In this article, we discuss the 10 fastest growing auto stocks in the world. If you want to read more auto stocks, go straight to The 5 fastest growing auto stocks in the world.
The automotive industry is made up of companies that manufacture and distribute vehicles and vehicle parts. Public automotive companies are increasing in number as many electric vehicle (EV) startups and suppliers have gone public through special purpose acquisition companies (SPACs) in recent years. The electrification of the auto industry is nothing short of a revolution, and some of these startups are likely to be major players in the future. Auto stocks can make an important contribution to an investment portfolio because they rise and fall with consumer confidence, and can be useful indicators of economic problems or recovery.
Although the auto market is suffering from the pandemic crisis, vehicle sales in the US dropped by 38% during the 2020 lockdown, the market has now recovered well and continues to grow. Demand for electric vehicles has increased as travel around the world resumes and virus restrictions become a thing of the past. This increase has led to a dramatic shortage of chips, now essential for vehicle manufacturing, reducing production but raising overall prices, with mixed results for the auto industry worldwide.
Some of the top stocks in the auto sector include General Motors Company (NYSE:GM), Tesla, Inc. (NASDAQ:TSLA), and Ford Motor Company (NYSE:F), among others discussed in detail below. In addition to US manufacturers, automakers from Europe, Japan and China are also leading players in the industry. In the first half of 2022, SUVs, trucks and high-margin luxury vehicles gained market share over other cars. In the second quarter of the year, sales of electric vehicles rose 66% in the US.
In a macro downturn where inflation and rising rates have hit the economy, the auto sector has been able to withstand the pressures and record modest gains. Looking ahead to 2023, the auto industry will remain vulnerable to global headwinds due to the energy crisis, slower global demand and continued supply chain issues. An EIU report on the 2023 automotive outlook shows that globally, new vehicle sales will remain flat in 2023 with new car sales increasing by 0.9% and new commercial vehicle sales falling by 1.3% due to an expected recession.
However, sales of electric vehicles are expected to be the bright spots, growing by 25% in the period. Analysts also forecast that new car sales in Western Europe will decline by 3%, while in North America they will fall by 2.4%. Electric vehicle sales figures from emerging economies such as Brazil, India and Indonesia remain disappointing, accounting for less than 1% of the total market share and not seeing significant growth in 2022. This could change as more car brands, especially in Japan, go all-electric vehicles
Another important trend that investors should be aware of is that the emergence of new electric vehicle models and the expansion of government subsidies for the sector will likely contribute to the electric vehicle boom worldwide in the coming year . In the US and Europe, sales of electric cars are increasing rapidly. Electric vehicles now account for nearly 5% of the US auto market share. Norway and Germany remain the strongest European markets for electric vehicles.
It’s also worth noting that conversations around the automotive sector in the media tend to focus on the sector’s electric revolution and the shift towards new energy vehicles by major car manufacturers. However, the used car market barely attracts attention. This is surprising, as used car sales have outpaced new vehicle sales in the United States over the past decade. This is another trend to consider when investing in the automotive space.
Our methodology
Companies that have upcoming growth catalysts and operate in the automotive sector were selected for the list. Data from about 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2022 was used to identify the number of hedge funds that hold stakes in each company.
Photo by Carlos Aranda on Unsplash
The fastest growing auto stocks in the world
10. Tata Motors Limited (NYSE:TTM)
Number of hedge fund holders: 11
Tata Motors Limited (NYSE:TTM) designs, develops, manufactures and sells various automotive vehicles. On December 1, Tata Motors reported that passenger vehicle sales registered a 55% year-on-year growth with 46,425 units sold in November 2022 compared to 29,947 units in the same period last year. November 2022 exports stood at 388 units, registering a year-on-year growth of 130% compared to 169 units in the same period last year.
At the end of 2022Q3, 11 hedge funds in Insider Monkey’s database held $63.9 million worth of holdings in Tata Motors Limited (NYSE:TTM), down from 8 in the previous quarter for worth $45.4 million.
Among the hedge funds it follows is Insider Monkey, a San Francisco-based firm Think investments is a leading shareholder of Tata Motors Limited (NYSE:TTM) with 802,493 shares worth more than $19.5 million.
Like General Motors Company (NYSE:GM), Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F), Tata Motors Limited (NYSE:TTM) is one of the fastest growing automobile companies in the world. .
