A combination of regulation and innovation continues to drive growth in the electric vehicle sector.

In late March, California announced requirements that half of all heavy trucks sold by 2035 must be electric. This is part of the state’s strict limits on emissions from transportation, which produces the most greenhouse gas of any sector of the American economy.1

Volkswagen announced large investments meant to better position the auto manufacturer in the EV space, and particularly to make the company’s electric offerings more competitive with Tesla and BYD. VW will invest 180 billion euros ($193 billion US) between 2023 and 2027, with two-thirds (approximately $129 billion) earmarked for vehicle electrification and digitization.2

Volkswagen also announced its first overseas EV battery manufacturing plant will be built in St. Thomas, ON. Due to begin production in 2027, the VW “gigafactory” will produce batteries for at least three other EV manufacturing plants in North America, including VW’s recently announced EV plant in South Carolina,3 as well as an Audi plant with a location still to be determined. The plant will be run by VW subsidiary PowerCo.4

ev manufacturer
Source: Investorintel.com

Meanwhile, the EV price war Tesla began in January continues to pressure both EV manufacturers like BYD and traditional carmakers like Ford and GM to drop prices. BYD is already in a price war in China against Chinese-made Tesla models,5 but early results elsewhere indicate that the price drop is helping stoke demand for Tesla vehicles, as the new price point makes the cars more affordable to more consumers. Wait times for Tesla’s Model Y are up as much as four weeks since the price cut, and Tesla is reportedly working on its “Model 2” car, which is believed to have a $25,000 price. A Tesla at that price point—comparable to a Ford Focus—could prove decisive in Tesla’s quest to dominate not just the EV space, but all of auto manufacturing.6

Updates on EV Manufacturers

Source: BYD

BYD Co. Ltd

BYD announced profits were up more than 400% last year thanks to record sales of 1.86 million electric and plug-in hybrids in 2022. That figure is more than sales in the previous four years combined and represents approximately one-third of all EV sales in China. With BYD now entirely out of the fossil fuel-powered car business, they will be relying on this year’s launch of new luxury EVs to broaden offerings and drive future growth as well as plans for entry into overseas markets, including Australia, Denmark, Norway, Thailand, and the UK.7

Source: Polestar


Swedish electric vehicle maker Polestar (a joint venture between Sweden’s Volvo and Chinese parent company Geely), announced it exceeded its 2022 target of 50,000 vehicles last year and projected deliveries of 80,000 cars in 2023. The company is anticipating this sales increase thanks to the release of its updated Polestar 2 EV, as well as two all-new vehicles debuting in 2023—the Polestar 3 and Polestar 4. Polestar cut its annual net losses in half in 2022 and increased revenue by 84% to $2.5 billion.8

CARS ETF: Investing in Future Cars, Driving Our World Forward

The auto industry is undergoing the biggest transformation in generations and there is a growing demand for ways 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 development of electric cars, self-driving cars, and automobile innovation, including in 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.

For more information on the Evolve Automobile Innovation Index Fund or any of Evolve ETF’s lineup of exchange-traded funds, please visit our website or contact info@evolveetfs.com.

CARS ETF Portfolio Strategy and Activity

For the month, STMicroelectronics made the largest contribution to the Fund, followed by EVgo Inc., and Advanced Micro Devices Inc. The largest detractors to performance for the month were Mullen Automotive Inc., followed by Polestar Automotive Holding UK Ltd, and Stem Inc. On last rebalance, these securities were added to the portfolio: Mullen Automotive Inc. and Renault SA.


  1. Davenport, C., “California to Require Half of All Heavy Trucks Sold by 2035 to Be Electric,” New York Times, March 31, 2023; https://www.nytimes.com/2023/03/31/climate/california-electric-trucks-emissions.html
  2. Root, A., “Volkswagen Doubles Down on EV Spending to Catch Tesla,” Barrons, March 14, 2023; https://www.barrons.com/articles/volkswagen-doubles-down-ev-spending-tesla-stock-byd-62ec192b
  3. Blanco, S., “VW’s Scout Brand Will Build EV Pickups and SUVs in the U.S.,” Car and Driver, March 13, 2023; https://www.caranddriver.com/news/a43190139/vw-scout-ev-build-in-usa/
  4. Butler, C., “Volkswagen to open its first North American EV battery plant in St. Thomas, Ont.,” CBC News, March 13, 2023; https://www.cbc.ca/news/canada/london/volkswagen-ev-battery-plant-ontario-1.6777144
  5. Lee, D. & Lew, L., “BYD’s Net Income Jumps More Than 400% on EV Sales Surge,” BNN Bloomberg, March 28, 2023; https://www.bnnbloomberg.ca/byd-s-net-income-jumps-more-than-400-on-ev-sales-surge-1.1901407
  6. Glover, G. & Nolan, B., “Tesla has declared a price war on electric-vehicle and traditional automakers alike. There are signs Elon Musk’s company is making early gains,” Business Insider, March 9, 2023; https://www.businessinsider.com/tesla-electric-vehicle-price-war-winning-elon-musk-ford-gm-2023-36.
  7. Lee, D. & Lew, L., “BYD’s Net Income Jumps More Than 400% on EV Sales Surge,” BNN Bloomberg, March 28, 2023; https://www.bnnbloomberg.ca/byd-s-net-income-jumps-more-than-400-on-ev-sales-surge-1.1901407
  8. Wayland, M., “Polestar cuts annual losses in half as it ramps up EV production,” CNBC, March 2, 2023; https://www.cnbc.com/2023/03/02/polestar-psny-q4-earnings-ev-production.html
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