Electric Vehicle (EV) ETFs Struggling: Near-Term Turnaround Likely?

Zacks05-13

The electric vehicle (EV) industry is dwindling between perils and possibilities. The EV market has experienced a deceleration in its previously rapid growth. Shares of EV startups, including Rivian ...

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Shares of EV startups, including Rivian ...</p>\n\n<a href=\"https://finance.yahoo.com/news/electric-vehicle-ev-etfs-struggling-122700764.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Electric Vehicle (EV) ETFs Struggling: Near-Term Turnaround Likely?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nElectric Vehicle (EV) ETFs Struggling: Near-Term Turnaround Likely?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-13 20:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/electric-vehicle-ev-etfs-struggling-122700764.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The electric vehicle (EV) industry is dwindling between perils and possibilities. The EV market has experienced a deceleration in its previously rapid growth. Shares of EV startups, including Rivian ...</p>\n\n<a href=\"https://finance.yahoo.com/news/electric-vehicle-ev-etfs-struggling-122700764.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4559","symbol_name":"巴菲特持仓","start_time":0,"source_url":"https://finance.yahoo.com/news/electric-vehicle-ev-etfs-struggling-122700764.html","article_id":"2435373045","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/m7h8AcPROMromz5UJ5.5yQ--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/76de46512b6b2ed03cb613b33bb84828"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2435373045","pubTimestamp":1715603220,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The electric vehicle  industry is dwindling between perils and possibilities. The EV market has experienced a deceleration in its previously rapid growth. Shares of EV startups, including Rivian RIVN, Lucid LCID, and Nikola NKLA, have tumbled to near-record lows. Nikola, in particular, faces the risk of delisting from the Nasdaq, prompting executives to explore options like a reverse stock split to maintain compliance.Global X Autonomous & Electric Vehicles ETF DRIV is off 0.8% this year and has advanced 2.7% past month  versus a 3.2% monthly uptick in iShares Core S&P 500 ETF IVV. Faling sales and a slump in prices have led to this “EV winter.”A recent study showed that the average price of an EV dropped 31.8% in the past year compared to just 3.6% for internal combustion engine vehicles,per the study from iSeeCars.com, as quoted on CNBC. Also, the fast depreciation rate could discourage car buyers from preferring EVs to combustion engine vehicles.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4559":"巴菲特持仓","LU2756315664.SGD":"ALLIANZ INCOME AND GROWTH \"AMI\" (SGDHDG) INC","IDRV":"iShares Self-Driving EV and Tech ETF","BK4550":"红杉资本持仓","LU0823414478.USD":"法巴经典能源转换基金","KARS":"KraneShares Electric Vehicles and Future Mobility Index ETF","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4551":"寇图资本持仓","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","LU1861558580.USD":"日兴方舟颠覆性创新基金B","NEV":"Nuveen Enhanced Municipal Value","BK4099":"汽车制造商","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","BK4511":"特斯拉概念","LU1551013425.SGD":"Allianz Income and Growth Cl AMg2 DIS H2-SGD","DRIV":"Global X Autonomous & Electric Vehicles ETF","BK4548":"巴美列捷福持仓","VOO":"Vanguard标普500ETF","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","RIVN":"Rivian Automotive, Inc.","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","CARZ":"First Trust S-Network Future Vehicles & Technology ETF","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","03160":"华夏日股对冲","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","LU1839511570.USD":"WELLS FARGO GLOBAL FACTOR ENHANCED EQUITY \"I\" (USD) ACC","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","LU0823411888.USD":"法巴消费创新基金 Cap","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","LU0082616367.USD":"摩根大通美国科技A（dist）","BK4534":"瑞士信贷持仓","TM":"丰田汽车","NKLA":"Nikola Corporation","BK4555":"新能源车","BK4533":"AQR资本管理(全球第二大对冲基金)","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","FDN":"First Trust Dow Jones Internet I","IVV":"标普500指数ETF","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","BK4149":"建筑机械与重型卡车","LCID":"Lucid Group Inc"},"translate_title":"电动汽车（EV）ETF苦苦挣扎：近期可能出现转机？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"LCID":1,"TM":1,"RIVN":1,"NEV":1,"KARS":1,"IVV":1,"IDRV":1,"DRIV":1,"CARZ":1,"NKLA":0.9,"FDN":0.9,"VOO":0.81,"03160":0.6},"content_text":"The electric vehicle (EV) industry is dwindling between perils and possibilities. The EV market has experienced a deceleration in its previously rapid growth. Shares of EV startups, including Rivian RIVN, Lucid LCID, and Nikola NKLA, have tumbled to near-record lows. Nikola, in particular, faces the risk of delisting from the Nasdaq, prompting executives to explore options like a reverse stock split to maintain compliance.