5 Top Automotive Stocks Gaining Traction In The Stock Market Now
As the world focuses on the Russian invasion of Ukraine, many investors continue to look for attractive deals in the stock market. For starters, automotive stocks could offer some intriguing opportunities. With autonomous driving becoming a key focus of many carmakers, the sector could be receiving a boost as U.S. regulators issued final rules eliminating the need for manual driving controls in fully autonomous vehicles. In the past, automakers faced significant challenges in deploying fully automated driving systems due to safety standards that assume that humans would have better control. So, automotive companies in the U.S. can now build and deploy self-driving vehicles without human controls such as steering wheels or brake pedals.
Elsewhere, it appears that consumers could own a Tesla (NASDAQ: TSLA) for as low as $25,000 in the future. Tesla’s CEO, Elon Musk believes that Panasonic may have created a battery that could unlock this possibility. Panasonic intends to develop a bigger “4680” battery to sell to the American electric vehicle (EV) makers. Well, the battery will have a larger volume and fewer cells while meeting the standards of EVs. With all said and done, it should not be surprising if these new automotive technologies would redefine the transportation industry one day. If you share the same sentiments, let’s take a look at some of the top automotive stocks in the stock market today.
Automotive Stocks To Watch Right Now
- Ford Motor Company (NYSE: F)
- General Motors Company (NYSE: GM)
- Toyota Motor Corp (NYSE: TM)
- Li Auto Inc (NASDAQ: LI)
- Xpeng Inc (NYSE: XPEV)
To kickstart the list, we have the legacy automobile company, Ford. Put simply, it designs, manufactures, markets, and services a full line of Ford trucks, utility vehicles, and cars. The company also operates a Mobility segment that primarily includes the development of autonomous vehicles and related businesses. It holds ownership in Argo AI, a developer of autonomous driving systems, and Spin, a micro-mobility service provider. Despite a rocky start to the year, F stock has still risen more than 25% within the past year.
Yesterday, Ford and PG&E Corp announced a partnership to bring ‘bidirectional’ charging vehicles to its customers. What this means is, the electric charge can travel both ways, allowing the EV to charge a consumer’s home or tools. The pilot program will test how the Ford F-150 Lightning can interact with the grid to support electric reliability by providing backup power for homes. The company also claims that it could possibly provide power to the home for up to five days. Ford added that it will likely make most of its electric vehicles bidirectional moving forward. With that in mind, would you bank on the future of F stock?
Similar to Ford, General Motors is an automotive company that has been around for more than a century and still thriving. The company specializes in trucks, crossovers, cars, and automobile parts worldwide. Besides that, it also provides financing services through General Motors Financial Company Inc. With more than 155,000 diverse employees around the world, the company envisions a world with zero crashes, emissions, and congestion.
Earlier this week, General Motors and POSCO Chemical announced that they are working with the governments of Canada and Quebec to build a new facility in Bécancour, Quebec. Estimated to be around $400 million, the facility will produce cathode active material for General Motors’ Ultium batteries. As a result, these batteries will power electric vehicles such as the Chevrolet Silverado EV, GMC HUMMER EV, and Cadillac LYRIQ. Despite the mixed sentiments around GM stock in recent months, could this new development propel the stock to greater heights?
Another top automotive company would be Japanese automaker Toyota. Its Automobile segment designs, manufactures, and sells a range of automotive vehicles that include sedans, minivans, sports utility vehicles, and trucks. Lately, Toyota has been ramping up its electrification efforts. In February, there was an additional $90 million investment for two of its U.S. manufacturing facilities, in West Virginia and Tennessee. This is to further expand the production of electrified vehicles.
Furthermore, Toyota announced that it will provide bZ4X customers with a DC fast charger access through EVgo (NASDAQ: EVGO). So, EVgo’s high-powered chargers will provide its drivers both flexibility and convenience to quickly charge at prime locations. On top of that, customers who purchase or lease the vehicle will get a year of unlimited complimentary charging at all EVgo-owned charging stations nationwide. All in all, should you be paying attention to TM stock right now?
Li Auto is a China-based new energy passenger vehicles (NEV) automaker. Essentially, the company engages in the design, development, manufacture, and sales of smart electric vehicles. Its primary products are sport utility vehicles (SUVs) under its brand Li ONE. Additionally, it also sells peripheral products and provides related services, such as charging stalls, vehicle Internet connection services, and extended lifetime warranties.
As per usual, Li Auto started the month by announcing its latest delivery updates. Impressively, it delivered 8,414 Li ONEs in February 2022, representing an increase of 265.8% year-over-year. This makes the cumulative deliveries of Li ONEs to be 144,770 since its market debut. That said, investors can expect a better month-to-month improvement in its deliveries for March as the February figures are lower due to the Lunar New Year holidays. With that in mind, do you believe LI stock could regain its momentum soon?
Much like Li Auto, Xpeng is a rising star in the EV industry in China. For the uninitiated, its primary products are environmentally-friendly vehicles. The company’s primary targets are the mid-to-high-end segment of China’s passenger vehicle market. As of now, the company has 3 EVs in the market, namely the G3 SUV, P7 sedan, and the latest P5 sedan. Investors should also note that Xpeng carried out a technological upgrade at its Zhaoqing plant during the Lunar New Year Holiday in February. Thus, making use of the downtime during the festive period.
Xpeng is also not resting on its laurels. Recently it announced that it has started taking pre-orders for its P5 electric sedan in four European countries. For now, the countries are Denmark, the Netherlands, Norway, and Sweden. The European version will be equipped with Xpilot 2.5, the company’s advanced driver-assistance system. This software system will have autonomous features to a certain extent but still require a driver. All things considered, would you say that XPEV stock is a top automotive stock to watch?