According to Investor’s Business Daily, sales of electric vehicles (EVs), specifically all-electric or battery electric vehicles (BEVs), will reach approximately 500,000 units in the initial half of 2023. This represents a significant growth of 41% from the 355,000 units sold during the same period in the previous year. Additionally, the total EV sales in the United States in 2023 are projected to exceed 1 million units, which is set to create a milestone.
Sales Figures Quantified
In the second quarter of 2023, U.S. auto sales experienced a more significant increase than initially anticipated. General Motors GM and Ford F witnessed double-digit growth in new vehicle sales, from the previous year, as well as and the previous quarter.
While these automakers did make some strides in the EV market, overall sales of electric vehicles were underwhelming. This circumstance emphasizes the ongoing transition that conventional automakers are going through as they move toward electric vehicles in response to difficult market conditions.
General Motors’s sales release on Wednesday unveiled that it sold 15,652 electric vehicles in the second quarter of 2023, marking a decline from the 20,670 EVs sold in the first quarter. However, Ford achieved remarkable sales figures for all-electric or BEVs. The company sold 14,843 BEVs, a substantial jump of nearly 37% from the 10,866 units sold in the first quarter.
In June alone, Ford’s Mustang Mach-E sales more than doubled, contributing to a notable 35.5% increase in total EV sales. The company attributed the rise to an improved inventory flow of the Mustang Mach-E, resulting from plant retooling earlier in the year. Thursday’s release reflected the positive impacts of the improved inventory flow, indicating that it began to take effect toward the end of the second quarter.
Per Reuters, on Wednesday, Nikola NKLA announced significant growth in the second quarter wholesale and retail sales of its electric vehicles, providing a ray of hope for the start-up amid financial constraints and intense competition. The company reported that retail sales of its trucks doubled, reaching 66 units in the quarter.
This surge in sales signifies an encouraging sign for Nikola as it navigates through a cash crunch and strives to establish a strong foothold in the competitive electric vehicle market. The positive momentum in sales offers a glimmer of optimism for the company’s future prospects.
Rivian RIVN, the EV start-up, exceeded expectations with its second quarter sales report, whereas Tesla TSLA, the EV industry giant, reported sales that surpassed projections.
ETFs in Focus
To help investors navigate through and minimize risks while maximizing exposure to the EV ETF market, we present a selection of ETFs that offer significant market coverage. These ETFs offer a dedicated approach to investing in US EV market assets while effectively managing risks.
Global X Autonomous & Electric Vehicles ETF (DRIV)
The Global X Autonomous & Electric Vehicles ETF seeks to track the performance of the Solactive Autonomous & Electric Vehicles Index. With a basket of 76 securities, the fund has major allocations in the United States (59.89%) and Japan (11.1%).
The fund also has allocations to companies like Tesla (5.76%) and Toyota TM (2.85). Having gathered an asset base of $905.87 million, Global X Autonomous & Electric Vehicles ETF charges an annual fee of 0.68%.
DRIV has gained 30.28% year to date and 23.13% over the past year.
KraneShares Electric Vehicles & Future Mobility ETF (KARS)
The KraneShares Electric Vehicles and Future Mobility Index ETF seeks to measure the performance of the Bloomberg Electric Vehicles Index, having a basket of 65 securities. The fund has investments in companies like Tesla (5.55%) and Samsung SDI (3.67%).
KARS has an asset base of $185.36 million and charges an annual fee of 0.70%. The fund has major allocations in the United States (20.9%), Hong Kong, China (17.67%) and Mainland China (13.57%).
The KraneShares Electric Vehicles and Future Mobility Index ETF has earned 11.90% year to date but has fallen 8.38% over the past year.
SPDR S&P Kensho Smart Mobility ETF (HAIL)
The SPDR S&P Kensho Smart Mobility ETF seeks to track the performance of the S&P Kensho Smart Transportation Index. With a basket of 83 securities, the fund has an asset base of $54.92 million.
The fund has major allocations to Nikola and Rivian, with 3.12% and 1.91%, respectively, with 83.88% of its assets invested in the United States. The fund charges an annual fee of 0.45%. The SPDR S&P Kensho Smart Mobility ETF has returned 14.01% year to date but has lost 2.58% over the past year.
iShares Self-Driving EV and Tech ETF (IDRV)
The iShares Self-Driving EV and Tech ETF seeks to track the results of the NYSE FactSet Global Autonomous Driving and Electric Vehicle Index. With a basket of 60 securities, the fund has an asset base of $455.11 million.
IDRV has major allocations in the consumer discretionary, materials and industrial sectors with a share of 59.30%, 17.94% and 14.63%, respectively. The iShares Self-Driving EV and Tech ETF charges an annual fee of 0.47% and has generated 24.08% year to date and 16.92% over the past year.
