Top 5 Auto Stocks Gaining Ground in the Stock Market Now
As the world focuses on the Russian invasion of Ukraine, many investors continue to seek attractive offers in the stock market. For starters, auto stocks could offer some intriguing opportunities. With autonomous driving becoming a key focus for many automakers, the sector could get a boost as U.S. regulators release final rules eliminating the need for manual driving controls in fully autonomous vehicles. In the past, automakers faced significant challenges in deploying fully automated driving systems due to safety standards that assumed humans would have better control. Thus, automakers in the United States can now build and deploy autonomous vehicles without human controls such as steering wheels or brake pedals.
Elsewhere, it appears that consumers could own a You’re here (NASDAQ: TSLA) for as little as $25,000 in the future. Tesla CEO Elon Musk thinks Panasonic may have created a battery that could open up that possibility. Panasonic intends to develop a larger “4680” battery for sale to US electric vehicle (EV) manufacturers. Well, the battery will have a larger volume and fewer cells while still meeting EV standards. With all that has been said and done, it should come as no surprise that these new automotive technologies will one day redefine the transportation industry. If you share the same sentiments, let’s take a look at some of the top auto stocks in the stock market today.
Automotive stocks to watch now
To start the list, we have the historic automotive company, Ford. Simply put, it designs, manufactures, markets and services a full line of Ford trucks, utility vehicles and cars. The Company also operates a Mobility segment which mainly includes the development of autonomous vehicles and related activities. It owns shares in Argo AI, a developer of self-driving systems, and Spin, a provider of micro-mobility services. Despite a rocky start to the year, the F share has still risen more than 25% over the past year.
Yesterday, Ford and PG&E Corp announced a partnership to offer “two-way” charging vehicles to their customers. This means that electrical charge can travel in both directions, allowing the EV to charge a consumer’s home or tools. The pilot program will test how the Ford F-150 Lightning can interact with the grid to support electrical reliability by providing backup power to homes. The company also says it could potentially provide electricity to the home for up to five days. Ford added that it will likely make most of its electric vehicles two-way in the future. With that in mind, would you bet on the future of the F-share?
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Similar to Ford, General Motors is an automotive company that has been around for over a century and continues to thrive. The company specializes in trucks, crossovers, cars and auto parts worldwide. In addition to this, it also provides financing services through General Motors Financial Company Inc. With over 155,000 diverse employees worldwide, the company envisions a world free of accidents, emissions and traffic jams.
Earlier this week, General Motors and POSCO Chemical announced that they were working with the governments of Canada and Quebec to build a new plant in Bécancour, Quebec. Estimated at around $400 million, the facility will produce cathode active material for General Motors’ Ultium batteries. As a result, these batteries will power electric vehicles such as the Chevrolet Silverado EV, GMC HUMMER EV and Cadillac LYRIQ. Despite mixed feelings around the GM stock in recent months, could this new development propel the stock to greater heights?
Another major automotive company would be the Japanese automaker Toyota. Its Automotive segment designs, manufactures and sells a range of automotive vehicles including sedans, minivans, sport utility vehicles and trucks. Lately, Toyota has stepped up its electrification efforts. In February, there was an additional investment of $90 million for two of its manufacturing plants in the United States, in West Virginia and Tennessee. The aim is to further expand the production of electrified vehicles.
Additionally, Toyota has announced that it will provide bZ4X customers with access to the DC fast charger via EVgo (NASDAQ:EVGO). Thus, EVgo’s high-powered chargers will offer its drivers both flexibility and convenience to quickly charge in prime locations. On top of that, customers who buy or lease the vehicle will get one year of unlimited free charging at all EVgo-owned charging stations nationwide. Overall, should you be paying attention to TM stock right now?
Li-Auto is a Chinese automobile manufacturer of new energy passenger vehicles (NEV). Basically, the company is engaged in the design, development, manufacture and sale of intelligent electric vehicles. Its main products are sport utility vehicles (SUVs) under its Li ONE brand. In addition, it also sells peripheral products and provides related services, such as charging stations, vehicle internet connection services and extended lifetime warranties.
As usual, Li Auto started the month by announcing its latest delivery updates. Impressively, it delivered 8,414 Li ONEs in February 2022, representing a 265.8% year-on-year increase. This brings Li ONE’s cumulative shipments to 144,770 since its market debut. That said, investors can expect a better month-over-month improvement in its March shipments, as February numbers are lower due to the Lunar New Year holiday. With that in mind, do you think LI stock could regain momentum soon?
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Just like Li Auto, Xpeng is a rising star in China’s electric vehicle industry. For the uninitiated, its main products are environmentally friendly vehicles. The company’s main targets are the mid- to high-end segment of the Chinese passenger vehicle market. At present, the company has 3 electric vehicles in the market, namely the G3 SUV, the P7 sedan and the latest P5 sedan. Investors should also note that Xpeng performed a technology upgrade at its Zhaoqing factory during the Lunar New Year holiday in February. Thus, taking advantage of the downtime during the holiday season.
Xpeng isn’t resting on its laurels either. It recently announced that it had started taking pre-orders for its P5 electric sedan in four European countries. For now, the countries are Denmark, the Netherlands, Norway and Sweden. The European version will be equipped with Xpilot 2.5, the company’s advanced driver assistance system. This software system will have standalone functionality to some extent but will still require a driver. All things considered, would you say XPEV stock is one of the top automotive stocks to watch?