Electric vehicles remain in high demand, which is evident by the recent delivery and production figures carmakers have been reporting.
Tesla Inc., the world’s leading manufacturer of electric vehicles (EVs), said that it delivered 343,000 EVs in the third quarter of 2022. Total EV production amounted to 365,000 units. The company also said that it produced 19,935 Model S and Model X vehicles and 345,988 of its Model 3 and Model Y vehicles.1
Furthermore, Tesla is planning to double its EV sales in Germany and sell 80,000 units for 2022. In 2021, the company sold just 39,714 in Germany. It’s worth noting that Tesla recently built its first European Gigafactory in Gruenheide, a city near Berlin, which opened in March 2022.2
In China, one of the largest markets for EVs, automakers have suffered due to the declining Chinese economy, issues around supply chain, and lockdowns due to COVID-19 outbreaks in major cities. However, EV sales remain robust and carmakers in the country remain resilient.
Li Auto Inc delivered 4,571 vehicles in August. Meanwhile, Xpeng Inc., also held by the fund, delivered 9,578 vehicles in August. Year-over-year, deliveries were up 33% for Xpeng Inc.
BYD Co Ltd., a Chinese manufacturer of automotive products, announced that it will be setting up an electric vehicle production facility in Thailand and aims to produce 150,000 passenger cars per year starting in 2024. The facility will be located in the eastern province of Rayong, and this project will be worth $491.49 million.3
Rivian Automotive’s Electric Trucks & Vans
Rivian Automotive, Inc. is a California-based manufacturer of electric vehicles. Recently, it was certified and registered by Transport Canada to sell its trucks and SUVs in Canada. The Canadian regulators certified and listed Rivian’s R1T (Truck OEM) and R1S (MPV) on the Preclearance List of Recognized Vehicle Importers.
There’s a market for electric trucks in Canada. Since Ford’s F-150 Lightning and Hummer EVs are already on the road, Rivian Automotive’s electric trucks could cater to that market and provide buyers with more choices.4
Mercedes-Benz Vans and Rivian also recently announced that they will begin a new joint venture for electric van production. The two automakers will be constructing an electric-only factory that will focus on building vans that are for Rivian and Mercedes-Benz.
Rivian is also working with Amazon to build a 100,000-unit fleet of Electric Delivery Vans (EDV) by 2030.5
EVgo & GM’s Charging Stations
EVgo, Inc., a fast-charging network provider in the U.S., announced its financial performance for the most recent quarter. The company added 67,000 new customer accounts during the second quarter of 2022, bringing their total customer accounts to 444,000. Customer accounts increased 60% year-over-year.
In July 2022, EVgo announced an agreement with GM and the Pilot Company that will result in 2,000 new stalls at up to 500 sites across the U.S. over the next few years. EVgo will be responsible for procuring, designing, installing, operating, and maintaining the charging stations.
EVgo also launched the Autocharge+ functionality during the second quarter, which essentially simplifies and accelerates the charging experience for customers.6
Investing in Electric Cars with CARS ETF
The auto industry is poised to undergo the biggest transformation in a lifetime. With the automobile industry racing towards autonomous driving and electrification, there is a growing demand and opportunity to invest in this industry.
The Evolve Automobile Innovation Index Fund (TSX Ticker: CARS), CARS ETF, is Canada’s first automobile innovation ETF. CARS ETF takes a diversified approach to invest in the supply chains behind autonomous, connected, electric, and shared vehicles. The fund has a portfolio of companies involved in the development of electric cars, self-driving cars, and automobile innovation. These include some of the world’s leading manufacturers and automobile companies. CARS ETF is a great way to gain access to the future of the automobile and shift your investments into gear.
CARS ETF Portfolio Strategy and Activity
For the month, SES AI Corp. made the largest contribution to the Fund, followed by Vitesco Technologies Group, and Rivian Automotive Inc. The largest detractors to performance for the month were Ceres Power Holdings Plc, followed by ITM Power Plc. and Canoo Inc. By weight, the Fund’s largest geographic exposure was to United States, followed by Germany and China.
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- Kolodny, L., “Tesla delivered 343,000 vehicles in the third quarter of 2022,” CNBC, October 2, 2022; https://www.cnbc.com/2022/10/02/tesla-tsla-q3-2022-vehicle-delivery-and-production-numbers.html.
- “Tesla aims to double vehicle sales in Germany in 2022, Automobilwoche reports,” Reuters, September 18, 2022; https://www.reuters.com/business/autos-transportation/tesla-aims-double-vehicle-sales-germany-2022-automobilwoche-2022-09-18/.
- Setboonsarng, C., “China’s BYD to start EV production in Thailand by 2024,” Reuters, September 8, 2022; https://www.reuters.com/business/autos-transportation/chinas-byd-set-up-ev-plant-thailand-2022-09-08/.
- Kana, J., “Rivian gets approval to market EV trucks in Canada,” Driving.ca, September 30, 2022; https://driving.ca/auto-news/news/rivian-gets-approval-to-market-ev-trucks-in-canada.
- Miller, C., “Rivian and Mercedes Agree to Launch Joint Venture for Electric Vans,” Car and Driver, September 9, 2022; https://www.caranddriver.com/news/a41136076/rivian-and-mercedes-joint-venture-electric-vans/.
- Yahoo! Finance, August 9, 2022; https://finance.yahoo.com/news/evgo-inc-reports-second-quarter-110000812.html.