Best Car Stocks to Buy Now 2022
In 2021, the revenue generation in the automobile sector was over $2.7 trillion. It would be fair to state that the auto industry is a massive industry with consistent opportunities in the stock market. Amidst the pandemic crisis, the auto sector struggled like other industries. But after a tumbling stock price in 2020, the stock index price has managed to recover.
- 1 Best Car Stocks to Buy Now 2022
- 1.1 What are Car Stocks
- 1.2 TOP 5 Car Stocks
- 1.3 How to Invest in Car Stocks Stocks
- 1.4 How to Choose Car Stocks to Invest In
- 1.5 Where to Buy Car Stocks
- 1.6 Conclusion
What are Car Stocks
The high-performing auto stocks revolve around electric vehicle manufacturers. In fact, experts hint that EV manufacturers are the leaders of the future auto sector. On the other hand, there are some legacy auto stocks from classic and established companies that continue to dominate the auto market.
More significant investments in autonomous and electric vehicles are bringing more innovation into the fold. This, in turn, increases the value and price of the auto stocks. Most stock market analysts believe that the auto sector is in a transitional period and would usher in a new era with more dominance of electric and hybrid vehicles.
In the past, the US government has even managed to bail out major automakers amidst shortcomings. With the rise of a major automaker like Tesla, there is a new dawn for automotive stocks. As of 4th March 2022, the 1500 S&P Automobiles Industry Index reported a single-year return of 28.4% as compared to Russell 1000’s 16.5%.1 return.
Here are the top 5 picks for the best auto stocks you can choose to buy and invest in 2022:
TOP 5 Car Stocks
Although the stock price of Tesla is moving on an upward trajectory, it is better for investors to keep an eye on the company. And that’s because a drastic change or decision can, after all, impact the stock price of Tesla. But throughout 2021, Tesla stock price has had significant growth and profit margins for investors. One look at TSLA’s highly valued stock price and you’d realize why it has become a pioneer in EVs.
Unlike many car stocks, the market perception of Tesla’s stock is always optimistic. From investors to the general public, there is a continuous drive to make Tesla a household name in the United States. TSLA is undeniably one of the most growth-driven stocks in the auto market that yields over 100% returns.
Although the recent acquisition of Twitter by Elon Musk had a negative impact on Tesla’s stock, market experts argue that it would recover its lost growth in no time. And some analysts believe that the past performance and growth trajectory of TSLA’s stock would continue for years to come.
Tesla’s high stock price ratio also reflects the heavy infrastructure investment in cutting-edge technologies to render more profit margins. This is a major point for investors who want to make long-term and safe investments in Tesla stock.
With a whopping 920% annual growth rate of Tesla’s stock, it is no wonder more and more investors want to invest in it. As of 18 May 2022, Tesla’s stock price stands at $761.61 and most investors think that its high P/E ratio is justified. After all, TSLA’s stock offers high performance, a safety net, and long-term stability to its investors.
Full Article: Tesla Stock Forecast
Nio, a Chinese-based EV leader is one of the best performers in the stock market. As of May 18, 2022, Nio’s stock continues to increase in the upward direction with an almost 2000% growth rate. As far as high performance and the growth-centric stock goes, Nio has managed to set a high bar for other auto players in the market.
In 2021, Nio reported an almost 110% annual increase in its total vehicle deliveries just for November alone. By the end of Q4 2021, Nio managed to double its revenue stream and earned over $32 billion. It is no wonder securities experts and stock market analysts believe that Nio’s stock projection would further increase in the next four quarters.
By December 30, 2021, there were 30 different hedge funds staked with a valuation of over $813 million in Nio. As a result, Nio managed to hit one of its highest stock prices in early January 2022. As of May 18, 2022, the stock price of NIO stands at $16.35 and the last month’s performance continues to form an upward trajectory.
On March 24, 2021, Shanghai-based EV manufacturer reported fourth-quarter’s fiscal earnings that outperformed previous market estimations. After that, Nio saw a significant annual increase of 51.37% in its revenue generation. On May 01, 2022, Nio announced that it managed to deliver over 5,000 vehicles throughout the month of April. Consequently, it had a positive impact on the Nio’s stock performance.
Full Article: Nio Stock Forecast
XPeng is another Chinese-based leading manufacturer of electric vehicles. Since its listing on NYSE back in August, XPeng has managed to significantly improve its operational efficiency. In fact, the EV maker has also managed to develop its custom autonomous driving solution that increased its stock price.
