Rising oil and natural gas prices, support from President Biden’s infrastructure spending bill, and an EV tax credit should boost the EV industry’s growth. Furthermore, EV manufacturers’ efforts to develop innovative fleet designs and improve battery technology should bode well for the industry. Indeed, the global EV market is expected to grow at a 15.4% CAGR to $187.94 billion by 2026.
Despite the global chip shortage and input price inflation, which are keeping EV makers under pressure, EV sales hit a record high in the fourth quarter of 2021. Many analysts expect the sales momentum to accelerate this year with the anticipated easing of the chip shortage. Investors’ interest in this space is evident in the Global X Autonomous & Electric Vehicles ETF’s (DRIV) 6.3% gains over the past nine months.
