Skip to content

Electric Vehicle Industry Report For 2022

After being one of the best-performers in 2020, the electric vehicle (EV) industry added to these gains in 2021, although there was considerably more volatility. In 2021, the KraneShares Electric Vehicle and Mobility ETF (KARS) was up 22% which is slightly below the S&P 500’s YTD gain of 25%. In comparison, KARS had an 80% gain in 2020 vs the S&P 500’s gain of 16%.

However, 2022 does bring with it some EV industry headwinds. A major challenge will be the Fed’s hawkish pivot and the increase in short-term rates which leads to outflows in growth stocks.

Another challenge for the industry is supply chain issues with shortages of key components leading to production below capacity. Many companies will also have to reconfigure their production and assembly to account for increased EVs as well as develop new supply chains.

Still, there are many reasons for the industry’s outperformance and reasons to be bullish on its longer-term outlook…

 Discover more about the electric vehicle industry here

The post Electric Vehicle Industry Report for 2022 originally appeared at StockNews.