Over the past few years, the electric vehicle market has gained significant traction as consumers and businesses have become increasingly aware of the environmental and economic benefits of EVs. The market has grown exponentially, and this trend is expected to continue in the coming years, as more automakers shift their focus towards producing electric vehicles.
According to Allied Market Research, the global electric vehicle market was worth $163 billion in 2020, and is projected to reach $823 billion by 2030. This represents a compound annual growth rate of 18% over the forecast period, which stretches from 2021 to 2030.
As the electric vehicle market continues to grow, investors looking to gain broad exposure to the sector may consider investing in the Global X Autonomous and Electric Vehicles ETF (DRIV). This ETF seeks to invest in companies that are involved in the development of autonomous vehicle technology, electric vehicles, and EV components and materials. This includes companies that develop components like lithium batteries, and those that help in the production of key materials like lithium and cobalt.
DRIV has experienced a mixed performance over the past year, with a 14% decline in shares year-over-year as of February 27th, 2023. However, the stock has jumped 17% so far in 2023, which could indicate that investors are beginning to see the potential for growth in the electric vehicle market.
Investors who are considering investing in DRIV should be familiar with some of the major companies that make up the ETF’s heaviest weighted equities. These include Tesla, Nio, and General Motors, among others. These companies are leaders in the electric vehicle market and are likely to continue to play a major role in shaping the future of the industry.
In summary, the electric vehicle market is expected to continue to grow in the coming years, and investors looking to gain broad exposure to the sector may consider investing in the Global X Autonomous and Electric Vehicles ETF. While the ETF has experienced some volatility over the past year, the potential for growth in the electric vehicle market could make it a promising investment opportunity for those willing to take on some risk.
