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Luxury EV maker Lucid Group (LCID) and hydrogen firm Plug Power (PLUG) are climbing 4% and 23% today, respectively.
Lucid is advancing after reporting much higher-than-expected fourth-quarter deliveries this morning. For its part, Plug is rallying for a second straight trading day after the Biden administration announced rules that will make it significantly easier for companies to receive tax credits for producing green hydrogen.
A brand new electric vehicle charging at a charging station with a city skyline in the background.
Lucid's Q4 Deliveries Beat the Average Outlook
Lucid this morning disclosed that it had delivered nearly 3,100 EVs last quarter. Analysts on average had only expected the automaker to hand over 2,339 EVs in Q4.
Research firm Cox Automotive recently stated that many consumers bought EVs last quarter in order to exploit tax credits for EVs that were implemented during the Biden administration. President-elect Donald Trump's transition team has reportedly stated that his administration would seek to eliminate the current $7,500 EV tax credit.
For all of 2024, Lucid delivered 10,241 EVs.
Plug Advances Again on Tax-Credit Easing
Many hydrogen stocks, including Plug Power, jumped on Friday after the Biden administration meaningfully relaxed the criteria for obtaining tax credits related to the production of green hydrogen. Under the new rules, hydrogen produced using natural gas in conjunction with carbon capture systems can qualify for a tax credit. Additionally, hydrogen made with up to 200 megawatts of nuclear power from some plants can become eligible for the break.
Further, firms will be able to obtain a tax credit through 2029 by showing that their hydrogen production is powered by renewables on an annual basis, and only in 2030 will they have to start demonstrating that they are using renewables hour by hour to produce their hydrogen in order to obtain a tax credit.
Under the draft rule previously released by the Biden administration, the change was supposed to occur in 2028.
While we acknowledge the potential of LCID, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LCID but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock Disclosure: The author owns shares of PLUG but has no intention of trading them in the next 24 hours. This article is originally published at Insider Monkey.