With Tesla establishing itself as a power house in the auto market, development of electric vehicles by every major auto maker, and even Wall Street turning their attention to the segment, there is little doubt that electric vehicles are the future.
While internal combustion engine vehicles remain less expensive to build than electric vehicles for the time being, battery prices continue to decrease rapidly. In the three years from 2014 to 2016, battery costs fell over 50% from process improvements and scale effects. Along with decreased battery cost has come increased battery capacity and range. With all the advantages that electric vehicles offer, the removal of their single greatest barrier to entry – cost – could mean a major shakeup in consumer buying trends.
Global X, the massive New York-based provider of exchange-traded funds has recently introduced two new ETFs, one dedicated to lithium and battery tech (LIT) and one to autonomous and electric vehicles (DRIV). When Wall street bets on a fundamental market shift this big, you would be wise to bet on it as well.