Breaking Down The Electric Vehicle Growth Story

Electric vehicles have been one of the hottest investment areas of the past few years. Industry leader Tesla’s market capitalization surged from $40 billion three years ago to nearly $1 trillion today—more than 15x the market cap of traditional automaker General Motors.

Few predicted such gains were possible, but now, investors are coming around to the idea that the shift from traditional internal combustion engine vehicles to electric vehicles (EVs) is one of the greatest transitions of our time, and one that will last for decades.

EVs still make up only a small percentage of new vehicle sales and an even smaller percentage of the overall stock of vehicles on the road. But the industry is growing fast, fueled by better performance, cheaper cars, high gas prices, government subsidies and climate concerns, among other reasons.

This trend hasn’t gone unnoticed. Investors flung themselves on the EV bandwagon in 2020/2021, and a plethora of EV-related companies went public in those years to take advantage of the seemingly limitless amount of money available to firms in the industry. The frenzy peaked with the November 2021 IPO of Rivian, an early-stage EV manufacturer whose market value briefly topped $150 billion.

On-Demand Webinar: ETF.com and KraneShares discuss ‘What’s Driving the Electric Vehicle Market & How to Invest.’ Watch now. 

Since then, the electric vehicle mania has died down (Rivian’s market value fell as low as $32 billion this month), but the enthusiasm over the multidecade EV growth story hasn’t gone away.

That raises the question that if the EV growth story is still intact, what’s the best way for investors to take advantage of it? Everyone knows about Tesla, but that’s just one company in an industry full of other key players—other EV manufacturers, battery technology companies, charging station operators and much more.

The EV investing landscape is vast and evolving quickly. For the average investor, it’s difficult to know what to focus on.

That’s why I’m sitting down with Anthony Sassine, senior investment strategist with KraneShares and an expert on EVs. He’ll help us break down all the key topics related to the EV industry, including where the best investment opportunities lie.

Join us on Tuesday, March 29 at 2 p.m. Eastern time for this exciting webinar. Click here to register.