Do You Have These 2 New Top Automotive Stocks On Your Radar In 2020?
Automotive stocks are directly affected by people having an interest in a company as well as its sales. For new automotive companies, having a high volume of sales might not have happened yet. With that, technological advances in the automotive industry can create momentum in the market causing automotive stocks to rise in the share price.
So currently, what are the more popular trends in the current car industry? In recent times electric vehicles and autonomous technology have been the top advancements in the automotive industry. We’ve seen the boom of electric cars into the mainstream in recent years with companies like Tesla Inc. (TSLA Stock Report) exploding in sales and appeal. Now, many automakers have jumped on board and want to ride the electric car wave. With this impact, big automotive company Audi for example announced it wants its lineup of cars to be all-electric by 2025.
Automotive stocks have all been affected by the coronavirus pandemic, but what about those new to the market? Going public can be one of the greatest decisions a company can make if it is in the correct position to do so. A lot of benefits come with going public, such as driving stock prices up. Let’s take a look at two automotive stocks that have recently gone public. So far, both of these automotive stocks seem to be performing well in the market.
#1 Automotive Stock To Watch: Nikola Corporation
This automotive stock to watch, Nikola Corporation (NKLA Stock Report), was founded in 2014 and was named after the famous inventor Nikola Tesla. On June 4th, 2020, the electric vehicle maker went public. We’ve seen the electric car industry prove itself to be the future of the automobile. This must mean electric trucks will become a thing right? We aren’t quite there yet but things are getting pretty close. Let’s take a look at what’s happened since.
When NKLA stock was listed on the NASDAQ, NKLA stock price was initially around $35 a share. That was until the company announced its electric and hydrogen-powered pickup truck with a range of around 600 miles. This announcement came out on June 8th and created some good momentum for the company. After the release, NKLA shares climbed to a height of $73 a share. That’s right, it went over double its prior price. The company yet to ship any trucks out. Investors believe that once these trucks have hit the market, the demand for these trucks will be very high.
The CEO and Founder of Nikola, Trevor Milton, said, “I always thought that the company was going to do really well. I thought there was a lot of value in Nikola that people didn’t understand.”
The company will begin accepting reservations from customers for the Badger pickup truck on June 29th. Trevor Milton added, “My goal is to take the throne from the Ford F-150. June 29th is going to be a big day around the reservations coming in.” It will be interesting to see how NKLA stock price is affected by the launch date of its new truck.
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#2 Automotive Stocks To Watch: Vroom Inc.
Another automotive stock that recently IPO is Vroom Inc. (VRM Stock Report). On June 9th, Vroom went public and shares of VRM stock started at $23. Quickly though, VRM stock rose to $45.55 a share creating an 83% gain on its opening day.
Beyond being an automotive stock, Vroom is a company that focuses on online automobile sales. On the home page of its website it says “Buy a car entirely online and have it safely delivered, contact-free.” This can be especially useful during the coronavirus pandemic. Many people aren’t going out to buy cars when there is a stay at home order in place. As businesses are getting closer to reopening, this service can prove to be very useful and might even be the future of automotive purchases.
It’s only the first trading day of this automotive stock and so far things look promising. These first-day gains have already made this an automotive stock to watch in 2020. The automotive industry continues to change and evolve all the time and these two companies seem to be making great advancements in the automotive field.