The automotive industry is continuing to boom, even with people feeling uneasy about the economy to come. With rapid technological advancements and the growing demand for electric vehicles, the automotive sector is becoming quite an exciting place for traders.
Here are the top automotive stocks you should follow in 2023 if you’re looking for potential growth. These stocks cover electric vehicle manufacturers, traditional automakers, and innovative startups in the automotive industry.
Note: This article does not constitute financila advice in any way. Always do your own research before purchasing a stock or engaging in any sort of speculative market. Alternatively seek professional advice though an accountant or financial planner. Information can change, drastically affecting the value of stocks, including those listed in this article. This article should be used as a list of stocks to follow, not a list of stocks you should buy.
Electric Vehicle Manufacturers Leading the Industry
Electric vehicles have gained significant popularity in recent years. Long gone are the days when the Prius made up 50% of stand-up material. Now, Tesla, NIO, and Rivian are dominating the electric vehicle market, with traditional manufacturers also identifying the growing market and manufacturing their own answers. You can easily keep track of these three companies and the rest of the stocks on this list if you download a mobile trading app.
Starting the list off strong is Tesla Inc. (TSLA), which is essentially a household name at this point when it comes to electric vehicles. If you’re looking for a stock to follow in 2023, TSLA is it. They’ve undergone considerable growth over the last five years that was fairly unprecedented and puzzled some veteran traders, but they’ve somehow maintained the majority of the value they’ve gained with the potential to continue as they maintain a hold on the EV market.
Moving on to NIO Inc. (NIO): NIO is a Chinese electric vehicle manufacturer that has gained substantial market share in China. Known for its high-performance electric SUVs, NIO has been expanding its product lineup and building a strong brand presence. The company’s stock has shown promising growth, making it an attractive investment option, with most traders putting it on their “Buy” list. That said, the company is down from its $22.74 peak, but it is still up year-to-date.
Last but not least, we have Rivian Automotive: Rivian is an American electric vehicle startup that has gained attention for its electric pickup trucks and SUVs. Backed by major investors like Amazon and Ford, Rivian has the potential to disrupt the EV market. The company had its IPO back in November of 2021 but has unfortunately been on a decline value-wise since then. This is still one to keep an eye on, though.
Traditional Automakers with Strong Market Presence
While electric vehicle manufacturers are leading the industry, traditional automakers are also adapting to the changing landscape and investing in electric and autonomous technologies.
General Motors Company (GM): General Motors is one of the largest automakers globally and has been actively investing in electric vehicles. With the launch of its electric vehicle platform, Ultium, GM aims to introduce a wide range of electric vehicles in the coming years. The company’s stock has shown resilience and potential for growth.
Ford Motor Company (F): Ford has been making significant strides in the electric vehicle market with its Mustang Mach-E and electric F-150 Lightning. The company’s commitment to electrification and its strong brand recognition make it an interesting stock to consider. Ford also provides a 5.04% annual dividend, making it a somewhat appealing purchase if you value dividend stocks.
Toyota Motor Corporation (TM): Toyota is known for its hybrid vehicles and has been investing in electric and hydrogen fuel cell technologies. With its strong global presence and reputation for reliability, Toyota remains a solid choice for investors looking for stability and long-term growth. They’ve seen considerable growth these last 5-years and are considered a solid buy by many analysts.
Innovative Startups Disrupting the Automotive Market
The automotive industry is also witnessing the rise of innovative startups that are disrupting traditional models and pushing the boundaries of technology. Here are a few startups worth keeping an eye on:
Lucid Motors (LCID): Lucid Motors is an American electric vehicle manufacturer that aims to compete with Tesla in the luxury EV segment. With its advanced technology and impressive range, Lucid Motors has the potential to make a significant impact in the market. Currently trading at around $6 a share, this is definitely one to watch.
Canoo Inc. (GOEV): Canoo is a California-based electric vehicle startup that focuses on subscription-based mobility. The company’s unique approach to vehicle ownership and its emphasis on sustainability makes it an intriguing player in the automotive industry.
Lordstown Motors Corp. (RIDEQ): Lordstown Motors is an electric vehicle manufacturer that specializes in electric pickup trucks. With its focus on the commercial fleet market, Lordstown Motors aims to provide sustainable transportation solutions for businesses.
Whether you choose to invest in electric vehicle manufacturers, traditional automakers, innovative startups, or other affiliated stocks, it is essential to conduct thorough research and consider your investment goals and risk tolerance. Stay informed about the latest developments in the industry and keep an eye on the above stocks as the market heads into the latter half of 2023.