KraneShares Electric Vehicles and Future Mobility Index ETF [KARS] Stock Forecast

BYD, an electric vehicle manufacturing behemoth in China and the second largest global EV company, estimates that its 2022 net income hit a record 17 billion yuan ($2.5 billion USD) in an initial filing with the Shenzhen Stock Exchange, reported Bloomberg.

Electric vehicle growth might be slowing marginally this year, but it's still on track to beat last year's record of over 10 million deliveries. The KraneShares Electric Vehicles and Future Mobility ETF (NYSE: KARS) is already off to a good start for the year and offers investment opportunity across the EV value chain.

KARS provides diverse exposure to the entire EV value chain without overweight exposure to Tesla. I believe it is poised to do well, driven by: Increasing demand for EVs as total cost of ownership falls.

The recently passed IRA and IIJA will direct billions of dollars toward EVs and EV infrastructure over the next decade. The IRA and IIJA are already combining to materially impact the capacity of domestic EV supply chains with new commitments across vehicle manufacturers, mining, and battery production.

Electric Vehicles ETFs have been gaining massively this year on the back of superb performances by global companies.

We expect that global car sales will rise by approximately 4% in 2023 despite a downbeat outlook for the global economy. This is due to more consistent production volumes, the delayed demand backlog and positive growth expectations for China.

The quick pace of electric vehicle (EV) adoption could easily turn from evolution to revolution. This opens up opportunities for exchange traded funds (ETFs) that can build off this exponential growth in the EV sector and ancillary sectors that support the industry.

Two Chinese companies, Contemporary Amperex Technology Co and BYD, have collectively surpassed more than 50% market share of the global battery market, reported Financial Times. Contemporary Amperex, more commonly known as CATL, is the largest producer of batteries worldwide and doubled battery sales last year through November, creating enough batteries for 3.3 million standard-sized EVs.

No matter how you personally feel about climate change, there's no denying that some governments and corporations are taking emissions seriously and changing their practices.

Electric vehicle stocks had a rough ride in 2022, all thanks to shortages of essential supplies, sky-high inflation, rising interest rates and issues over the pandemic. However, don't count them out just yet.

KraneShares Electric Vehicles and Future Mobility Index ETF is a US stock and trading under the symbol KARS

KraneShares Electric Vehicles and Future Mobility Index ETF stock price is $33.54 today.

Yes, KraneShares Electric Vehicles and Future Mobility Index ETF is a publicly traded company.