The automotive industry has always been in the public eye due to its huge size and outward appearance. Almost everyone knows the main automotive brands, and most people have an opinion about the best new car items on the market. For example, when it comes to buying a car, we know in advance which brands we will consider as a potential vehicle, and which we won't trust.
Because of that outward appearance, automotive stocks have gotten lots of interest from investors and traders for decades and likely will for decades more. Also, with the sharp rise of electric cars and interest in them, the automotive sphere is rapidly changing in its economic climate (it was particularly noticeable in 2021). Using the latest news from this industry and alternative data signals we collect, let's take a closer look at the best automotive stocks based on their performance:
1. Ford Motor Company ($F) - the company designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles worldwide.
Ford Motor stock has rocketed 128% so far this year, it has seen strong demand for its electric vehicles. Ford announced that it plans to make 300,000 Mustang Mach-E crossovers in 2023 for the North America and European markets, up from above 50,000 electric crossovers in 2021. The company also reported a strong third quarter and restarted its dividend as well:
Also, Ford's executive chair, William Clay Ford, Jr., just disclosed a large purchase of shares of the auto giant, just look how the insider's buying activity graph rocketed at the beginning of December:
$F has a positive sentimental score among retail traders as well:
2. Tesla Inc. ($TSLA) - the pioneering maker of “premium electric vehicles” has grown to become the world’s largest automaker by market cap, with strong U.S. sales and a growing international presence. Investors clearly expect great things from CEO Elon Musk and his team.
Tesla shares dipped below $1,000 each on Monday, December 13, to their lowest level since October (on the same day CEO Elon Musk was named "Times Person of the Year"):
Is it a good time to add some $TSLA shares to your investment portfolio? Analysts say that Tesla, Inc. will probably continue topping growth and margins consensus expectations in 2022, having a significant advantage in a rapidly accelerating global EV market due to better access to chips and batteries through vertical integration. Most retail traders are optimistic about this stock as well:
3. General Motors Company ($GM) - is an American multinational automaker that is committed to zero emissions, and is using its Ultium Platform to transform the automobile industry, bringing about an all-electric future. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling brand names.
General Motors is spending $35 billion to develop electric and autonomous vehicles through 2025. It aims to launch 30 new EVs around the world by then. Those vehicles will include a Hummer electric truck and a BrightDrop delivery van, both set to arrive by year-end. The luxury Cadillac Lyriq electric SUV is due by mid-2022, with a Hummer electric SUV and GMC Silverado EV pickup due by early 2023.
$GM posted more than 1000 open job positions in November-December, which means that they really need qualified specialists to perform even better in 2022:
Also, the retail traders' appetite has increased for the past 2 months. This is mostly due to the new innovative EV stories and conversion of its massive customer base to electric vehicles in the coming years:
4. Fisker Inc. ($FSR) - the company focuses on the design, development, manufacture, and sale of electric vehicles.
The EV world is witnessing the development of an incredible success story in Fisker. Based on its tremendous growth rates and attractive valuation, FSR stock presents one of the best long-term EV plays at this time. The up-and-coming startup is developing the most sustainable EV in the market, potentially revolutionizing the industry. Moreover, it already has more than 18,600 reservations, up roughly 43% from the fourth quarter in 2020. Just look how rapidly the website traffic has grown in November:
The $FSR was up 30% in November after they showed Fisker Ocean - a completed version of EV. However, it is still a year from production in November 2022, so investors think this stock can climb up even higher in the coming year.
5. Lucid Group, Inc. ($LCID) - a technology and automotive company, develops electric vehicle (EV) technologies.
On November 15th, MotorTrend announced that the Lucid Air has won the 2022 MotorTrend Car of the Year, the first instance in which the initial product from a new automotive brand has been awarded the "Golden Calipers". $LCID released their Lucid Air vehicle only at the end of October - an EV with a revolutionary approach to automotive layout and engineering packaging that capitalizes on the miniaturization of Lucid's in-house developed EV powertrain and battery pack. The result is a large and luxurious interior cabin within a beautiful, streamlined exterior design along with a relatively compact footprint.
All the alternative data metrics and social awareness about the stock have been constantly growing over the past 2 months, here's the website traffic growth for example:
Also, on December 13th, the company has been added to the Nasdaq-100 Index, effective prior to market open on Monday, December 20, 2021. The Nasdaq-100 Index is one of the world's preeminent large-cap growth indexes and is designed to measure the performance of 100 of the largest Nasdaq-listed non-financial companies, based on market capitalization. The stock was more than 5% up after this news:
What are your thoughts about these car stocks? Are there any that you have in your portfolio?
You can easily check other alternative data points for today's stocks (and any other US public companies) just by clicking on their tickers :)