friday, while smaller EV makers including Rivian Automotive and Lucid Group and Detroit-based traditional automakers Ford and General Motors also jumped higher.
Some of the strength in Tesla also came after news that it has struck a deal worth about $5 billion to secure nickel supplies from Indonesia over the next five years.
The Elon Musk-led company’s shares were the biggest contributors to the gains in the S&P 500 Index on Monday.
The climate bill extends a popular $7,500 per vehicle consumer tax credit for the purchase of electric vehicles, though new cars that cost more than $55,000 for pickups and $80,000 for SUVs won’t qualify for these credits.
Renewable energy companies also stand to benefit from generous tax credits, sending shares of solar energy firms First Solar, ReneSola, and SunRun higher – with hydrogen and fuel cell company Plug Power also advancing.