The automotive industry is worth $1.9 trillion worldwide, and it continues to grow with more demand than supply. As we are in the midst of a shift from gas-powered vehicles to battery-powered ones, these companies will see increased revenue over the upcoming decade. The effect that this will have on their stock price is expected to be significant due to positive changes in their industry over the past three years. Like consumers research their automobile options before buying, investors need to research the stock options before buying.
1. Honda Motor Co., Ltd. (HMC)
Honda Motor Co., Ltd. is a Japanese automaker based in Sofitel Roppongi in Minato, Tokyo. It has been an iconic name in automobile manufacturing since 1917, founded as the Tokyu Car Company with financing from Takakusu Eichiku.
Honda’s market share in the U.S. soared in November 2017 to 8.4%, and it looks to further increase its market share over the upcoming year. Therefore, Honda is growing its customer base and revenue monthly.
2. Tesla, Inc. (TSLA)
Tesla, Inc. is an American automaker based in Palo Alto, California. It is a maker of electric cars and electric car powertrain components for the general public to buy under its Tesla brand. The all-electric Model S is its most publicized offering yet for 2016.
The company has rocketed over the last few years, jumping from $14.89 to $379. Technological advancement in the auto industry leads to a more efficient and eco-friendly automobile. This company has demonstrated its value by growing its vehicle sales over the last few years.
3. Toyota Motor Corporation (TM)
Toyota Motor Corporation is a multinational automaker based in Toyota, Japan. It was founded in 1937 as a subsidiary of the Toyota Group. Today, it is the largest automobile manufacturer in Japan by production volume and the world’s 10th largest automaker by global vehicle sales. It is headquartered in Toyota City, Aichi.
Toyota stock has done relatively well here in the U.S. The company has had 18 consecutive years of growth and has seen positive earnings-per-share growth every year since 2010. It is an excellent opportunity to invest in this industry while still growing.
4. Nissan Motor Co., Ltd. (NSANY)
Nissan Motor Co., Ltd., previously known as Nissan Diesel Corporation, is the largest automobile manufacturer in Japan. It was founded in 1933 with a shared stock corporation structure that emphasized decentralization of decision making but maintained direct supervision by corporate headquarters. From the fourth generation of family leadership to this day, the Yamada family has continued to hold significant ownership levels in Nissan’s stock.
Nissan has had a great run in the last few years, rising from $37.53 to $87.19. It is about 75% higher than the market. Therefore, buying this stock will stand out from the competition.
5. Ford Motor Company (F)
Ford Motor Company manufactures and sells automobiles, passenger vehicles, commercial trucks, and racing vehicles through the Ford and Lincoln brands. The company is headquartered in Dearborn, Michigan. In addition to manufacturing, Ford also has significant funding for unmanned self-driving vehicles.
Since 2013, Ford has been taking over their competitors by buying out the competition. It has resulted in a gradual increase in the value of their stock price. Those who invested $1,000 into the company’s stock in 2008 would now have over $20,000.
These automotive stocks will continue to grow as each of the five companies refine their product portfolio to contribute to the shift in ‘traditional’ automotive products. You can expect this to continue over the coming years with the addition of increasingly sophisticated models from the leading manufacturers.