9. Toyota Motor Corporation (NYSE:TM)
Number of hedge fund holders: 12
Toyota Motor Corporation (NYSE:TM) designs, manufactures, assembles and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories. The company recently reported that third-quarter electrified vehicle sales totaled 111,713 for the company, representing 21.2 percent of total year-to-date sales.
At the end of 2022Q3, 12 hedge funds in Insider Monkey’s database held $741.8M worth of holdings in Toyota Motor Corporation (NYSE:TM), down from 12 in the previous quarter for worth $849.4 million.
Among the hedge funds it follows is Washington-based firm Insider Monkey Fisher Asset Management is a leading shareholder in Toyota Motor Corporation (NYSE:TM) with 5.4 million shares worth more than $710.6 million.
In its Q1 2022 letter to investors, Baron Funds, an asset management firm, highlighted a few stocks and Toyota Motor Corporation (NYSE:TM) was one of them. Here this is what the fund said:
“Toyota’s (NYSE:TM) ‘kaizen’ manufacturing philosophy is based on improving manufacturing by using ‘just-in-time’ processes to eliminate waste and reduce inventory costs. The company does not It envisions disruptive change that will dramatically reduce costs and improve quality.”
8. Lucid Group, Inc. (NASDAQ:LCD)
Number of hedge fund holders: 15
Lucid Group, Inc. (NASDAQ:LCID) is an automotive and technology company that develops electric vehicle (EV) technologies. The company said in a statement recently that it produced 2,282 vehicles at its Arizona factory in the third quarter. It delivered 1,398 vehicles to customers during the same period.
On November 10, RF Lafferty analyst Jaime Perez maintained a buy rating on shares of Lucid Group, Inc. (NASDAQ:LCID) and cut its price target to $17 from $19, noting that the company’s two financing arrangements and its $1 billion asset-based loan should provide enough financial flexibility to start its expansion.
At the end of 2022Q3, 15 hedge funds in Insider Monkey’s database held $99.5M worth of holdings in Lucid Group, Inc. (NASDAQ:LCID), compared to 16 in the previous quarter worth $173.7 million.
7. Li Auto Inc. (NASDAQ:LI)
Number of hedge fund holders: 20
Li Auto Inc. (NASDAQ:LI) designs, develops, manufactures and sells new energy vehicles in the People’s Republic of China. On December 1, Li Auto revealed that it delivered 15,034 vehicles in November 2022, achieving a record for monthly deliveries and representing a year-on-year increase of 11.5%.
On December 15, CLSA analyst Aaron Li maintained a buy rating on shares of Li Auto Inc. (NASDAQ:LI) and cut its price target to $31 from $49, noting that the market is focusing more on profitability after the Fed’s rate hikes, but there was strong momentum for the company
At the end of 2022Q3, 20 hedge funds in Insider Monkey’s database held $1.1 billion worth of holdings in Lucid Group, Inc. (NASDAQ:LCID), compared to 28 in the previous quarter worth $1.4 billion.
Among the hedge funds it follows is New York-based investment firm Insider Monkey Tiger Global Management LLC is a leading shareholder of Li Auto Inc. (NASDAQ:LI) with 17.2 million shares worth more than $396 million.
6. Stellantis NV (NYSE:STLA)
Number of hedge fund holders: 25
Stellantis NV (NYSE:STLA) is engaged in the design, engineering, manufacture, distribution and sale of automobiles and parts. On November 3, Stellantis NV reported that its global Stellantis battery electric vehicle (BEV) sales increased 41% year-on-year to 68,000 units, and low-emission vehicle sales increased to 21,000 units year-on-year year to 112,000 vehicles in the third quarter of 2022.
On October 14, Berenberg analyst Adrian Yanoshik maintained a Buy rating on shares of Stellantis NV (NYSE:STLA) and lowered the price target from EUR 21 to EUR 19.
At the end of 2022Q3, 25 hedge funds in Insider Monkey’s database held $905.5M worth of Stellantis NV (NYSE:STLA), down from 25 in the previous quarter worth of 714.6 million dollars.
Among the hedge funds it follows is Insider Monkey, a Boston-based firm Capital of Arrowstreet is a leading shareholder in Stellantis NV (NYSE:STLA) with 29 million shares worth more than $349.4 million.
In addition to General Motors Company (NYSE:GM), Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F), Stellantis NV (NYSE:STLA) is one of the fastest growing automotive companies in the world. .
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disclosure none The 10 fastest growing auto stocks in the world originally published on Insider Monkey.
