Electric vehicles (EVs) are currently regarded as an appealing (and eventually low-cost) approach to tackling climate change as the globe advances closer to a low-carbon — and possibly even a no-carbon — automotive future. The fundamental issue from the perspective of the environment, society, and governance is how EV producers would be able to ensure that the supply chains continue to be committed to achieving these goals. Putting aside that worry, environmental, social, and governance investors (otherwise known as ESG investors) worldwide are very interested in investing in EV producers, with interest that is not just persistent but also rising rapidly yearly.
According to a Bloomberg Intelligence report, global ESG assets may reach $41 trillion by 2022, accounting for one-third of the expected total global total assets (BI). Following their crossing the $35 trillion mark in 2020, this trend keeps the growth of ESG assets. According to the analysis, ESG assets might reach $50 trillion by 2025 on the assumption of 15% growth, which is a third slower than the rate of the previous five years.
Organic growth will continue to be driven by businesses, development initiatives, and central banks. However, the next phase of growth would be varied. Europe is expected to continue to be the primary engine for ESG debt issuance. There is plenty of potential for fresh debt issuance, as seen by the EU’s $1 trillion “Fit for 55” package, the Build Back Better Plans or U.S. infrastructure and the Inflation Reduction Act, and the spike in green bonds in emerging markets of six times over the past four years. Green bonds seem unstoppable in light of various forthcoming catalysts, including the EU Taxonomy.
Emerging as a new asset class, sustainability-linked loans and bonds have contributed to another surge of growth by opening the door to a wider range of companies and goals. They sold 80% of all green bonds and loans within four years. The accessibility of ESG debt instruments comes with new concerns, including the threat of greenwashing brought on by a lack of certifications and auditing.
Is it best to ask “how to buy Tesla in India?”
- Record high sales and market share
Remember that plugins have had a record-breaking month in June 2022, accounting for 16% of the total car market, while BEVs alone attained 12% of the market! If you are reading up on how to invest in Tesla from India, note that BEV sales have now internationally surpassed two digits for the first time.
The Tesla Model Y has reclaimed the top spot in the monthly top seller chart and has reached an all-time high. The closest an EV has ever been to recording a six-digit performance was with its nearly 98,000 deliveries. With almost 53,000 registrations, the Tesla Model 3 comes in second. This mediocre performance can be attributed to the COVID-derived lockdown that occurred in Giga Shanghai throughout the quarter.
- Financials improving
While you are figuring out how to buy Tesla in India, note that according to Tesla, its adjusted earnings per share increased by 57% to $2.27. Revenue increased 42% Y/Y to $16.734 billion, with regulatory credits accounting for $344 million of the total. Gross margins for the automotive industry Tesla were 27.9%, down from 32.9% in the prior quarter.
- Ability to tackle chip shortage
According to sources and experts, Tesla Inc.’s capacity to design parts in-house provided the automaker flexibility in making changes to parts and addressing supply chain problems that other manufacturers were impacted considerably harder by. Some Tesla customers were informed that they might accept delivery of their vehicles without certain components, including USB connections and Bluetooth chips.
In order to simplify the construction of the automobile, Tesla has deleted some components like lumbar support and radar sensors for the front passenger seats. Additionally, Tesla manufactures its seats, battery cells, and the electronics used in its driver assistance systems. Additionally, it has its own charging, service, and direct sales networks.
- Battery Range increasing
Battery density and vehicle efficiency are both steadily rising. A growing number of EVs, including the Tesla Model S and the BMW iX xDrive50, have a range of about 400 miles. There have been theories about what phase Tesla is at its 4680-type cells due to Tesla’s customary opacity about the real capacity of the battery packs. One rumour, however, is particularly intriguing: there could be Tesla Model Y vehicles driving around with a possible range of 500 miles.
What are the other major EV Stocks listed in the US?
Want to know how to invest in US auto stocks and US EV stocks? If you don’t want to bother going through each of them, you can directly invest in the Curated EV Stack of Stockal. Over the past ten years, electric car manufacturing has been one of the trendiest areas to invest in. Strong market activity and investment were sparked by a rush of competition from homegrown startups, foreign rivals, and established traditional automakers. As a result, many companies rose to huge and even mega-cap valuations.
According to a PwC analysis, amid rising interest rates, skyrocketing inflation, and persisting supply chain challenges, sales of electric vehicles increased by 81% during the first half of 2022 compared to the same period in the previous year. Despite many EV companies’ stocks declining from record highs due to the present macroeconomic situation, chances still exist for investors with positive growth.
The shares of big businesses may once again rise if EV adoption rises due to consumer demand and governmental requirements as capital costs decrease. The top US EV stocks to purchase in 2022 include Tesla, Rivian Automotive, Lucid Group, Nio, Xpeng, and Ford Motor.
How to invest in US EV Stocks from India?
The following are are the ways in which you can invest in US EV stocks from India:
- Basket Stacks
You can purchase pre-assembled stacks of stocks and ETFs with just one click. Hedge funds, seasoned wealth management firms, multinational asset management companies, and portfolio managers are the ones who construct them.
These instruments are often included in various pre-assembled portfolios focused on various topics or ideas, including capital goods, healthcare, internet technologies, ESG, and electric vehicles. Stockal’s Stacks is an effective method that allows you to maintain your funds in the proper assets and grow your wealth. Stockal offers investing stacking with an emphasis on US EV stocks.
- Direct investment in US EV stocks or US Auto Stocks
When investing directly, you can purchase stocks in all of the business areas indicated above. You can quickly and easily invest in the stocks of companies that make electric vehicles with Stockal. Stockal allows you to invest a fraction of a dollar, allowing you to select the investment size that best fits your spending plan:
- Formulate your risk appetite: It’s crucial to determine your risk tolerance before investing in any financial sector. High returns come with high risks.
- Select an investment medium: There are several mediums through which you can make an investment, such as brokerages and investment apps. One platform that makes investing in the US simple is Stockal, which is quick and compliant.
- Decide the quantum according to risk appetite and investment goals: It’s critical to comprehend your financial restrictions after choosing the medium and determining your risk tolerance. You may not necessarily have to spend significant money to trade in a specific US firm because Stockal allows you to buy shares in fractional amounts.
- Place the order: When you’ve made up your mind about everything above, make sure your paperwork is in order and that you’re in compliance, then, just place the order by clicking a button.
If you ask how to buy Tesla stocks in India, there may be limitations on how many stocks an individual can buy. It also necessitates a thorough knowledge and understanding of the Electric vehicle market and its players, in addition to the methodology. Sector-tracking ETFs, which you can find on Stockal, can also be used to invest in EV stocks. Due to its diversification, investing in ETFs carries a lesser risk. You are making investments in a variety of different companies. Therefore, it is improbable that they will all experience value loss.
4. Mutual Funds
Any investor can diversify their portfolio by putting money into mutual funds that incorporate US companies, especially in US markets. By providing diversification, mutual funds assist in stabilizing a hedge against currency devaluation and lowering the risk of an entire stock portfolio. Increase domestic stock market exposure to global economies.