General Industry Update

In May, President Biden announced significant new tariffs on a range of Chinese goods, including electric vehicles (EVs), semiconductors, batteries, solar cells, steel, and aluminum, amongst other products.

These measures collectively will raise tariffs on $18 billion worth of imports from China, according to the White House. The tariffs on Chinese electric cars will increase to 100%, quadrupling the current 25% rate.

China produces EVs at a fraction of the cost of American models, with their vehicles garnering positive reviews. Chinese EV exports overall have surged by 50% over the past two years, and this has led to fears within the United States that the domestic EV industry will be left behind.¹

While this might, at first, seem like bad news for investment in Chinese automakers, the new tariffs on Chinese EVs will likely have minimal immediate impact due to the limited presence of Chinese-made electric cars in the U.S.

While the tariffs align with Biden’s agenda to bolster American EV adoption and production, supported by the Inflation Reduction Act and Bipartisan Infrastructure Law, Chinese-made EVs account for just over 2% of all EV sales in the U.S.

However, the tariffs could have secondary negative effects on U.S. consumers. Free trade expert Gary Hufbauer from the Peterson Institute for International Economics warns that excluding Chinese EVs, batteries, and solar products from the U.S. market could lead to higher prices and slower adoption of climate-friendly technology amid ongoing U.S.-China trade tensions.²

Company Specific Updates

Nvidia Corporation

Nvidia reported fiscal Q1 earnings in May that surpassed expectations for both sales and earnings, pushing its stock price above the $1,000 per-share mark in extended trading. The results indicate a robust demand for Nvidia’s AI chips and highlight the growing potential in its automotive chip segment.

For the quarter ending April 28, Nvidia posted a net income of $14.88 billion, a substantial increase from the $2.04 billion reported in the same period last year. Nvidia’s core data centre business, which includes its AI chips and related components, soared 427% year-over-year to $22.6 billion on the back of strong sales to companies like Google, Microsoft, Meta, Amazon, and OpenAI.

Meanwhile, Nvidia’s automotive chip sales, while smaller in comparison, are showing promise, with $329 million in revenue during Q1. This segment, though currently modest, underscores Nvidia’s expanding footprint in the automotive and EV industry.³


BYD has unveiled a groundbreaking hybrid powertrain boasting a range of over 2,000 kilometres without the need for recharging or refuelling, escalating the level of competition in the electric vehicle sector against companies like Toyota Motor Corp. and Volkswagen AG.

This advanced powertrain will debut in the mid-size sedans Qin L and Seal 06, introduced at the Beijing Auto Show in April, and will be priced under 100,000 yuan ($13,800), BYD announced during a live-streamed event from China. The significant range enhancement enables some of BYD’s dual-mode plug-in hybrids to travel distances equivalent to routes such as New York to Miami on a single charge and full tank.

In China, BYD dominates the hybrid market, accounting for one out of every two hybrids sold, highlighting their substantial contribution to the company’s revenue and profits. BYD says their plug-in hybrid achieved up to 2,500 kilometres of range in tests. Initially, these upgrades will be available in China, with plans for international export at a later date.⁴

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 (CARS ETF), is Canada’s first automobile innovation ETF. CARS 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 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

Portfolio Strategy and Activity

For the month, VinFast Auto Ltd made the largest contribution to the Fund, followed by Bloom Energy and Fluence Energy Inc. The largest detractors to performance for the month were Polestar, followed by Li Auto Inc and Skyworks Solutions Inc.



  1. Cordes, N. & Watson, K., “Biden announces new tariffs on Chinese EVs, semiconductors, solar cells and more,” CBS News, May 14, 2024;
  2. Subramanian, P., “Why Biden’s tariffs on Chinese EVs will have little immediate impact on the US auto market,” Yahoo Finance, May 15, 2024;
  3. Leswing, K., “Nvidia shares pass $1,000 for first time on AI-driven sales surge,” CNBC, May 22, 2024;
  4. Lee, D., “New BYD Hybrid Can Drive Non-Stop for More Than 2,000 Kilometers,” Bloomberg, May 28, 2024;

Header image source: Getty Images, Credit: Toa55

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 byd  cars etf  china  electric cars  electric vehicles  nvidia  tariff