Joe Biden Chokes China's EV Industry, Proposes Fresh Regulations To Reshore Auto Supply Chain: How To Invest In The Initiative
Portfolio Pulse from Melanie Schaffer
President Joe Biden has proposed new regulations to boost U.S. production of electric vehicle (EV) batteries and components, potentially reshaping the auto supply chain. The Tema ETF Trust Tema American Reshoring ETF (NYSE:RSHO) surged 2.34% on Friday in response to these proposals. The regulations could incentivize U.S.-based EV automakers to source materials domestically, benefiting from federal tax credits. This comes as Chinese EV manufacturers face challenges in the U.S. market due to existing tariffs. RSHO, which invests in companies likely to benefit from reshoring, has outperformed the S&P 500 since its inception. The ETF is currently in an uptrend but is showing signs of being overbought.
December 04, 2023 | 5:08 pm
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RSHO, an ETF investing in companies set to benefit from U.S. reshoring efforts, surged after Biden's proposal to boost domestic EV battery production. It has outperformed the S&P 500 and is currently in an uptrend, though it may be overbought.
RSHO's surge is directly linked to Biden's proposed regulations, which are designed to benefit domestic production and supply chains. As the ETF holds companies that could gain from these initiatives, its relevance is high. The importance is significant as reshoring is a key focus of the ETF's investment strategy. Confidence in the analysis is strong due to the clear connection between the ETF's purpose and the regulatory changes, though the overbought condition suggests caution for short-term traders.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100