We haven’t seen a revolution in car making like electric vehicles (EVs) in about a century, harkening back to when the automobile was first invented. In other words, the shift from gas-powered cars to electric cars has been among the most profound technological developments in decades.

Want proof? Tesla has a valuation of over $1.0 trillion despite the vehicle manufacturer accounting for less than 1% of global car sales. What that signals is that the market is bullish on electric car stocks and investments.

What is it about electric cars that have so many investors excited? Two words: automobile innovation.

Let’s take a look at three auto innovations on the horizon that are likely to continue the upward trending growth of the electric vehicle industry.

Electric Cars and Electric Trucks

The production and adoption of electric trucks may be slower than electric vehicles. But as innovations in electric batteries improve, and with more countries instituting bans and taxes on carbon-emitting vehicles in the near future, we expect to see more electric trucks on the road in the coming years.

Freight trucks are among the biggest polluters. Apart from reducing carbon emissions, switching over to electric trucks could also save an owner roughly $200,000 over 15 years.

Autonomous Driving and Automobile Innovation

Autonomous vehicles are no longer restricted to science fiction. We have cars on the road today that have some capacity for autonomous driving.

This autonomous vehicle market is expected to triple in value over the next five years, hitting $61.93 billion by the year 2026. Self-driving capabilities in cars are increasing due to improvements in technological innovations such as machine learning and artificial intelligence, and it’s not slowing down.

Consumer-facing autonomous vehicles aren’t the only vehicles in the market getting an upgrade. There’s also the likelihood that autonomous freight trucks will soon be seen cross-country, with test trucks already on the road making deliveries.

Considering that the trucking business generated $700 billion in revenue in 2017 in the U.S. alone, being able to cut down on costs by implementing autonomous driving for freight trucks could generate sizeable gains for companies adopting the technology.

It’s also worth noting that while autonomous vehicles can technically be gas-powered as well, with many countries and automakers switching over to permitting electric-vehicle-only production in the near future, more automakers are developing vehicles combining both electric and autonomous technologies.

EV Charging Stations and the Adoption of Electric Vehicles

EV charging stations, once a rarity, are now becoming fairly standard.

This year, the U.S. dedicated $7.5 billion in its recently passed infrastructure bill to develop EV charging stations and related programs, with a target of 500,000 public stations by 2030. Countries like the UK, Netherlands, and Germany have led the charge in Europe, installing hundreds of stations across their respective countries.

With new batteries holding longer charges and the proliferation of charging stations, some of the major hurdles on further adoption of electric vehicles are becoming irrelevant. And that means better infrastructure for electric vehicles, more EVs on the road, and overall growth in the industry.

Why Choose an Electric Vehicle ETF?

While impressive gains have been made over the years, electric cars are still classified as an emergent industry. This means that there is a higher degree of volatility and unexpected market swings – which could result in tremendous gains (like TSLA’s 100% gain over the past 12 months) but also tremendous losses if you bet on the losing stocks.

In order to simplify investing in the automotive innovation industry, you can eliminate the difficulty of stock picking by choosing to invest in an ETF. Investing in an electric vehicle ETF helps to limit the risk in your portfolio by giving you exposure to a larger basket of automobile innovation and electric car stocks without tying yourself to a single company’s performance.

Investing in Electric Cars with CARS ETF

If you’re looking to invest in an electric vehicle ETF, consider Canada’s first automobile innovation ETF, Evolve Automobile Innovation Index Fund (TSX Ticker: CARS). CARS ETF invests in global companies that are directly or indirectly involved in developing electric drivetrains, autonomous driving or network connected services for automobiles. Shift your investments into gear with CARS in your portfolio. For more information on this fund, please click here: https://evolveetfs.com/cars/

For the latest information on auto innovation investing and industry updates on related investment products, sign up for our weekly newsletter.


*Note: All figures in USD.

The contents of this blog are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. These contents are not an offer or solicitation of an offer or a recommendation to buy or sell any securities or financial instrument, nor shall it be deemed to provide investment, tax or accounting advice. The information contained herein is intended for informational purposes only.
Commissions, management fees and expenses all may be associated with exchange traded funds (ETFs) and mutual funds (funds). Please read the prospectus before investing. ETFs and mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated. There are risks involved with investing in ETFs and mutual funds. Please read the prospectus for a complete description of risks relevant to ETFs and mutual funds. Investors may incur customary brokerage commissions in buying or selling ETF and mutual fund units.
Certain statements contained in this blog may constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “anticipate”, “believe”, “intend” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Evolve Funds undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.

Tags automotive etf  autonomous driving  autonomous vehicles  cars etf  CARS ETF TSX  electric car ETF  electric car stocks  electric cars  electric truck  electric vehicle ETF  electric vehicle stocks  electric vehicles  EV  EV charging stations  Evolve Automobile Innovation Index Fund  evolve CARS ETF  investing