The electric vehicle (EV) industry is experiencing accelerated growth, driven by solid demand amid surging crude oil and gas prices and increased environmental concerns worldwide. Furthermore, supportive government funding and policies are contributing significantly to the growth of the EV industry. President Biden's Bipartisan Infrastructure Law, passed last fall, includes $5 billion for states to build a national charging network.
Despite the EV industry’s long-term growth prospects, it has been facing challenges over the past two years, including deepening supply chain issues aggravated by geopolitical crises and surging raw material prices amid 40-year high inflation. The ongoing automotive semiconductor chip shortage is causing production cuts worldwide further curbing the growth of the EV industry. R.J. Scaringe, CEO of Rivian, warned of a future battery shortage. The bearish sentiment surrounding the electric vehicle industry is evident in the Global X Autonomous & Electric Vehicles ETF's (DRIV) 24.3% decline year-to-date.
