DRIV: EVs Hit A Tariff Speed Bump In 2025 But Still Speeding Along

2025-04-04 09:41:25 ET

Summary

• The Global X Autonomous & Electric Vehicles ETF offers exposure to the growing EV and autonomous vehicle markets, despite recent tariff-induced declines.
• The DRIV ETF's top holdings include major tech companies like Nvidia, Intel, Microsoft, and EV manufacturers like Tesla and XPeng.
• Tariffs have negatively impacted the market, but the long-term growth potential in global EV adoption remains strong.
• I rate DRIV a Hold due to current tariff pressures, but view it as a buying opportunity for long-term investors.

As the market reacts to the tariffs announced on April 2, sending just about every growth and technology stock into a tailspin, there is little reason to be optimistic about a quick recovery. Automakers are especially concerned with the impacts of tariffs on their bottom lines. For example, Stellantis ( STLA ) went into damage control mode , announcing a halt to production of its vehicles in Canada and Mexico. And Tesla ( TSLA ) announced a disastrous sales report with the worst quarterly delivery numbers since 2022 even before the impact of tariffs takes hold. Ford ( F ) also reported a drop in first quarter sales, even though the demand for EVs rose more than 25% over the same period last year....

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