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Best Automotive Stocks To Watch This Month; 2 Names To Know

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.

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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.

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?

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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.

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.

By Josh Dylan

Josh Dylan is an active contributor to StockMarket.com. His forte is in geosocial events and emerging trends in the stock market today. As an active contributor to other financial outlets like MarijuanaStocks.com, his ability to study current events and determine the potential market reaction is what sets him apart from other writers.

After studying at UC Santa Cruz and earning a bachelor's of art and art history, Josh also went on to start his own business in art resale. Identifying underserved niches like this has allowed him to think outside the box when it comes to applying this approach to the stock market.

His new-age take on social media and branding gave Josh the foresight to apply certain lifestyle trends to market moving topics. This has included the recent trend in the cannabis industry and marijuana stocks as well as following emerging technology such as artificial learning and web-bots. Fundamentals are just as important as momentum in Josh’s opinion. Being able to understand how to apply popular trends to investing is of major importance. If the price of oil is sinking but the price of gold is following along, we want to understand why, not just follow the broader trend.

Josh Dylan makes it a point to not only mention what hot “today” but also find ways to apply that to find future opportunity in the stock market. What’s more is that Josh has become an active part in the StockMarket.com social media team. He works to delivery top research not only one StockMarket.com but also bring it to the readers, directly.

By studying the macro-economic events in the market, Josh makes sure to find events that could shift micro-economic trends. He prides himself on taking a unique approach to information but not taking things for “face value”. When it comes to the stock market, things can change at a moment’s notice and Josh makes sure to stay ahead of that with sound research and diligence. When Josh isn’t writing about the stock market, he enjoys spending time with his family and surfing. He currently calls Southern California his home.

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