\nGlobal X Autonomous & Electric Vehicles ETF DRIV is off 0.8% this year and has advanced 2.7% past month (as of May 10, 2024) versus a 3.2% monthly uptick in iShares Core S&P 500 ETF IVV. Faling sales and a slump in prices have led to this “EV winter.”\nA recent study showed that the average price of an EV dropped 31.8% in the past year compared to just 3.6% for internal combustion engine vehicles, per the study from iSeeCars.com, as quoted on CNBC. Also, the fast depreciation rate could discourage car buyers from preferring EVs to combustion engine vehicles.\nOnce-burgeoning electric vehicle startups, powered by favorable financial conditions and investor optimism, are now grappling with the tough scenarios of the market. Even industry leader Tesla TSLA is not immune to the market downturn. The company has been resorting to various moves, including workforce reductions and price cuts in order to navigate the evolving landscape.\nAgainst this backdrop, below we highlight a few factors that could help the struggling industry to turn around ahead.\nFocus on Cash Generation\nCash reserves have become a primary focus for executives of companies like Rivian Automotive, Lucid Group, and Nikola Corp. Amid slower-than-expected EV adoption and fierce competition, maintaining adequate cash flow is crucial for survival. Hence, EV startups are striving to shore up cash reserves.\nCost Reduction Measures\nTo weather the storm, these companies are implementing various cost-cutting measures. These include job cuts, production adjustments, renegotiating supplier contracts, and reprioritizing initiatives to optimize spending.\nChinese EV Sales Spearheading Industry Growth\nActivities are ramping up in China. In March, Neighborhood Electric Vehicle (NEV) sales in China surpassed a share of 40% in overall car sales for the first time. In the first quarter of this year, nearly 1.9 million electric cars were sold in China, marking an almost 35% increase compared to sales in the first quarter of 2023. However, the electric vehicle sales growth slowed in the United States.\nIncreasing EV-AI Association\nForeign carmakers are flocking to join Chinese counterparts in artificial intelligence and other smart car technology. Japan’s Toyota Motor TM would team up with Chinese gaming and social media giant Tencent on AI and big data. German auto giant Volkswagen was also seen promoting its partnership with Chinese EV startup XPeng.\nRenault lately mentioned engaging in \"pivotal conversations\" with Chinese EV manufacturer Li Auto and Xiaomi to delve into EV and smart-vehicle technologies. Xiaomi, renowned for its smartphones, recently unveiled its inaugural electric car, positioning it as a competitor to Porsche and Tesla.\nAnalysts' Perspectives\nWall Street analysts are cautious, describing the current state of the EV market as an \"EV winter.\" However, some remain cautiously optimistic, foreseeing potential for recovery over the next 12-18 months.\nHybrid Vehicles: A Feasible Alternative\nWhile the EV market faces challenges, hybrid vehicles are gaining traction as this seems to be a practical transition from gasoline to electric vehicles. The average price for used hybrids dropped by only 6.5%, making them a more stable investment compared to EVs. Hence, the medium-term fate of transportation is probably hybrid vehicle and the long-term fate is electric vehicle.\nETFs in Focus\nThis scenario puts focus on DRIV, KraneShares Electric Vehicles & Future Mobility Index ETF KARS, iShares Self-driving EV & Tech ETF IDRV and First Trust S-Network Future Vehicles & Technology ETF CARZ. Interested investors may keep a close track of industry news and look for better entry points in these ETFs.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nToyota Motor Corporation (TM) : Free Stock Analysis Report\nGlobal X Autonomous & Electric Vehicles ETF (DRIV): ETF Research Reports\nTesla, Inc. (TSLA) : Free Stock Analysis Report\nFirst Trust S-Network Future Vehicles & Technology ETF (CARZ): ETF Research Reports\niShares Core S&P 500 ETF (IVV): ETF Research Reports\nKraneShares Electric Vehicles and Future Mobility Index ETF (KARS): ETF Research Reports\niShares Self-Driving EV and Tech ETF (IDRV): ETF Research Reports\nNikola Corporation (NKLA) : Free Stock Analysis Report\nLucid Group, Inc. (LCID) : Free Stock Analysis Report\nRivian Automotive, Inc. (RIVN) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":2,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2435373045"}