2024 was a record year for electric vehicles sales. EV sales reached 20% for the first time, according to a CNBC report. That bodes well for exchange-traded funds centered around EVs.
“Auto data firm Motor Intelligence reports more than 3.2 million ‘electrified’ vehicles were sold last [year. That’s] 1.9 million hybrid vehicles, including plug-in models, and 1.3 million all-electric models,” reported CNBC.
Data is promising for electric vehicle manufacturers though consumers are still heavily skewed toward petrol-powered vehicles. That’s reflected in the current market share, where it comprises almost 80% of sales. EVs, however, are starting to chip away at that lead. Motor Intelligence data also showed sales of their gas-powered counterparts are now just a shade under 80%, at 79.8%.
Nonetheless, as CNBC duly noted, the pace of increased sales for EVs was slower than anticipated. The industry is still facing a glut of EVs. It needs to get them out of showroom floors and lots dealerships and onto public roads.
There’s also the wild card of what new U.S. President Trump will do with public policy that affects EV sales. Tesla founder and CEO Elon Musk is part of Trump’s Department of Government Efficiency (DOGE). That could net positive results for the EV industry.
3 Electric Options
The EV industry is poised for growth in the long-term horizon. But there are also opportunities to take advantage of in the short term. Those looking to take advantage of short-term price gains 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. It provides double leverage to maximize gains as opposed to simply concentrating on one stock.
In addition, traders who want concentrated exposure to one stock in the EV industry can always look to one of the biggest players: the aforementioned Tesla. Motor Intelligence data showed that Tesla once again dominated EV sales in 2024. It’s 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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