New models are the lifeblood of the automobile industry and that holds true with electric vehicles (EVs), too. Fresh vehicles have the potential to move the share prices of automobile manufacturers and that could happen as 2024 unfolds.
It could be good news that car companies are expected to roll out new EV models in 2024 and 2025. That could be beneficial to exchange traded funds such as the KraneShares Electric Vehicles and Future Mobility ETF (KARS).
KARS turned six years old last month and follows the Bloomberg Electric Vehicles Index. The fund could be at the right place at the right time regarding new EVs. Take the case of BYD Co. Ltd., the ETF’s eighth-largest component. On Monday, the Chinese EV giant revealed plans for an EV supercar that costs more than $233,000 per unit. That car is expected to be an EV rival to Ferrari and Lamborghini, among other vaunted supercar brands.
Other New Models That Could Boost KARS Holdings
While KARS has significant exposure to Chinese EV makers, it’s not a China-specific ETF. It also has stakes in domestic and European car companies. Those include German automobile behemoth Volkswagen AG, which is expected to debut several new EVs in the next two years. Some are even included under the Audi luxury brand.
“Audi is hard at work developing an electric version of its A6 sedan. The A6 E-Tron has already been shown as a concept, and Audi designer Wolf Seebers has said of it, “I can promise you that a lot of what we’re showing here will be available and seen on the road.” There’s also an Avant wagon version in the works, which we’ve seen rolling around as a camouflaged prototype,” reported John Beltz Snyder for Auto Blog.
Sweden-based Volvo, another KARS holding, could debut a new EV in the U.S. market next year. This model could rival comparable offerings from some other KARS member firms.
“Volvo’s electric answer to the XC90, the 2025 Volvo EX90, is set to begin production in South Carolina in the first half of 2024. With a starting price of $77,990, this luxury three-row SUV will compete with the slightly more expensive Mercedes-Benz EQE SUV, BMW iX, Rivian R1S, and Tesla Model X,” according to Auto Blog.
As for Tesla (NASDAQ: TSLA), which accounts for 3.74% of the KARS portfolio, Elon Musk’s company could start production on the widely anticipated, highly secretive Redwood project next year.
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