The Electric Race⚡
Electricity is one of mankind’s greatest inventions, and in the past 5 years it has come to power our cars! Today the electric vehicle market is filled with more than just Tesla as more companies are starting to join the race.
Despite increasing competition and supply of electric vehicles, demand has seen a strong trend of growth with iShares Self-Driving EV and Tech ETF over doubling in value since March of this year.
But who’s winning this high-tech race? Well so far Tesla has a head start, but overseas competition is stiff and is catching up. China has seen a rise in its EV stocks such as Nio (NIO) and XPeng (XPEV) and A July report from McKinsey & Co. found that Europe EV sales increased by 44%, marking the highest growth rate since 2016.
So, what is driving all this demand? Besides, it being a massive flex, high end electric vehicles appeal to a growing theme of environmental consciousness. In fact, an increasing number of investors are looking at a company’s ESG or Environmental, Social, and Governance rating.
The EV market’s immense success is not without its drawbacks though, many investors are taking a backseat, saying the market is a hype driven bubble waiting to pop. And that the current lack of standardization for charging facilities could pose a scalability issue. The EV market race is heating up so make sure to continue to tune in!
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.