When it comes to EV investing, Tesla usually comes to mind. But there are many more opportunities across the EV ecosystem such as batteries and semiconductors. KraneShares’ Anthony Sassine joins us on our Compounded podcast to discuss the outlook for EV stocks and what he’s bullish about right now.
The EV opportunity
“If I have to boil down the EV opportunity in one sentence – we’re trying to replace 1.2 billion ICE (internal combustion engine) cars with electric vehicles…but today we’re still at 20 million. So, think about the opportunity for the next 20 to 30 years.”
Most promising Chinese EV
“[Nio, Li Auto, Xpeng] they’re all promising in many ways…
I’m very excited about BYD. I like BYD as a business because it’s vertically integrated. They have the biggest plug-in hybrid EV…an electric bus and electric train business… a battery business… [and] also an electronics business [in semiconductors].
So they have the whole shebang, if you want.”
Ways to invest across the EV ecosystem
“There’s a whole group of companies across different industries making the [electric] car happen…
You have the EV components… the battery makers like CATL…the raw materials, the mining company, the EV charging and infrastructure builder… and then autonomous connectivity as we push towards autonomous driving.”
“It’s very important to have all these [exposures] at the same time, because in a year like  where vehicles are down in aggregate, raw materials are actually up, and the charging companies and hydrogen are actually up…
Last year, vehicles were up, battery makers were up, but charging companies and hydrogen were down.
So, on a yearly basis, you have environments that would favour one industry over another.
But if you’re invested in the long term and you have all these different components in your fund, you’re kind of protected in a way but still getting exposure to the EV [ecosystem].”
Episode guest: Anthony Sassine, Senior Investment Strategist, KraneShares
Host: Yasminne Cheng
Producer: Eliezer Toh
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