These days when you speak to friends on investment and trading, there is bound to be some discussion on Electric Vehicle (EV) counters such as Tesla, Nio, Xpeng or even ETFs like the Global X Lithium & Battery Tech ETF, LIT (link https://www.globalxetfs.com/funds/lit/). And today almost every active investor or trader has invested in one of these major EV companies.

The EV trend

The number of electric cars has jumped 5 fold from 2 million in 2016 to cross 10 million in 2020 according to data compiled by International Energy Agency (IEA)¹. And despite the COVID-19 pandemic fallout, the number of electric car registrations in 2020 continues to increase in major markets. The development of the battery-powered electric vehicles is one of the main catalysts driving the expansion. Battery-powered electric vehicles accounted for two-thirds of the new electric car registrations in 2020, with China having the largest fleet of 4.5 million electric cars.

Source: Phillip Capital Research - 4 Jan 2022