The Best Automotive Stocks in 2021 – How to Invest

Automotive Stocks
Automotive Stocks

While the automotive industry in the UK may remain in a seemingly constant state of flux, the global markets appear to be far more robust.

This is great news for automotive investors, who have seen various car stocks soar in Q3 of 2021 and are able to target equities quickly online by trading indices via CFDs in the forex market.

But what are likely to be the most viable automotive stocks through Q4 2021, and what separates these equities from their rivals? Here are our top three picks:

#1. General Motors Co. – The Best Value Stock

General Motors Co. is one of the most reputable and recognised automobile manufacturers in the world, and one that manufactures SUVs, light trucks, sedans and a host of other vehicle types.

Its diverse interests also include the production and sale of automotive parts, with this broad range of products helping to sustain it even in the midst of challenging market conditions.

However, the company recently announced that it was idling production at two of its factories that produce pickup trucks, thanks largely to the global semiconductor shortage. This has imparted downward pressure on the company’s share price, which has depreciated from a 2021 peak of $63.92 on June 9th to $49.37 on September 20th.

This dip is only likely to be temporary, creating a scenario where General Motors Co. shares are priced lower and capable of offering increased value to investors globally.

#2. Ferrari NV – The Highest Growth Stock

In terms of high growth, the Ferrari NV stock also provides a potential option for investors, with this once again underpinned by a diverse business model and a wide range of relevant products and services.

In addition to producing and selling limited series cars (which add a unique dimension to the stock’s appeal and augments an existing range of sports cars), the company also offers financing to customers through Ferrari Financial Services in relation to specific products.

In early June, the firm announced the appointment of Benedetto Vigna to the role of chief executive, with this effective September 1st and providing a boost to the share price and extended period of growth through Q3.

The company’s share price was $166.40 on June 16th, for example, with this having increased to an impressive $192.10 by August 13th.

#3. NIO Inc. – The Biggest Momentum Stocks

This China-based firm is another seeing considerable momentum in the second half of 2021, with this company continuing to develop and manufacture smart and connected electric vehicles.

Make no mistake; there’s a growing and increasing demand for this type of car, with the UK alone now home to 600,000 plug-in vehicles and nearly 300,000 BEVs registered nationwide as of August, 2021.

This firm’s vehicles are equipped with autonomous driving technology and artificial intelligence (AI) features, while it also produces batteries, smartphones and photovoltaic products to create more diverse revenue streams.

Despite a recent share price dip, this equity boasts genuine momentum in the current market, especially if it can establish itself as a genuine market leader globally.

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