DRIV - BetaShares Electric Vehicles and Future Mobility ETF

Dona Ferentes said:

DRIV, the BetaShares Electric Vehicles and Future Mobility ETF listed on the ASX mid Dec, 2021. Currently only $6 million of assets, and trading around $11.90

Mgmt Costs** (% p.a.)

0.67%

DRIV aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of global companies at the forefront of innovation in automotive technology. Top 10 holdigs:

Name	Weight (%)
TESLA INC	10.8
UBER TECHNOLOGIES INC	6.9
APTIV PLC	6.5
NIO INC	6.0
VOLKSWAGEN AG	5.4
VOLVO AB	4.9
PACCAR INC	4.4
XPENG INC	3.7
BYD CO LTD	3.6
LI AUTO INC	3.6

Click to expand...

Unfortunately, competition has proved relentless. In the United States alone, Uber is still locked in a fight with Lyft for rides and DoorDash for food deliveries, among others. It cannot risk removing subsidies completely. In April, the company announced that it would need to spend another $250 million (€215 million) on incentives to ward off a driver shortage.

Prices are a delicate calculation. Too high and passengers will cancel. Too low and drivers will find other work. Plus Uber has to strike the right balance with the share of fees it takes.

There is a further problem. If drivers obtain the employee status that many are fighting for – and which some countries and states are demanding – future profits could evaporate.

Click to expand...