The electric vehicle market appears to be gaining momentum. Outside of the leader in the market, Tesla (NASDAQ: TSLA), EV firms are posting new records in sales. Six Chinese EV makers fall into this category. This includes the country's leaders in the space, like BYD (OTCMKTS: BYDDY) and several smaller Chinese players. Even U.S. automakers like Ford Motor (NYSE: F) saw its electric vehicle sales hit all-time highs recently.
Still, investment in this space warrants caution. In the United States, the recent rise in EV sales was likely due to expected regulatory changes the Trump Administration will make. Many expect Trump to end the $7,500 EV tax credit that makes the cars more price-competitive with their gas-powered counterparts. But, even if this hurts the competitiveness of U.S. EVs, forecasters still see strong EV sales growth in China. Fastmarkets sees growth slowing marginally from its 31% clip in 2024. Considering China still accounts for the vast majority of EV sales, the industry can push forward. Below, I’ll detail three ETFs that may be able to benefit.
