Clean energy stocks, including SunPower (NASDAQ:SPWR), Sunnova Energy (NYSE:NOVA), Lucid Group (NASDAQ:LCID), and Sunrun (NASDAQ:RUN), rallied about 60%, 28%, 11%, and 7%, respectively, yesterday. The increase in stock prices was due to the higher tariffs imposed by the Biden Administration on electric vehicles (EVs) and clean-energy products imported from China.
New Tariffs Imposed
It should be noted that the purpose of the new tariffs is to support U.S. manufacturers who are currently competing against China’s lower-priced products. Under the new policy, tariffs on Chinese EVs will be raised to 100% from 25%, while those on lithium-ion EV batteries will increase to 25% from 7.5% in 2024. Furthermore, a tax rate of 25% has been implemented on the battery parts. Also, the government has increased the tariff rate on solar cells to 50% from 25%.
Some tariffs are set to take effect by 2026, while others, including those for EVs, solar cells, syringes, needles, steel, and aluminum, will take effect this year.
Which Is the Best Stock in Green Energy?
The prospects for clean-energy companies are improving with rising federal investments and increasing demand for decarbonization from both the public and private sectors.
Among the above-mentioned four clean-energy stocks, analysts are bullish on NOVA stock. It has a Strong Buy consensus rating based on 15 Buys and five Holds. Analysts’ average price target on NOVA stock of $11.78 implies an impressive 121% upside potential.
