Plug Power, EVgo, Enovix: Analyst Clean Tech Picks For Navigating Election Exposure, Hedging Uncertainty

As the election season heats up, clean tech stocks are becoming a focal point for investors looking to position their portfolios. The upcoming 45V Treasury guidance and broader policy changes could bring volatility or opportunity, depending on the stock.

JPMorgan analyst Bill Peterson has weighed in with his top picks, dividing his recommendations into two camps: election-exposed plays like Plug Power Inc PLUG and EVgo Inc. EVGO and a safer hedge in Enovix Corp ENVX for those seeking to sidestep election-related risks.

Election Exposure: Plug Power, EVgo

Plug Power, a leading name in hydrogen fuel cell technology, is on investors’ radar for its sensitivity to the outcome of the 45V Treasury guidance, which would offer tax incentives to projects that generate clean hydrogen with minimal lifecycle greenhouse gas emissions. While Peterson expects the guidance timing to be around November/December, he doesn't see election results having a major impact on its terms.

EVgo, on the other hand, presents a more compelling case.

Peterson views the company’s path to profitability as accelerated by its access to low-cost capital from the Department of Energy (DOE), and if it can secure this capital, EVgo could see significant gains in the months following the election.

Hedging Uncertainty: Enovix

For those seeking to avoid the political risks tied to the U.S. election, Peterson favors Enovix.

With its focus on consumer electronics rather than EVs, and a manufacturing base in Malaysia, ENVX is largely insulated from election-driven policy changes. This diversification makes it an attractive option for investors wanting stability amidst the political noise.

As the election approaches, investors face two paths: capitalize on election-driven opportunities with Plug Power and EVgo, or hedge against volatility with Enovix.

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