There are few investment opportunities that compare to the electric vehicle (EV) space, and investors would be smart to consider allocating some of their portfolios to this multidecade growth story. That’s according to Anthony Sassine, senior investment strategist at KraneShares, who sat down with me earlier today to discuss all things EV.
Speaking at ETF.com’s webinar, “What’s Driving the Electric Vehicle Market & How to Invest,” Sassine said that the transition to electric vehicles from traditional internal combustion engine vehicles is a trend that will last for decades.
Indeed, even though EVs get a lot of attention, they are still a relatively small portion of the overall vehicle market—around 6% globally—with penetration higher in China and Europe than in the U.S.
I asked him what was driving consumers to purchase EVs. Sassine told me that there is a plethora of reasons: consumers being more concerned about the environment; the introduction of attractive new car designs and technologies; government policies/subsidies; and cost reductions.
He mentioned that battery costs, which make up 30-40% of the cost of an EV, have come down 80% over the last six to seven years: “We’re seeing a lot more innovation in that space—innovative chemistries and innovative ways of building these batteries in a way that makes them a lot cheaper and makes the car cheaper.”
While we haven’t reached the point where electric vehicles are… Continue Reading at Yahoo! Finance
