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Electric vehicle (EV) sales in the United States soared to new heights, jumping more than 300,000 for the first time in the third quarter. There was a staggering 49.8% year-over-year increase, with 313,086 electric cars sold from July to September. It was the 13th consecutive quarter of growth in EV sales.
The EV landscape is undergoing a significant transformation, driven by various factors, including the relentless production efforts of prominent automakers such as Volvo, Mercedes-Benz, Nissan and Hyundai. These manufacturers posted remarkable gains, with sales growing more than 200%. Notably, Volvo witnessed a staggering 654% increase in EV sales in the third quarter. Sales jumped 376% for Nissan, 291% for Jaguar, 284% for Mercedes-Benz and 237% for Hyundai.
Though Tesla TSLA missed market estimates for deliveries in the third quarter, it remained the dominant player in the United States. It now holds 50% of the EV market, down from 62% in the first quarter.
Investors seeking to tap the boom in the EV market could bet on Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report) , iShares Self-Driving EV and Tech ETF (IDRV - Free Report) , KraneShares Electric Vehicles & Future Mobility Index ETF (KARS - Free Report) and Amplify Lithium & Battery Technology ETF (BATT - Free Report) .
Bright Future
As more consumers embrace electric vehicles, the transformation of the auto market is well underway, promising exciting developments in the years ahead. The arrival of 14 new EV models in the past year has fueled the industry’s growth. Higher inventory levels, more product availability and downward pricing pressure added to further strength. General Motors entered the fray with the delivery of the Chevy Silverado EV, while Ford anticipates a surge in production of the F-150 Lightning by the year's end (read: ETFs to Benefit as EV Market Growth in EU Remains Optimistic).
The drive for a sustainable future has been the major catalyst for the growing EV market. Policymakers in the United States, China, the European Union and other regions around the globe are implementing mandatory targets and policies in an effort to lower CO2 emissions in the transportation sector. In particular, President Joe Biden set a national goal for 50% of all new vehicle sales by 2030 to be battery-electric, fuel-cell electric or plug-in hybrid.
According to the latest data, EV sales are expected to witness a CAGR (2023-2028) of 18.17%, resulting in a projected market volume of $161.6 billion by 2028 from $70.1 billion in 2023. Electric Vehicles market unit sales are expected to reach 2.46 million vehicles in 2028.
Over the next decade, the International Energy Agency (IEA) predicts 145 million EV vehicles on the road, up from just 10 million currently, as most of the largest carmakers have vowed to hit electrification targets by 2030. Ford plans to invest $30 billion in electrification efforts by 2025, pledging to have 100% of its passenger vehicles in Europe to be zero-emissions capable by mid-2026 and moving to all-electric by 2030.
General Motors, the largest U.S. automaker, plans to invest $35 billion in electric and autonomous vehicles over the next five years, offering 30 all-electric models globally by 2025. Apart from passenger cars, truck manufacturers such as Daimler, Renault, Scania, MAN and Volvo are also pursuing emission-free driving efforts.
ETFs to Tap
Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report)
This fund seeks to invest in companies involved in the development of autonomous vehicle technology, electric vehicles, and EV components and materials. It follows the Solactive Autonomous & Electric Vehicles Index, holding 76 securities in its basket. The product has AUM of $725.2 million and charges 68 bps in annual fees. It trades in an average daily volume of 82,000 shares (read: Will Rise in Micro-EV Fuel EV ETFs?).
iShares Self-Driving EV and Tech ETF offers access to companies at the forefront of self-driving and EV innovation. It follows the NYSEÂ FactSet Global Autonomous Driving and Electric Vehicle Index and holds 52 stocks in its basket. iShares Self-Driving EV and Tech ETF has amassed $378.9 million in its asset base and trades in average daily volume of 36,000 shares. It charges 47 bps in fees per year from investors.
KraneShares Electric Vehicles & Future Mobility Index ETF (KARS - Free Report)
KraneShares Electric Vehicles & Future Mobility Index ETF offers global exposure to companies engaged in the production of electric vehicles and their components. It tracks the Bloomberg Electric Vehicles Index, which includes issuers engaged in electric vehicle production, autonomous driving, shared mobility, lithium and copper production, lithium-ion/lead acid batteries, hydrogen fuel cell manufacturing, and electric infrastructure businesses. KraneShares Electric Vehicles & Future Mobility Index ETF has amassed $153.7 million in its asset base while trading in a volume of 25,000 shares per day on average. It charges 72 bps in fees per year.
Amplify Lithium & Battery Technology ETF offers exposure to a portfolio of companies generating significant revenues from the development, production and use of lithium battery technology, including battery storage solutions, battery metals & materials, and electric vehicles. It tracks the EQM Lithium & Battery Technology Index, holding 113 stocks in its basket.
Amplify Lithium & Battery Technology ETF has gathered $126.3 million in its asset base and trades in an average daily volume of 34,000 shares. It charges 59 bps in fees per year from investors.
