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Best Automotive Stocks To Invest In 2022

Which car-related task would you rather be doing right now: searching high and low for a lemon law attorney in Los Angeles, or checking out what stocks to drop a few dollars on to boost your portfolio? We’re inclined to believe you’ve chosen the latter, and with that in mind, we’re going to be covering some prime picks for 2022 that you should keep your eyes on.

Determining The Best Stock Picks

We all know that a “sure thing” doesn’t really exist when it comes to stocks. Still, there are trends we can watch and sources of information we can turn to in order to gain a more educated view of what’s most likely to happen in certain markets. We’ve compiled several sources right here, and, unforeseen events (like the invasion of Ukraine) notwithstanding, they can provide some insight on what automotive stocks to watch closely.

According to InvestorPlace, for instance, “geopolitical issues like the Russia-Ukraine crisis are weighing down growth stocks in the EV sector”. Even so, EVs are a rapidly growing market, and as such, investors may have opportunities by focusing on:

  1. General Motors
  2. Toyota
  3. Ford
  4. Volkswagen
  5. Tesla
  6. Blink Charging
  7. XPeng Motors
  8. Nio
  9. Rivian Automotive
  10. Lucid Group

Many of these picks are companies with longevity—leaders within the automotive manufacturing landscape. Their forays into the world of EVs, then, is backed by experience and resources, so for investors, this could signal a “right time” to begin building a portfolio with future growth in the EV sector in mind. Meanwhile, though, Nasdaq has a slightly different list of top picks, still focusing on the importance of EVs and with some of the same automakers:

  1. Ford
  2. General Motors
  3. Tata Motors Limited
  4. Toyota
  5. Harley-Davidson

They also urge investors to look out for Honda and Sony on the horizon. The two companies are reported to be joining forces to create their own electric vehicle company, and will likely “leverage upon each other’s strengths” to get an automobile to market by the year 2025.

Finally, Bloomberg, in their 10 Top Company Stocks to Watch in Q2 2022, lists only one automaker: Volkswagen. Why such a focus on this legendary German manufacturer? First, they cite the fact that “battery electric vehicles are the cleanest way forward for cars,” meaning that focus on EVs is high and it’s the proverbial lane to be in. 

VW, they say, is “quickly electrifying, with 30% of 2023 sales on track to be battery-powered models.” So, they’re expanding quickly into this hot area, with Bloomberg expecting them to overtake Tesla in sales by 2024. Just a few things to watch for, they say, such as how supply chain issues, complicated by Russia invading Ukraine, will affect VW’s performance. There’s also the expected announcement of a Porsche IPO (or spinoff) later this year that could put VW’s prospects into flux, but it all remains to be seen.

Of course, there could always be global shifts that see these predictions change, but the overall point—that you should try to take in and analyze as much info as you can to make your informed picks—remains. Be sure to keep reading and learning so you can make the best decisions possible.

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