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With automation and technological breakthrough emerging rapidly, fast pickup in electric vehicles is in the cards. Solid growth momentum and amazing one-year stock performance shown by Elon Musk’s Tesla (TSLA - Free Report) and other EV players support the fact. In fact, exclusive EV players largely outperformed the internal combustion engine (ICE) companies.
Electric vehicle maker Tesla's shares have surged about 132.3% in the past year, breezing past the S&P 500’s 31.4% gains (as of Aug 12, 2021). It clearly performed better than the other car makers as Ford (F - Free Report) was up 92.3%, Honda Motors (HMC - Free Report) gained about 28% and Toyota Motor (TM - Free Report) gained about 35.3%. Chinese version of Tesla – NIO Inc. (NIO)—jumped 229.1% past year.
Against this backdrop, below we highlight a few reasons that should propel the space further higher (read: Guide to Electric Vehicle ETFs).
Earnings Strength
In late-July, Tesla Motors (TSLA - Free Report) reported robust Q2 earnings, wherein it beat the estimates on both earnings and revenues. Adjusted earnings per share came in at $1.45, easily beating the Zacks Consensus Estimate of 90 cents and improving from the year-ago earnings of 44 cents. Revenues jumped 98% year over year to $11.96 billion and edged past the Zacks Consensus Estimate of $11.39 billion (read: ETFs to Buy on Tesla's Q2 Earnings Strength).
Tesla also reported record deliveries for second-quarter 2021. It delivered a record 201,250 (199,360 Model 3 and Y, and 1,890 Model S and X) vehicles. Deliveries were up 121% from the year-ago quarter, marking the highest growth rate in two years and an acceleration from the 109% year-over-year growth reported in Q1.
Chinese version of Tesla Nioshares also gained after the Chinese electric carmaker posted a narrower than expected loss and a jump in revenues. Revenue surged 127.2% year-on-year to hit 8.45 billion yuan ($1.31 billion), more than the 8.32-billion-yuan analysts had estimated. Nio said it delivered 21,896 vehicles in the second quarter, within its own previously-stated range. For the third quarter, Nio forecasts that it will deliver between 23,000 and 25,000 vehicles.
Infrastructure Bill
The U.S. Senate recently passed the Infrastructure Investment and Jobs Act, better known as the bipartisan infrastructure bill. After weeks of negotiations between Republicans and Democrats, the two sides decided to spend $1.2 trillion on physical infrastructure, climate change and more. For the auto industry, this legislation would create a monumental shift for electric cars with the creation of a national EV charging network (read: Stocks & ETFs Winners From Senate's Nod for Infrastructure Bill).
Precisely, the bill includes $7.5 billion to create charging stations all across the United States, which would inevitably help spur EV adoption in the country. In addition, the bill comprises another $7.5 billion to transition buses and other public transportation away from fossil fuels and to zero-emission options.
Needless to say, the enthusiasm in the EV space has prompted ETF issuers to come up with EV and battery-related funds. In the past two years, there was a surge in the launches of these ETFs, with which investors can tap this accelerating industry.
ETFs in Focus
Investors can thus play the below-mentioned EV ETFs at the current level.
Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report)
Image: Bigstock
2 Reasons to Buy EV ETFs Now
With automation and technological breakthrough emerging rapidly, fast pickup in electric vehicles is in the cards. Solid growth momentum and amazing one-year stock performance shown by Elon Musk’s Tesla (TSLA - Free Report) and other EV players support the fact. In fact, exclusive EV players largely outperformed the internal combustion engine (ICE) companies.
Electric vehicle maker Tesla's shares have surged about 132.3% in the past year, breezing past the S&P 500’s 31.4% gains (as of Aug 12, 2021). It clearly performed better than the other car makers as Ford (F - Free Report) was up 92.3%, Honda Motors (HMC - Free Report) gained about 28% and Toyota Motor (TM - Free Report) gained about 35.3%. Chinese version of Tesla – NIO Inc. (NIO)—jumped 229.1% past year.
Against this backdrop, below we highlight a few reasons that should propel the space further higher (read: Guide to Electric Vehicle ETFs).
Earnings Strength
In late-July, Tesla Motors (TSLA - Free Report) reported robust Q2 earnings, wherein it beat the estimates on both earnings and revenues. Adjusted earnings per share came in at $1.45, easily beating the Zacks Consensus Estimate of 90 cents and improving from the year-ago earnings of 44 cents. Revenues jumped 98% year over year to $11.96 billion and edged past the Zacks Consensus Estimate of $11.39 billion (read: ETFs to Buy on Tesla's Q2 Earnings Strength).
Tesla also reported record deliveries for second-quarter 2021. It delivered a record 201,250 (199,360 Model 3 and Y, and 1,890 Model S and X) vehicles. Deliveries were up 121% from the year-ago quarter, marking the highest growth rate in two years and an acceleration from the 109% year-over-year growth reported in Q1.
Chinese version of Tesla Nio shares also gained after the Chinese electric carmaker posted a narrower than expected loss and a jump in revenues. Revenue surged 127.2% year-on-year to hit 8.45 billion yuan ($1.31 billion), more than the 8.32-billion-yuan analysts had estimated. Nio said it delivered 21,896 vehicles in the second quarter, within its own previously-stated range. For the third quarter, Nio forecasts that it will deliver between 23,000 and 25,000 vehicles.
Infrastructure Bill
The U.S. Senate recently passed the Infrastructure Investment and Jobs Act, better known as the bipartisan infrastructure bill. After weeks of negotiations between Republicans and Democrats, the two sides decided to spend $1.2 trillion on physical infrastructure, climate change and more. For the auto industry, this legislation would create a monumental shift for electric cars with the creation of a national EV charging network (read: Stocks & ETFs Winners From Senate's Nod for Infrastructure Bill).
Precisely, the bill includes $7.5 billion to create charging stations all across the United States, which would inevitably help spur EV adoption in the country. In addition, the bill comprises another $7.5 billion to transition buses and other public transportation away from fossil fuels and to zero-emission options.
Needless to say, the enthusiasm in the EV space has prompted ETF issuers to come up with EV and battery-related funds. In the past two years, there was a surge in the launches of these ETFs, with which investors can tap this accelerating industry.
ETFs in Focus
Investors can thus play the below-mentioned EV ETFs at the current level.
Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report)
SPDR S&P Kensho Smart Mobility ETF (HAIL - Free Report)
iShares Self-Driving EV and Tech ETF (IDRV - Free Report)
Simplify Volt RoboCar Disruption and Tech ETF (VCAR - Free Report)
KraneShares Electric Vehicles And Future Mobility ETF (KARS - Free Report)