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Will Chinese EVs beat Tesla? How to profit from global 'megatrend' - Brendan Ahern

Kitco News

There is a “megatrend of global EV [electric vehicle] adoption” happening now, and China’s official policy is to prioritize the production and consumption of EVs as part of their plan to reduce their carbon footprint, said Brendan Ahern, CIO of KraneShares.

Ahern noted that Tesla’s competitive edge during this EV race will wane as established car brands as well as newer ones from China are turning their attention to this sector.

“Traditional auto makers, as well as upstart auto makers, are really going to give Tesla a run for their money. If you think about companies that have been making cars for over 100 years. When they pivot towards EV they’re going to have a tremendous competitive threat to Tesla. As well, Tesla makes luxury cars. In China, we see a lot of lower tier providers,” Ahern told David Lin, anchor for Kitco News.

KraneShares is a China-focused ETF provider with broad-index funds like the KraneShares Bosera MSCI China A ETF (KBA), and the EV focused KraneShares Electric Vehicles and Future Mobility Index ETF (KARS).

In particular, China’s focus on producing more affordable, mass-market electric vehicles may give Chinese auto producers an edge over foreign brands like Tesla, Ahern said.

For more information on China’s 14th 5-year plan, as well as an overview of China investment strategies, watch the video above. Follow David Lin on Twitter: @davidlin_TV (

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.