Stock markets ignored the headwinds in the clean energy sector. Thanks to an upgrade by H.C. Wainwright, Plug Power (PLUG) soared by nearly 65% last week. It set a $7.00 price target, citing higher electricity prices. That trend would strengthen the case for the adoption of Plug Power’s technology.
That hope is misplaced. The White House prefers to support nuclear energy, coal, and oil and gas sectors. The Trump administration plans to either cancel or freeze nearly $26 billion in infrastructure and climate projects.
The funding available is in question, now that the federal government has shut down. Longer-term commitments to the funding are not assured. Russell Vought, director of the Office of Management and Budget, said the funding hold is "to ensure funding is not flowing based on unconstitutional DEI (diversity, equity, and inclusion) principles.”
Vought announced an $8 billion funding cut for climate-related projects across 16 states. California and New York are affected.
Investors should tread carefully with any clean energy names. Blink Charging (BLNK) and Clean Energy (CLNE) closed at 52-week highs. Engineering and construction firms like Fluor (FLR) pulled back, while Brookfield Infrastructure Partners (BIP) and Mastec (MTZ) closed near their yearly highs. Stock markets are betting that clean energy-related projects will continue.
Related Stories
