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  Rising Demand for Electric Vehicles Highlights the Need for Investments in the Power Grid: Which ETFs May Benefit?
Posted Under: ETFs
The outlook for electric vehicles (EVs) has strengthened recently, supported by decreasing costs for advanced battery technology and increasing support from automakers, politicians, and consumers.  In our view, a shift to EVs over the next decade may boost electricity consumption and contribute to the need for massive investments in electrical infrastructure around the world.  This may benefit companies involved in both the build out and management of those assets.

What's Driving Growth for Electric Vehicles?
While a potential transition to electric vehicles is not without hurdles, public policy around the world has grown increasingly supportive.  In the US, President Joe Biden signed an executive order on August 5, 2021, calling for 50% of new passenger vehicles sold in the US to be zero-emission electric vehicles by 2030.1 For context, EVs represented just 2% of US auto sales in 2020.2 While this order is not legally binding, executives from several automakers joined the President in announcing their own goals of having EVs represent 40-50% of annual US sales volume by 2030.3

1 WhiteHouse.gov, Executive Order on Strengthening American Leadership in Clean Cars and Trucks, 8/5/21.
2 International Energy Agency, Global EV Outlook 2020.
3 Reuters, Biden seeks to make half of new U.S. auto fleet electric by 2030, 8/5/21.

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Posted on Friday, September 17, 2021 @ 3:42 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
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