Automotive Stocks: How To Invest In A Transforming Market?

Equities are essential for every trader worldwide. Most of them have tight connections with forex and commodities, and sometimes even with cryptos. There are some sectors with rich traditions in the equities market. Yet, they need to adapt to nowadays. That’s one of many reasons why automotive stocks bring so much attention to both novice and experienced investors.

Factors Impacting The Automotive Industry

Automotive stocks’ worth can vary due to several factors. Even though renewables and focusing on sustainability are getting more and more attention, most vehicles use petrol. That’s why the performance of some automotive equities in the market can be tightly connected to companies relying on commodities like BP.

Trade BP

Moreover, global automotive demand obviously depends on economic conditions. Traders can keep tabs on current situations by following certain indexes, which can reflect economic trends in the region. In Europe, staying in touch with STOXX50, CAC40, and DAX40 is vital. There are multiple indices in the United States. When it comes to automotive stocks, Japan has some recognizable car manufacturers, so investors should consider NIKKEI225 while exploring the automotive market.

Trade DAX40

Rich Tradition: Automotive Stocks Known For Years

The cusp of the 19th and 20th centuries brought rapid popularization of vehicles. Some companies created solid foundations for their modern performance through the previous century.

When it comes to the United States, no one can deny that General Motors has revolutionized the way of transportation. Constant manufacturing innovations let GM stay at the forefront of the automotive industry.

Trade GM

The Far East is renowned for its attention to work and detail. That’s why traders can glimpse several Japanese automotive stocks, such as Toyota. Its iconic Prius was one of the most crucial developments in hybrid vehicle technology.

Trade Toyota

Automotive Stocks In The European Market

Traders can also keep track of the European market, where they can find many automotive stocks.

The name “Stellantis” may not be as widely recognized as others. However, it is a global French automaker formed from the merger of FCA and PSA Group. It means that it manufactures and sells vehicles like Citroen, Peugeot, Fiat, Jeep, Alfa Romeo, and even the luxury Maserati.

Many drivers and automotive fans regard Germany as the home of vehicle manufacturers. The perfect example is Volkswagen. The company from Wolfsburg focuses not only on developing traditional models but also on expanding its number of electric vehicles.

Automotive Stocks And Sustainability: The Rise Of EVs

If traders want to focus on automotive stocks, they should keep tabs on sustainability and renewable energy. The number of models and actual EVs on the roads grows constantly, and every development in terms of eco-friendly energy sources can impact the automotive market.

For most traders, the first company that comes to mind in terms of EVs is Tesla. Elon Musk started the revolution, the main objective of which was to limit the usage of natural resources for vehicles.

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Multiple companies followed Musk’s vision, which some might say idyllic. Lucid Group develops and manufactures high-end electric vehicles. The company focuses on making electric batteries more and more efficient, and its performance in the market highly depends on the demand for electric vehicles.

Trade Lucid

Luxury Commodities In Automotive Industry

There is also a narrow segment of specific companies that don’t react according to the usual patterns regarding automotive stocks. Luxury car manufacturers focus on completely different factors.

Ferrari, traded under the one-of-a-kind “RACE” symbol on the NYSE, is not so dependable on traditional aspects like oil prices or global automotive demand. The company aims to maintain its brand exclusivity, for example, by being a major force in elite Formula One competition.

Trade Ferrari

The same thing goes for Porsche, which connects German reliability with luxury. However, even those brands keep tabs on EV development. The best example is Taycan – Porsche’s answer to the EV market demand, which is still able to meet customers’ expectations.

Trade Porsche