Key Takeaways
- Growing demand for electric vehicles (EVs) presents a long-term opportunity for stock investors.
- Owning EVs is becoming more practical and affordable, and automakers are releasing increasingly efficient models.
- Megatrend ETFs can help capture the potential of EVs while keeping investors diversified.
Sales of electric vehicles (EVs) hit a record in 2020, a milestone fueled by climate-conscious buyers who can be choosier and pay less in an increasingly competitive market.1
For investors, a confluence of trends has turned the EV industry into one of the fastest-growing corners of the low-carbon economy and could represent a long-term growth opportunity. Recent technological advances are making the production and ownership of EVs easier and more efficient. For example, the average cost of lithium-ion batteries, the key technology that powers EVs, has fallen 88% over the past 10 years — dropping the price of EVs closer to comparable gasoline-powered vehicles.2 In some cases, battery charging times have fallen to as low as five minutes, on par with filling up a tank with gasoline.3