Should Investors Have These Top Automotive Stocks On Their Watchlist For Monday?
With all the hype around reopening plays now, automotive stocks are in a unique position. Why? Well, for starters, conventional automotive players stand to benefit from broader economic recovery as consumers begin moving around more. At the same time, the booming electric vehicle (EV) and autonomous vehicle (AV) industries continue to flourish as well. This would be the case with the growing adoption of related tech for environmental and safety factors respectively. With all these potential tailwinds in play, I could see investors keen to jump on the top automotive stocks now.
In fact, even tech giants such as Baidu (NASDAQ: BIDU) have made an entry into the EV and AV markets. Firstly, the company is currently setting up its EV joint-venture company with automaker Geely. Second, Baidu has also been rolling out its AV-powered Mobility-as-a-Service business in China, the first-of-its-kind in the world. Despite the recent tech and regulatory-related selloffs, BIDU stock is still up by over 120% in the past year. Elsewhere, pick-and-shovel EV plays such as charging station manufacturer ChargePoint (NYSE: CHPT), have also been in the spotlight. This is thanks to President Joe Biden’s recent infrastructure bill being focusing on EV adoption. In light of all this, here are four of the best automotive stocks to watch on Monday.
Best Automotive Stocks To Watch In April
- Nuvve Holding Corporation (NASDAQ: NVVE)
- QuantumScape Corporation (NYSE: QS)
- General Motors Company (NYSE: GM)
- Ford Motor Company (NYSE: F)
Nuvve Holding Corporation
Starting us off is Nuvve. For some context, Nuvve is an upcoming player in the field of EVs. The company develops and markets vehicle-to-grid (V2G) technology which would allow EV owners to reduce the overall cost of their EVs. Via a V2G model, said owners can sell back surplus power from their vehicles to help supply the energy grid. In theory, this would help offset some of the costs of EV ownership and in turn bolster EV adoption overall. Given the overall tailwinds for EV infrastructure companies, I could see investors eyeing NVVE stock now. Evidently, the company’s shares soared by 27% during intraday trading yesterday.
Nuvve has also been hard at work on the operational front. Just last week, news broke of its latest collaboration with leading school bus company, Blue Bird Corporation. Particularly, the duo unveiled North America’s first commercial application of V2G tech in school buses. The direct-current fast charge vehicles not only provide additional income for the school district but also boasts zero-emission features.
Through Nuvve’s V2G platform, the school bus batteries can collect and store renewable energy to be sold to the grid. While this is only done when energy demands are high, it does mark a huge step for Nuvve. With the company incentivizing EV adoption now, could NVVE stock be worth watching?
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QuantumScape
Another automotive-focused company making waves now is EV battery maker, QuantumScape. For the uninitiated, the company produces solid-state lithium metal batteries for EVs. Similar to our previous entry, QuantumScape appears to be a hot pick-and-shovel play on the EV market right now. So much so that QS stock has more than doubled since its initial public offering back in late November 2020. To highlight, QS stock jumped by over 10% yesterday on account of its latest operational update.
Namely, QuantumScape is now receiving an additional $100 million investment from Volkswagen Group. This is because QuantumScape met a technical milestone with its battery tech. As a result, Volkswagen is now testing the latest generation of QuantumScape’s offerings in its Germany-based labs. No doubt, this marks a significant step forward for QuantumScape with a powerful ally in the automotive industry.
Not to mention, CEO Jagdeep Singh also spoke on CNBC’s “Mad Money” yesterday. He commended President Biden’s $174 billion investment into the EV market. Singh mentioned the importance of EVs being more competitive with combustion engines, indicating that QuantumScapes offerings would help with that. Should this be the case, would you consider adding QS stock to your watchlist?
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General Motors Company
Following that, we have legacy automotive giant, General Motors (GM). Like most of its peers, the company has and continues to shift towards the hot EV and AV industries now. With plans to go carbon neutral by 2040, GM seems set on adapting to shifting market dynamics. Accordingly, the company is looking to invest $27 billion in EV and AV development over the next five years. The most recent of these investments would be GM’s supposed plans to build a $2.3 billion battery plant in Ohio. Thanks to its EV-focused strategy, GM stock has more than tripled in value over the past year. More importantly, auto investors could be eyeing GM stock now thanks to the company’s first-quarter U.S. sales report.
In it, GM saw green across the board as its GMC and Chevrolet SUVs continued to dominate the full-size SUV market. Additionally, GM also saw retail deliveries in both Cadillac and Buick lines surge by 43% year-over-year. On the EV front, GM’s Bolt EV and Traverse also had record first-quarter retail sales figures reporting year-over-year gains of 60% and 39% respectively.
Looking forward, GM’s Chief Economist, Elaine Buckberg said that “auto demand should remain strong” throughout 2021. Buckberg cites rising consumer confidence and spending as key factors in her outlook. Time will tell if this holds true. In the meantime, will you be watching GM stock?
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Ford Motor Company
Topping off our list is another legacy automotive manufacturing player, the Ford Motor Company. Understandably, the company’s massive portfolio continues expanding towards more environmentally-friendly vehicles. Essentially, Ford offers electrified versions of its combustion engine vehicles, for the most part. This would provide leeway to attract consumers who have yet to make the transition towards EVs. As Ford continues to bolster its EV offerings, F stock would be another go-to for auto investors right now. This could be the case given Ford’s latest quarterly sales figures.
Just yesterday, the company reported a 74% year-over-year surge in electrified vehicle sales, selling 25,980 units in the quarter. By and large, the company saw U.S. sales rise by 25% year-over-year across the board. In terms of its all-electric Mustang Mach-E, the company sold a whopping 6,614 units in the quarter.
Adding to that, Ford also mentioned that the Mach-E spends an average of seven days in dealer lots before being bought. This would suggest that demand for EVs is high now. Furthermore, Ford is also planning to expand its EV battery pack assembly capabilities in Spain. All in all, I can understand why investors would be flocking to F stock now. Will you be doing the same?
