Despite the current global semiconductor chip shortage, some EV manufacturers witnessed record sales in the third quarter. Increasing investments to ramp up semiconductor production should further drive the EV industry’s growth. Investor optimism about this space is evidenced by the Global X Autonomous & Electric Vehicles ETF’s (DRIV) 16.6% gains, compared to the SPDR S&P 500 Trust ETF’s (SPY) 8.2% returns over the past month. The global EV market is expected to grow at a 15.4% CAGR to $187.94 billion by 2026.
Given this backdrop, Wall Street analysts are optimistic about the upside potential of shares of EV manufacturers NIO Inc. (NIO), Li Auto Inc. (LI), Electric Last Mile Solutions, Inc. (ELMS), and Electrameccanica Vehicles Corp. (NASDAQ:SOLO).