automotive stocks to buy

Are These Automotive Stocks On Your Watchlist In June?

Automotive stocks have been very interesting to watch lately. The automotive industry like many others has been impacted by the coronavirus pandemic. Many automakers were forced to halt production on its vehicles. A decline in car sales has been the result of this as well. Fewer people are buying cars due to the stay at home orders. Many dealerships were also required to close as they are not essential businesses, further hurting the industry.

That does not mean that automotive stocks can’t do well right now. Tesla is a great example of an automotive stock that can strive during these times. That company is currently reaching new highs. Partnerships and developments within the automotive sector can cause company financials and stock price to increase exponentially.

Things are getting closer to reopening and car sales are already starting to increase once again. So automotive companies that announce advancements in its financials and technology have seemed to rise. Let’s take a look at some automotive stocks that have been on the rise recently.

Read More

Best Automotive Stocks To Watch This Month #1 Volkswagen AG

Volkswagen AG (VWAGY Stock Report) saw its stock price go from $18.50 a share to a low of $10.68 when the pandemic hit. Volkswagen Audi Group manufactures many different brands of cars under its umbrella. This theme of stocks dropping is one that many stocks followed when this virus took over. But now, Volkswagen is rebounding once again.

On May 29th it was announced that Volkswagen plans on investing $2.34 billion in two electric vehicle companies in China. It is investing 1 billion euros into JAC Motors, and 1.1 billion euros for 26.5% of Gotion High-Tech Co. Ltd. This company manufactures batteries for electric vehicles. JAC Motors also builds vehicles for NIO, a Chinese electric vehicle company. So this news has also impacted NIO stock which we will dive into in a bit.

automotive stocks to buy (VWAGY stock)

Volkswagen also invested 2.6 billion into Argo AI, a company that develops self-driving car technology. This was a collaborative effort with Ford (F Stock Report). This is one of the largest collaborations in the automotive industry when it comes to self-driving car technology. So naturally, all of this good news has caused shares of VWAGY stock to rise. We stated the low was $10.68 post-pandemic and now on June 5th it is sitting at $17.54. Do you think that these Volkswagen developments will keep driving its stock price higher?

[Read More] 3 Top Canadian Gold Stocks To Buy In 2020

Best Automotive Stocks To Watch This Month #2 NIO Inc.

NIO Inc. (NIO Stock Report) is a Chinese electric vehicle manufacturer. The company’s stock price has been steadily increasing over time, due to new advancements being made within the company.

Recently Nio reported vehicle sales up 215.5% year over year. 3,436 vehicles were sold in just the month of May. The founder, CEO, and chairman of Nio, William Li, said in a statement, “In May, we achieved record-high monthly deliveries in our history”. In addition to this, Volkswagen’s purchase of JAC Motors has impacted NIO stock as well. JAC Motors builds vehicles for Nio, so Volkswagen’s deal with JAC can mean potential assistance from the automotive giant that is VW.

top automotive stocks to watch (NIO stock)

NIO stock just 5 days ago was at $3.78 a share. After this news and financial statistics were released, NIO stock hit an intraday high on June 5th of $6.08. Nio is currently on track to reach its second-quarter delivery goals as well, according to the Chief Financial Officer Steven Fend. The stock also got a bump from a Goldman Sachs analyst upgrading the stock to “buy”.

The Goldman Sachs analyst said that these financials show the company “has highlighted Chinese consumers’ growing recognition of this emerging auto brand”. Will you add NIO to your list of automotive stocks to watch?

When it comes to automotive stocks new technologies and partnerships are what can sometimes drive the market. Sometimes, speculation alone can bring up an automotive stock’s price.

For example, there’s no guarantee that Volkswagen will perform well within the electric car market, but its stock price has still gone higher just based on partnerships with electric vehicle companies itself. For now, these automotive stocks have been on the rise and have not shown any signs of slowing down yet.


Sign up for our FREE Newsletter and get:

  • Stock Alerts And Ideas
  • Learn to Trade Stocks & Options
  • Free Access to The Fastest Growing Highest Rated Trading Chatroom
Privacy Policy

Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 | news@stockmarket.com

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
You May Also Like