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ETFs to Tap on Record Electric Vehicle Sales
Electric vehicle (EV) sales in the United States soared to new heights, jumping more than 300,000 for the first time in the third quarter. There was a staggering 49.8% year-over-year increase, with 313,086 electric cars sold from July to September. It was the 13th consecutive quarter of growth in EV sales.
The EV landscape is undergoing a significant transformation, driven by various factors, including the relentless production efforts of prominent automakers such as Volvo, Mercedes-Benz, Nissan and Hyundai. These manufacturers posted remarkable gains, with sales growing more than 200%. Notably, Volvo witnessed a staggering 654% increase in EV sales in the third quarter. Sales jumped 376% for Nissan, 291% for Jaguar, 284% for Mercedes-Benz and 237% for Hyundai.
Though Tesla TSLA missed market estimates for deliveries in the third quarter, it remained the dominant player in the United States. It now holds 50% of the EV market, down from 62% in the first quarter.
Investors seeking to tap the boom in the EV market could bet on Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report) , iShares Self-Driving EV and Tech ETF (IDRV - Free Report) , KraneShares Electric Vehicles & Future Mobility Index ETF (KARS - Free Report) and Amplify Lithium & Battery Technology ETF (BATT - Free Report) .
Bright Future
As more consumers embrace electric vehicles, the transformation of the auto market is well underway, promising exciting developments in the years ahead. The arrival of 14 new EV models in the past year has fueled the industry’s growth. Higher inventory levels, more product availability and downward pricing pressure added to further strength. General Motors entered the fray with the delivery of the Chevy Silverado EV, while Ford anticipates a surge in production of the F-150 Lightning by the year's end (read: ETFs to Benefit as EV Market Growth in EU Remains Optimistic).
The drive for a sustainable future has been the major catalyst for the growing EV market. Policymakers in the United States, China, the European Union and other regions around the globe are implementing mandatory targets and policies in an effort to lower CO2 emissions in the transportation sector. In particular, President Joe Biden set a national goal for 50% of all new vehicle sales by 2030 to be battery-electric, fuel-cell electric or plug-in hybrid.
According to the latest data, EV sales are expected to witness a CAGR (2023-2028) of 18.17%, resulting in a projected market volume of $161.6 billion by 2028 from $70.1 billion in 2023. Electric Vehicles market unit sales are expected to reach 2.46 million vehicles in 2028.
Over the next decade, the International Energy Agency (IEA) predicts 145 million EV vehicles on the road, up from just 10 million currently, as most of the largest carmakers have vowed to hit electrification targets by 2030. Ford plans to invest $30 billion in electrification efforts by 2025, pledging to have 100% of its passenger vehicles in Europe to be zero-emissions capable by mid-2026 and moving to all-electric by 2030.
General Motors, the largest U.S. automaker, plans to invest $35 billion in electric and autonomous vehicles over the next five years, offering 30 all-electric models globally by 2025. Apart from passenger cars, truck manufacturers such as Daimler, Renault, Scania, MAN and Volvo are also pursuing emission-free driving efforts.
ETFs to Tap
Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report)
This fund seeks to invest in companies involved in the development of autonomous vehicle technology, electric vehicles, and EV components and materials. It follows the Solactive Autonomous & Electric Vehicles Index, holding 76 securities in its basket. The product has AUM of $725.2 million and charges 68 bps in annual fees. It trades in an average daily volume of 82,000 shares (read: Will Rise in Micro-EV Fuel EV ETFs?).
iShares Self-Driving EV and Tech ETF (IDRV - Free Report)
iShares Self-Driving EV and Tech ETF offers access to companies at the forefront of self-driving and EV innovation. It follows the NYSEÂ FactSet Global Autonomous Driving and Electric Vehicle Index and holds 52 stocks in its basket. iShares Self-Driving EV and Tech ETF has amassed $378.9 million in its asset base and trades in average daily volume of 36,000 shares. It charges 47 bps in fees per year from investors.
KraneShares Electric Vehicles & Future Mobility Index ETF (KARS - Free Report)
KraneShares Electric Vehicles & Future Mobility Index ETF offers global exposure to companies engaged in the production of electric vehicles and their components. It tracks the Bloomberg Electric Vehicles Index, which includes issuers engaged in electric vehicle production, autonomous driving, shared mobility, lithium and copper production, lithium-ion/lead acid batteries, hydrogen fuel cell manufacturing, and electric infrastructure businesses. KraneShares Electric Vehicles & Future Mobility Index ETF has amassed $153.7 million in its asset base while trading in a volume of 25,000 shares per day on average. It charges 72 bps in fees per year.
Amplify Lithium & Battery Technology ETF (BATT - Free Report)
Amplify Lithium & Battery Technology ETF offers exposure to a portfolio of companies generating significant revenues from the development, production and use of lithium battery technology, including battery storage solutions, battery metals & materials, and electric vehicles. It tracks the EQM Lithium & Battery Technology Index, holding 113 stocks in its basket.
Amplify Lithium & Battery Technology ETF has gathered $126.3 million in its asset base and trades in an average daily volume of 34,000 shares. It charges 59 bps in fees per year from investors.