In February 2021, XPeng decided to roll out XPILOT 3.0 that featured a custom navigational pilot guide for memory auto parking and highways. The current focus of interest for XPeng is to put in place more strategic efforts and focus on more tech innovations that can push its stock price in an upward direction. After the anticipated launch of XPILOT 3.0, the market response and perception leaned in favor of XPeng. In fact, the targeted stock price of XPEV now has a “buy” rating from Bank of America.
Full Article: XPeng Stock Forecast
When it comes to American automakers, Ford Motor is one of the most prominent legacy players. In 2019 alone, the giant automaker had revenue generation of over $156 billion. And the strong revenue reports and increasing sales of Ford Motors continue to increase its stock price.
On the downside, Ford Motors, like other automakers, was not able to maintain its high-performing stock during the last three quarters of 2020. But as of May 18, 2022, Ford Motors has started to regain its strength with a stable stock price.
After major global redesign programs along with an upcoming new line of models, the giant automaker expects to further increase its market share in the auto sector. In fact, since Ford Motor’s announcement of new mode lineups, it has managed to get the “buy” rating from Bank of America with a $10.50 target stock price.
Full Article: Ford Stock Forecast
As of May 10, 2022, Geely Holdings managed to acquire over 34% of Renault Korea Motors’ shares. Right from the get-go, it had a positive impact on the Geely Global stock. On January 21, 2022, it became clear that the collaboration between Geely Auto and Renault Group would improve the development process and launch of a new line of vehicles for the South Korean market.
Most recently Geely Global’s stock price increased on the HKSE right after the carmaker’s listing on STAR Market. By 15 July 2021, Geely Global managed to close its stock price at an all-time high. In Hong Kong, Geely trades have increased by 21 times with more revenue generation.
The continuous validation and improved valuation of the Geely stock in the STAR Market have had a positive impact. As of May 2022, investors expect the Geely stock to get a revised rating and hain a quick recovery of annual auto sales in the Chinese market. This, in turn, will help Geely Autos meet market expectations and boost its stock price in the market.
Full Article: Geely Stock Forecast
How to Invest in Car Stocks Stocks
The market capitalization of major auto players continues to break new records. And that means more valuable and stable car stocks. Unlike other industries, the auto sector has rarely lost its momentum and continues to drive more growth. On the surface, there are too many technicalities and a plethora of stock information available to make a prompt investment decision.
Whether you’re a new investor or an experienced investor, this makes it all more reason to use a dedicated online broker solution like eToro. In fact, through the eToro platform, investors can make quick investment decisions with a few clicks.
How to Choose Car Stocks to Invest In
First, you have to determine whether or not car stocks are right for your investment portfolio. In a broad sense, auto stocks would serve as major contributors to any investment portfolio. Despite the unexpected fall and rise of car stocks, the growth parameters of the auto sector are heading in the right direction.
Still, investors should take a closer look at all the economic indicators and the company’s internal elements to make the right judgment call. Like any other investment, investors should clarify basic questions about car stock. For example, if you want to buy or invest in TSLA’s stock, find out how it is performing on the stock exchange and are there are risks attached to long-term investment.
Follow the lead of most experienced investors who conduct a thorough comparative analysis of car stocks and review technical data to make strategic investment decisions. When it comes to car stocks, your investment approach should be direct and objective.
Where to Buy Car Stocks
Step 1 – Open a new eToro Account
Once you fill out relevant information on the application form, you will access a new eToro account. Think of it as a first step to investing in the most valuable and high-performance car stocks in 2022.
Step 2 – Upload Proper ID
One of the main requirements to make eToro work and invest in car stocks involves uploading an updated ID. The idea is to ensure compliance with regulations set forth in motion by KYC and AML. You can upload your driver’s license, passport, last three months’ bank statement, or utility bill as verification documents.
Step 3 – Add a Deposit
After verification of documents, you still have to go through one more step before investing in car stocks. And that’s adding a sufficient amount of deposit into your eToro account through PayPal, wire transfer, or debit/credit card.
Step 4 – Search for Car Stock
You can take advantage of eToro’s search feature and look for the most valued car stocks to invest in. Once you choose a car stock, make sure to get the trading ticket by clicking on the “trade” button. This allows investors to set predefined profit prices and stop-loss levels.
And players like Nio and Tesla are setting the new tone in the auto sector. For these auto companies, each sector is better than the previous one. And when Tesla, Nio, or Ford Motors decide to roll out more integrated tech features, it increases their stock price. Despite the disruption of the supply chain in the auto sector, automotive giants like Tesla will continue to set high standards and increase their stock prices.