This Little-Known Stock Will Soar If Kamala Harris Wins The Election
Elections bring change, and change brings profits. Here’s the top stock set to thrive under a Harris Presidency
As the 2024 election approaches, investors are looking for opportunities to profit from potential policy shifts. If Kamala Harris becomes president, her focus on climate action and clean energy could reshape the market. So, what’s the #1 stock to buy in this scenario? Aspen Aerogels (ASPN) stands out, particularly because of its strong position in the electric vehicle (EV) sector, where federal mandates are likely to accelerate growth.
Harris’s Environmental Agenda: A Green Future for EVs
Kamala Harris has consistently advocated for aggressive climate policies, including the acceleration of electric vehicle adoption and decarbonization of transportation. With the U.S. aiming to achieve net-zero emissions, Harris’s leadership could mean even stricter emissions regulations, increased EV incentives, and support for EV infrastructure. This will benefit companies involved in the EV supply chain—especially those focusing on advanced technologies that ensure EV safety and efficiency.
Aspen Aerogels is at the center of this transformation. The company’s PyroThin® thermal barriers, which play a critical role in managing thermal runaway risks in EV batteries, make Aspen an essential player in the clean energy transition.
Aspen Aerogels and the Booming EV Market
The growth of the electric vehicle market is one of the most significant trends in the clean energy revolution. During its Q2 2024 earnings call, Aspen Aerogels reported that EV thermal barrier revenues reached $81 million, representing a 6.4x growth year-over-year, driven largely by the ramp-up of General Motors’ Ultium EV platform. With major automakers like GM, Honda, and Ford increasing their EV production, Aspen Aerogels is positioned to capture a significant share of this expanding market.
The company’s PyroThin® technology is integrated into over 60% of new EV nameplates in 2024, making it a critical component of the industry's push toward higher safety standards and performance.
EV Mandates and Government Support
One of the key drivers of Aspen Aerogels' growth is the increasing number of government mandates related to emissions and EV adoption. Under a Harris presidency, the federal government would likely accelerate these efforts by imposing stricter fuel economy standards and promoting state initiatives like California's zero-emission vehicle (ZEV) mandates, which target 100% EV sales by 2035.
The EV market has already seen significant momentum, with July 2024 U.S. EV sales rising by 825% compared to 2023. This growth is expected to continue as manufacturers ramp up EV production to comply with emissions regulations. Harris’s potential presidency could further fuel this trend by introducing additional subsidies, tax incentives, and infrastructure investments that would drive up EV demand—and in turn, Aspen Aerogels’ thermal barrier products.
GM Ultium and PyroThin®: Leading the Way
One of Aspen Aerogels' standout clients is General Motors, which is aggressively expanding its Ultium EV platform. By the end of 2024, GM Ultium production is forecasted to reach 244,000 vehicles, and Aspen Aerogels' PyroThin® barriers are already a key component in these EVs. GM’s commitment to electrifying its fleet will require ongoing thermal barrier solutions, and Aspen Aerogels is primed to meet this demand.
As production increases, Aspen Aerogels anticipates further growth in its EV thermal barrier business, bolstered by new awards from other major OEMs. This positions the company as a go-to supplier for thermal management solutions in electric vehicles.
The Future of Aspen Aerogels Under a Harris Presidency
Under Harris, Aspen Aerogels could benefit from a broad range of policies that promote clean energy and EV adoption. Not only would federal mandates likely push automakers to scale up EV production, but increased government funding for clean energy technologies could help Aspen Aerogels expand its capacity.
Aspen is already making significant strides in meeting rising demand. In Q2 2024, the company reported strong profitability and is progressing with its plans to open a second plant in Georgia with the support of a Department of Energy loan. It’s estimated this new plant can drive additional revenue of $1.2B - $1.6B per year. Management says they have received “conditional approval” of the loan already, and are awaiting final approval. These expansions will enable Aspen to meet the surging demand for PyroThin® and continue its dominance in the EV thermal barrier market.
Why Aspen Aerogels is the #1 Stock Pick
Aspen Aerogels’ focus on the fast-growing EV market, its strong relationships with major automakers, and its advanced thermal barrier technology make it the top stock pick if Kamala Harris becomes president. With an agenda focused on decarbonizing transportation and pushing EV adoption, Harris’s policies would likely create a favorable environment for Aspen Aerogels to grow rapidly.