Investing in the Surging Electric Vehicle Industry With KARS | ETF Trends

Tesla logged its sixth consecutive quarter of record deliveries in December, delivering 308,600 vehicles, far exceeding analysts’ predictions of 263,026, reports Reuters.

The deliveries for the last quarter that ran from October through December reflect a 70% growth year-over-year for Tesla, and were 30% higher than the previous quarter’s record deliveries. It follows Musk’s assertion that the automaker would be able to maintain a growth rate of 50% annually.

The outperformance by Tesla is a general trend of growth being experienced within the electric vehicle industry and is seen in the outperformance of EV companies in China, the largest global EV market. In 2021, there were approximately 3 million EVs sold in China, according to end-of-year reports from automotive companies in China, China Last Night by KraneShares reports.

All of the major EV manufacturers in China reported over 100% growth in their sales for the year, reflecting a healthy appetite from consumers for electric vehicles. Li Auto reported that its 2021 sales grew by 177%, with new vehicle sales at 90,491 for the year; XPeng’s sales skyrocketed 263%, with 98,155 new vehicles sold; and Nio’s sales grew 109%, reflecting new vehicle sales of 91,429.

BYD had the strongest growth by far of the Chinese EV companies, having sold 189,689 EVs in 2020 and closing out 2021 with 603,783 in sales. The market, particularly in China, is booming with anticipation of even greater growth as countries put increasing pressure on moving away from combustion engines to electric ones.

Investing in the EV-lution With KARS

The KraneShares Electric Vehicles and Future Mobility ETF (NYSE: KARS) invests in Tesla, Ford, Xpeng, Nio, BYD, and many of the biggest players globally in the electric vehicle industry.

KARS measures the performance of the Bloomberg Electric Vehicles Index, which tracks the industry holistically, including exposure to electric vehicle manufacturers, electric vehicle components, batteries, hydrogen fuel cells, and the raw materials utilized in the synthesis of producing parts for electric vehicles.

The index has strict qualification criteria. Companies must be part of the Bloomberg World Equity Aggregate Index, have a minimum free-float market cap of $500 million, and have a 90-day average daily traded value of $5 million.

Tesla (TSLA) is carried at a 6.79% weighting in the fund, Ford (F) is carried at a 5.92% weighting, and XPeng is carried at a 3.18% weighting.

The ETF has an expense ratio of 0.70%.

For more news, information, and strategy, visit the China Insights Channel.