The electric Vehicle (EV) market is poised for significant growth in the coming years, with market forecasts predicting a staggering $56.7 trillion industry by 2050. In 2022, EV sales experienced a 61% increase, reaching 10.4 million units worldwide. Although growth is expected to be slower this year, with estimates of around 14 million units, it still demonstrates substantial progress within a challenging economic climate. By the end of the year, it is anticipated that there will be roughly 40 million EVs on the road globally.
Passenger vehicles are expected to dominate the market, accounting for 80% of sales by 2030 and 70% by 2050. BloombergNEF projects the EV market to grow to $8.8 trillion by 2030 and a remarkable $56.7 trillion by 2050.
Despite economic uncertainties, the outlook for EVs remains promising. Electric vehicles continue to be a rare source of growth for global investors, providing valuable diversification benefits driven by the transition towards cleaner energy sources rather than economic cycles.
Recent earnings successes from major EV manufacturers, achieved even after price cuts, further highlight the momentum in the industry. This creates opportunities for investors to gain exposure to the growth potential of the EV market.
One option for investors seeking EV exposure is the Kraneshares Electric Vehicles and Future Mobility ETF (KARS). This fund offers a global approach to EV investments and encompasses the entire value chain, including electric vehicle manufacturers, components, batteries, hydrogen fuel cells, and raw materials used in EV production.
KARS invests in well-known car companies such as Tesla, Ford, and Mercedes-Benz, as well as major Chinese EV manufacturers like Li Auto, Nio, and BYD. Additionally, it includes investments in companies contributing to the EV value chain, such as Samsung, Panasonic, and Albemarle, a leading lithium manufacturer.
The KraneShares Electric Vehicles and Future Mobility ETF aims to capture the full potential of the growing EV market. With an expense ratio of 0.70%, it provides investors with a diversified and comprehensive approach to investing in the EV industry.
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