Tesla, BYD and Co benefit from EU plans

Tesla, BYD and Co benefit from EU plans


If the European Commission has its own way, only cars that do not emit CO2 will be allowed to register in Europe from 2035. This leaves the electric car as the only option. Among other things, the E-Mobility Battery Index could benefit from the EU initiative.

After the European Parliamentary Environment Committee approves the draft law of the Commission on Wednesday, all MPs will finally vote on it in June. If the law is implemented, the current limit for new cars for a car manufacturer will be reduced from an average of 95 grams of CO2 per kilometer by 55 per cent by 2030 and by 100 per cent by 2035.

However, there are important voices from several directions. The European Association of Automotive Distributors CLEPA warns of half a million job losses in the EU, especially in Eastern Europe. The CDU also wants to soften the proposal and not completely ban combustion engines. This will facilitate exchange for the company and employees. CDU MP Jens Gieske also wants to maintain transparency in new technologies.

The proposed alternative to promoting electronic energy as an alternative to electronic engines was also unsuccessful. Oil is derived from hydrogen and CO2 with high energy consumption and can be used by combustion engines.

Beneficiaries at the end of combustion

So everything looks like the end of combustion engines by 2035, which will speed up the transition to electricity. Automotive manufacturers, who are already in a good position when it comes to electronic vehicles, should benefit from this, but also other companies in the supply chain such as battery distributors or manufacturers of essential raw materials such as lithium.

Representatives of the relevant sectors are represented in the E-Mobility Battery Index. Tesla and BYD are the only two manufacturers of electric vehicles, Samsung SDI, Varta and LG Chem are represented as battery manufacturers. Also in the index are lithium companies like Livent, SQM and Albemarle, which can also benefit from the high demand for their products.

E-mobility battery index
(WKN: SLA8F9)

The direction of electronic mobility has not changed and could be further accelerated by EU impulses. Companies represented in the index should benefit from this in the long run. With a glossary certificate – WKN DA0AAU – investors can benefit 1: 1 from the glossary design as well as spread the risk in eight companies from the industry.

More information can be found here.

The price of financial instruments depends on the index as a basis. Börsenmedien AG developed this index and reserves the right to it. With the guarantor shown Alphabeta Access Products Ltd. by Morgan Stanley & Co. International plc, Börsenmedien AG has concluded a memorandum of understanding in which it gives the issuer a license to use the index. In this case, Börsenmedien AG receives payment from Morgan Stanley & Co. International plc.



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