Look Closer: Cathie Wood's Ark Analyst Explains Why EVs Seem To Be 'Entering, Not Ending, A Traditional Adoption Curve'
Portfolio Pulse from Shanthi Rexaline
Cathie Wood's Ark Investment Management, through its Director of Research Sam Korus, argues that electric vehicles (EVs) are not seeing a decline in adoption but are instead entering a traditional adoption curve. Despite a slowdown in sales growth rates from 113% in 2021 to 28% in 2023, the global market share of EVs nearly doubled from 4.8 million units to around 10 million units, indicating healthy market dynamics. Korus emphasizes the importance of market share over growth rates and suggests that EVs, with only a 13% global market share, are still in the early stages of adoption. He warns that traditional automakers reducing EV investments may miss out on the industry's transition.
April 11, 2024 | 7:21 am
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POSITIVE IMPACT
The KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) experienced a decline, closing down 2.68% at $22.18. This movement reflects the broader market's reaction to the evolving dynamics within the EV sector, as highlighted by Ark Investment Management's analysis.
The short-term price movement of KARS, as reported, reflects immediate market reactions to the broader sentiment and analysis surrounding the EV market. Given the positive outlook on EV adoption and market share growth presented by Ark Investment Management, there's potential for increased investor interest in the EV sector, which could benefit KARS in the short term. The ETF's focus on electric vehicles and future mobility positions it to capitalize on the trends highlighted by Ark's analysis.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90