Electric and autonomous vehicles are the next big trend in the automotive industry. Electric car sales were up more than 25% in the U.S. in 2017 to a total of nearly 200,000 sold. This was accomplished in a year where overall vehicle sales were slightly down. EV sales still account for just over 1% of total vehicle sales, so the opportunity lying ahead for this industry is huge. Bloomberg New Energy Finance’s annual Electric Vehicle Outlook report for 2017 includes this rosy forecast.
“The EV revolution is going to hit the car market even harder and faster than BNEF predicted a year ago. EVs are on track to accelerate to 54% of new car sales by 2040. Tumbling battery prices mean that EVs will have lower lifetime costs, and will be cheaper to buy, than internal combustion engine (NYSE:ICE) cars in most countries by 2025-29.”
As Tesla (TSLA) and other larger automakers continue the development and production of their electric vehicle lines and the technology behind autonomous vehicles improves, this looks like a high growth area for years to come. That’s the motivation behind the launch of the Global X Autonomous & Electric Vehicles ETF (DRIV).