What are Electric vehicles?
Just as a V6 twin-turbo engine cannot be compared to a 1000cc engine produced by a smaller manufacturer, not all electric vehicles (EVs) are created equal. Generally, EVs derive all or some of their power from electricity drawn from the electric grid. More narrowly, EVs consist of two main sub-categories:
* AEVs (all-electric vehicles) are powered by one or more electric motors and receive electricity by plugging into the grid and storing energy in batteries. These consume no petrol/gasoline and produce no tailpipe emissions (black clouds leaving an exhaust).
AEVs include battery and fuel cell electric vehicles, known as BEVs and FCEVs, respectively.
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PHEVs (plug-in hybrid electric vehicles) use both electric motors and an internal combustion engine. The former is powered by a battery, similar to AEVs.
The latter relies on petrol/gasoline like ‘normal’ engines.
Regardless, EVs generate significantly less emissions and their technologies are progressing at a rapid rate.
Watch this space folks, the electric vehicles are (very silently) on their way.
Why invest in the Electric Vehicles industry?
The question remains, if EVs are so obviously a superior, why aren’t there more of them? To date, a more widespread adoption has been hindered only by greater costs of ownership and the rate at which the technology progresses.
However, as more manufacturers are becoming contenders to Tesla in the EV space, battery technology is advancing at a faster rate and costs are declining. For example, Volvo, in typically efficient Scandinavian style, plans to go fully electric by 2025. Furthermore, Deloitte estimates that the EV industry will reach a tipping point in 2022 where the cost of ownership of EVs will no longer be greater than that of internal combustion engine counterparts.
When this occurs, EVs will become a viable and alluring alternative, as owners of these vehicles will no longer be held ransom by fluctuating fuel prices. When this occurs, EVs are predicted to experience rapid growth from 2% total market share in 2018 to 10% by 2024, continuing on a rapid growthpath thereafter.
Just as the internal combustion engine revolutionised the economy, electric motors are set to dominate the automotive industry in years to come.
What’s in this Bundle?
If you want to be smart about investing in the electric vehicles industry, you have to thoroughly research, analyse and understand the background of the individual businesses within the industry while also staying on top of the latest regulatory updates. That's where things start to get complicated and time consuming.
This is where we come in.
We offer you access to a diversified investment Bundle that provides broad exposure to the electric vehicles sector through an industry-leading exchange traded fund (ETF).
This is the iShares Electric Vehicles and Driving Technology UCITS ETF, which includes companies from across the electric vehicles ecosystem. The companies included capture the direct beneficiaries, such as automotive manufacturers, as well as any upstream effects by investing in suppliers to these manufacturers. Notable constituents include Tesla, Nvidia and Intel, amongst 91 others.
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