4 Top Automotive Stocks To Check Out In The Stock Market Today
Automotive stocks have been a popular choice among investors in the stock market over the past few years. For starters, we are witnessing the electrification of vehicles at an unprecedented level. Any company within the automotive industry would have to dive into the electric vehicle (EV) space to remain relevant in the future. We need to look no further than the poster child of EV, Tesla (NASDAQ: TSLA) as a prime example. Currently trading near an all time high, TSLA stock has risen by more than 180% over the past year.
Earlier this week, Fisker (NYSE: FSR) announced a worse-than-expected third-quarter earnings report. However, the company stock did not suffer significantly as investors do not seem to be overreacting. Most investors are paying attention to its milestones as the company currently has no sales. In detail, the company announced that it is on track to launch the Fisker Ocean electric-SUV in November 2022. In fact, reservations have hit 18,600 as of Tuesday. Safe to say, the demand for its Fisker Ocean continues to rise. With all this in mind, here is a list of four top automotive stocks in the stock market today.
Best Automotive Stocks To Buy [Or Sell] Right Now
- Ford Motor Company (NYSE: F)
- Volcon Inc (NASDAQ: VLCN)
- Nio Inc (NYSE: NIO)
- Nikola Corporation (NASDAQ: NKLA)
Ford
First, we will be looking at the automobile company, Ford. In detail, it designs, manufactures, markets and services a full line of Ford trucks, utility vehicles, cars, and Lincoln luxury vehicles. Besides that, it holds ownership of Argo AI, which is a developer of autonomous driving systems. It has been a stellar year for the company’s stock to say the least, climbing more than 140% since the start of the year.
The latest catalyst to fuel its upward momentum would be the introduction of a sustainable financing framework. This focuses on ambitious plans in vehicle electrification and other environmental and social areas. Also, it announced a cash tender offer to repurchase up to $5 billion of the company’s higher-cost debt. So, it hopes to strengthen the company’s balance sheet and financial flexibility and return its credit ratings to investment grade.
Furthermore, Ford recently partnered with Kid Trax to celebrate the return of the iconic Ford Bronco. Well, it is the first time since 1996 that the Ford Bronco is back on the market, and Kid Trax honors its return as the exclusive Ford Bronco toy licensor in 2021. Thus, a kid-sized version of the SUV will be available in the market now. Given these exciting developments, would you consider buying F stock as it continues to show strength?
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Volcon
Another automotive company that is making waves would be Volcon. Put simply, this electric powersports vehicle company engages in developing electric two- and four-wheel motorcycles and utility terrain vehicles. Since its debut in the stock market last month, VLCN stock has climbed more than 35%.
Last Thursday, Volcon announced the Phase I release of its mobile app for Apple iOS and Android devices. Fascinating enough, the company allows riders to use their phones and applications as a dashboard to set ride modes, check battery status and even update the bike’s firmware. This is a major milestone for the company as it aims to offer a matchless suite of vehicle upgrades and controls to its customers.
Not to mention, we continue to see the company expand internationally. The latest expansion includes Guatemala, Belize, and Panama to meet customer demands. Prior to this, only Mexico, Costa Rica and Paraguay in the Latin American region had the luxury of access to its top notch powersport vehicle. So, as electrification of vehicles continues to sweep the globe, would VLCN stock be in prime position to benefit from this trend?
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Nio
By now, those familiar with the EV space would be no stranger to what Nio has to offer. Often dubbed the Tesla of China, the company manufactures smart and connected electric vehicles. In particular, its EVs are integrated with next generation tech and artificial intelligence. While it may not be a banner year for NIO stock thus far, there are reasons to be optimistic about its future.
On Monday, the company provided October’s vehicle delivery update. Diving in, it delivered 3,667 vehicles, a decrease of 27.5% year-over-year. Well, this is due to restructuring and upgrades of manufacturing lines and for the preparation of new product introductions. That said, the company claims that its new orders reached another all-time high in October, driven by increasing user demand.
Furthermore, Nio will be announcing its third-quarter earnings next week on November 9. In the second quarter, revenues were $1.3 billion, up 127.2% from the prior year’s quarter. Hence, investors will be on the lookout if Nio will be able to keep up its impressive performance. With that in mind, would you buy NIO stock ahead of its earnings report?
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Nikola
To sum it up, we have Nikola Corporation. Essentially, the company specializes in battery-electric and hydrogen trucks. Moreover, it provides zero-emissions transportation and infrastructure solutions. Some of you may have noticed, NKLA stock has been skyrocketing over the past month. It climbed more than 30% within the period.
This past week, the company announced its third-quarter business update. Well, it announced a $0.22 per share loss that was better than the expected $0.28 by analysts. That aside, it also announced that it is on track to deliver up to 25 of its Tre battery electric vehicles to dealers and customers by the end of the year. In addition, it has built seven hydrogen fuel cell EVs that are in testing.
However, what appears to have excited many investors would be the announcement of settlement talks with the U.S. Securities and Exchange Commission. It appears that the company will be paying a $125 million civil penalty in installments. This would bring the company a step closer to closing a probe that’s been a nuisance over its path of production. All things considered, would it be too late to jump on the NKLA stock bandwagon?
