The pandemic has genuinely shaken the core of the world. The most significant changes happened within the stock market. The economy took a massive hit. Since the stock market suffered, it led to popular stocks decreasing in value. The automotive industry also noticed a dramatic dip in some traditional share price. However, in contrast, the EV automotive niche has some stock riding high. With share prices lower than usual due to the effect of the pandemic across the country, it would be ideal to do a bit of research. Research doesn’t mean to invest your life savings and isn’t another word for prediction. Research means dedicating some time to investigate or study some traditional automotive stock trends. Don’t hesitate to reach out to a stock professional or financial advisor for further information or advice. Below is a list of popular automotive stock to make a note of:
- Honda Motor
Honda stock dropped to under $20 in March but has now been roaming around $25 to $26. Honda hasn’t offered any perspective on their financial prospects, but some analysts predict them recovering in 2021. In recent news, Business Insider notes that Honda had increased in used car sales for their Honda HRV. Honda recently invested about 1% in China’s CATL (Contemporary Amperex Technology) to develop EV Batteries.
- Ford Motor
Ford stock seems to be sitting consistently around the $6 mark. This is down from $8 to $9 at the beginning of the year before the stock market crash. It is worth noting that Ford does bear a fair amount of debt, on-going lawsuits, and decreased push in the passenger vehicle market. In more optimistic news, Ford is launching the new Bronco and recently reveals an electric Mustang with a horse-power of 1400.
- General Motors
The buy-in for GM is still low at around $25 to $26, 40% less than before the stock market crash. It may be a while before the GM stock recovers from the blow from the pandemic, but they project any negative impact to be short-lived. Mary Barra, CEO of GM, says she expects financial recovery by early 2021. Cadillac has been a consistently reliable and successful brand for GM and may continue to see those successes next year. GM has also announced details on the release of 12 new electric vehicles in the upcoming future.
- Nio (NIO)
The shares for Nio stock have skyrocketed from around $4 to $13. At the time of writing, the stock hovers around approximately $12-$13. Nio recently received an investment from the Chinese government and looked to be thriving. However, with the volatility of the stock market and the many unknowns surrounding these international financial reports - if you find yourself interested in this stock, have your financial advisor dedicate time in research with this one.
- Tesla (TSLA)
At the time of writing, Tesla stock flowed upward again at $1,500 per share. Some investors seem to be cautious about Tesla stock, wondering if they could be in a bubble and if vehicle execution problems could cause it to pop eventually. While other investors are more optimistic, some believe that Tesla’s stock price could reach $4,000 per share as the company expands, and their EV market grows.
If you have financial means, the stock market may be an area worth exploring. For the automotive lover, you can invest in an industry that ignites your passion. Seek out your financial advisor for their expertise on which traditional automotive stock would be best for you. They have the experience to analyze your specific financial situation and goals to recommend something worth considering.