Consumers looking to purchase an electric vehicle might feel compelled to do so thanks to holiday deals offered by manufacturers. This could help prop up Q4 sales for EVs, giving traders short-term opportunities in leveraged ETFs.
“With the holiday season creeping up, shoppers are preparing for some of the biggest car deals of the [year. And] it seems the best discounts will be found primarily among EVs,” a Pinnacle Gazette article noted. The article said this holiday season “might be one of the last opportunities to snag substantial deals on electric vehicles.”
Data from Edmunds revealed automotive manufacturers are offering deep discounts to deplete a surplus of inventory. Demand for EVs is slowly starting to catch to supply. But the gap is still a large one to overcome; hence, the incentives and discounts to spur sales.
“For example, on average, buyers can expect discounts exceeding $3,560 on [EVs. That’s] more than double the average discount of $1,885 on traditional gas-powered vehicles,” the article said.
One headwind cited by the article is the still relatively high price of EVs compared to their petrol-powered counterparts. Average prices are still just under $60,000 (compared to $35,000 for gas cars according to Edmunds ). But the option of leasing can still allow consumers to get behind the wheel of an EV.
Trading Options in the EV Industry
Traders who want to take advantage of short-term price gains in the EV industry can add the Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares (EVAV ) to their trading tools. The fund seeks to achieve 200% of the daily performance of the Indxx US Electric and Autonomous Vehicles Index. It’s an ideal option for broad-based exposure to the EV market, with double leverage to maximize gains as opposed to simply concentrating on one stock.
Conversely, traders who want concentrated exposure to one stock in the EV industry can always look to one of the biggest players: Tesla. The automaker is one of the top holdings in EVAV, but traders may want to target the stock specifically. In the case of maximizing profits, single-stock ETFs like the Direxion Daily TSLA Bull 2X Shares (TSLL ) can assist. Furthermore, TSLL has an inverse pairing with the Direxion Daily TSLA Bear 1X Shares (TSLS ), which allows traders to also profit from price dips and downturns for added market flexibility.
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