Electric vehicles (EVs) sales and investments have not done well as per the expectations, with American Tesla and Chinese Nio recording below target sales for the first quarter of 2021. However, EVs’ future is promising, and the ARK Innovation ETF […]
Electric vehicles (EVs) sales and investments have not done well as per the expectations, with American Tesla and Chinese Nio recording below target sales for the first quarter of 2021. However, EVs’ future is promising, and the ARK Innovation ETF projects better gains for the rest of the year.
“Companies within ARKK include those that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the areas of DNA technologies, industrial innovation in energy, automation, and manufacturing, increased use of shared technology, infrastructure, and services,” explains ARK Invest. Disruptive technologies are strong performance in stocks, and battery-powered vehicles are one of the crucial ideas that will change the environment and, consequently, the economy.
“202 set off a new trend for electric vehicle companies, many opting to go public via Special Purpose Acquisition Companies (SPACs). Among the key EV names that took this route were Nikola, Hyliion Holdings, Fisker, Lordstown Motors, and QuantumScape,” noted a report compiled by ComprarAcciones.com.
The report further indicated that the switch to green cars might cost over $2.5 trillion globally over the next ten years. Mergers between EV startups and SPACs are one way of raising the needed funds if the transition to electric mobility is to be realized. According to UBS Group’s forecasts, electric vehicle sales will account for 20% of total vehicle sales globally by 2025. This percentage will shoot to 50% by 2030.
“Tesla and other EV pure-plays widen their tech lead over legacy Auto Inc., while the EV penetration curve is very steep. The gap becomes particularly large on the software side-legacy original equipment manufacturers (OEMs) lose market share as their product is seen as inferior by consumers,” said the UBS report. Although Chinese automaker Nio is not a member of ARKK, it is a close competitor for Elon Musk’s Tesla, and both companies have made good returns over the past year.
Research by Blastpoint, an analytics firm, shows that in 2020, EV sales in the US recorded a thirty percent high. In 2021, this value is slated to jump to 71%. Furthermore, automakers are expected to add new EV models this year, with the current 17 models in the US being topped up to about thirty models.
Nations worldwide are striving to contribute to the Paris Agreement pledge by reducing air pollution and greenhouse gas emissions on many scales. Adopting renewable energy and electrifying mobility have been endorsed by administrations to reach the zero-carbon target by midcentury.https://newsinpaphos.com/