The Chevrolet Bolt will be released at a $6,000 price cut, dropping from $31,500 to $25,600 MSRP, and will be the cheapest electric vehicle on the market at sticker value, reported Electrek.
The price cut will apply to all models and trim packages within the Bolt lineup. That means that the Bolt beats out the Nissan Leaf as the cheapest EV, though the Leaf qualifies for the U.S. federal incentive package for EV purchases and the Bolt does not. Nissan is likely to reach their 200,000 vehicle limit for this stimulus this year, however, particularly when the second offering from Nissan drops later this year, the Ariya.
Options within the EV market have grown increasingly slim as shortages and supply chain constraints have impacted supply, hitting at a time when demand is skyrocketing due to soaring gas prices.
Chevrolet is an arm of General Motors, and GM has been hard at work on its next evolution of EVs, built on their Ultium platform. All of the upcoming EVs from GM, including the Sierra, Equinox, Silverado, GMC Hummer, and Cadillac Lyriq will rely on the platform with the Bolt being one of the last offerings from the Orion plant before it is converted over to the new platform.
The price reduction of the Bolt comes at a time when increasingly more manufacturers are looking to bring EVs to market, competing for market share in a high-demand industry.
Investing in GM and EVs With KARS
For investors looking to capture the potential growth of major EV producers globally, the KraneShares Electric Vehicles and Future Mobility ETF (NYSE: KARS) offers a good solution.
KARS invests in many familiar car companies such as GM, Tesla, Ford, Mercedes-Benz, BMW, and major Chinese EV manufacturers such as Xpeng, Nio, and BYD, some of the biggest companies in the global electric vehicle industry. General Motors is carried within the fund at a 4.35% weighting.
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.
The ETF has an expense ratio of 0.70%.
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