The first half of 2023 is behind us, and we are about to enter the earnings season.

The markets have already started digesting preliminary sales numbers and assessing economic conditions worldwide.

And carmakers have started reporting their operating results.

General Motors reported a 19% gain in sales for the second quarter. The company sold almost 692,000 vehicles, including 15,652 EVs.

EV sales more than doubled compared to the same quarter last year, yet they were lower than in the previous quarter. The share of EVs in the company’s total sales is still small, however, which means there is a lot of room for expansion.

The company aims to produce 50,000 EVs in the second half of the year, which will provide the necessary growth for the company’s EV segment.

Other carmakers, such as Nissan, Kia, Hyundai, and Audi, also reported strong sales in the US, including EV sales.

Cox Automotive, a research company, estimated that EV sales in the US would surpass one million units for the first time this year. If it happens, the share of EV sales will grow to around 7% of the total.

Worldwide, Tesla reached record sales in the past quarter. The company delivered 479,700 vehicles boosting its sales by 86% over the same quarter last year. A major achievement for the company and is not a limit given the relatively low EV penetration across the globe.

Tesla booked most of its sales in China, having sold 247,217 EVs in that country.

The sales were supported by the tax credits introduced in China recently. In total, the country allocated 520 billion yuan ($71.7 billion) for the purchase tax breaks throughout 2027. This should further accelerate EV sales growth there.

Industry insiders estimate that EVs will constitute 40% of all new car sales in China by 2030.

Some countries aim even higher.

In Norway, EVs represent 90% of total car sales already. And while the absolute number of cars sold is much lower than in other countries, it’s still impressive. The country may soon switch entirely to EVs.

This is an early snapshot of the EV megatrend in the second quarter, showing that its growth is accelerating. Just as we expected.

In its recent report, Bloomberg estimated that the global EV fleet can reach 730 million by 2040—a massive gain from around 27 million at the end of 2022.

In other words, this megatrend is still in its early stages, and there’s still time to profit from it.

This supports our view on the EV sector and other major megatrends we’re focused on: clean energy transition, automation, AI, and others. These high-tech trends are unfolding simultaneously.

We believe these sectors have excellent return potential. Investors should consider adding exposure to the EV industry while critically assessing their “old energy” holdings such as oil and gas producers.

Thank you for your loyal readership,

The Financial Star team