5 Automotive Stocks For Your April 2022 Watchlist
As electric vehicle (EV) and automotive vehicle (AV) trends continue to gain traction, automotive stocks in the stock market continue to be in the spotlight. The industry is evolving before our very eyes and it may well just be the tip of the iceberg. We saw Tesla (NASDAQ: TSLA) announcing an all-time high quarterly delivery for its first quarter of 2022. Tesla delivered 310,048 vehicles for the quarter, exceeding some analysts’ expectations despite the supply chain disruptions faced by the industry. As a result, JP Morgan raised TSLA stock’s price target to $335 from $325.
Elsewhere, Xpeng (NYSE: XPEV) also recently announced its first-quarter deliveries. It delivered 34,561 vehicles during the quarter, a 159% increase year-over-year. Well, all these numbers further illustrate that the automotive industry is going electric. Thus, it is reasonable to assume that these trends would continue to draw the attention of investors. With that said, here are some of the top automotive stocks worth looking at in the stock market today.
Automotive Stocks To Watch In April 2022
Firstly, we have the highly-anticipated EV company, Fisker. Its primary focus is on building a technology-enabled, asset-light automotive business model for the automotive industry. For example, its Fisker Flexible Platform Agnostic Design is a process that allows the design and development of a vehicle to be adapted to any given EV platform. Over the past month, FSR stock has risen by more than 30%.
Last week, Fisker announced that it has received more than 40,000 reservations for the Fisker Ocean SUV. The company’s Fisker Ocean One comes with fully loaded premium features such as 22” F3 SlipStream wheels, recycled carbon fiber inserts, MaliBlu interior, and a commemorative digital signature. As a result, Fisker will open pre-order reservations for the limited-edition vehicle on July 1, 2022, as demand continues to rise. Additionally, the company does not expect to raise its prices due to inflation or commodity-cost pressures through 2023. Given the level of progress shown by Fisker, should investors be banking on the future of FSR stock?
General Motors (GM) is one of the leading automotive companies in the world. Essentially, the company designs, builds, and sells trucks, cars, and even automotive parts around the world. Besides that, GM also operates Cruise, a segment that engages in the development and commercialization of autonomous vehicle technology. With speculations of autonomous driving and electric vehicles being the future of the industry, GM constantly builds on its strong foundation to capitalize on these long-term trends.
Recently, reports are suggesting that Canada will be announcing its support for GM’s multi-billion-dollar investment in two plants. This would include one that will produce EVs, according to a government source. There could be credibility to these reports as Canada is trying to safeguard the future of its manufacturing heartland in Ontario. After all, the investment in EV supply chains would make sense as there is an increasing emphasis on cutting emissions around the world. Considering these factors, would you be adding GM stock to your watchlist?
Unlike the previous entries, BorgWarner is a provider of technology solutions for combustions, hybrid, and EVs. In detail, the company operates through four segments, Air Management, e-Propulsion & Drivetrain, Fuel Injection, and Aftermarket. The company accelerates the world’s transition to eMobility as it helps to build a cleaner, healthier and safer future. Hence, BorgWarner believes that the company is the ideal partner for companies to go electric.
BorgWarner started the month of April with a huge positive. It announced that it has completed its acquisition of Santroll Automotive Components, a carve-out of Santroll’s eMotor business. Safe to assume, the acquisition will strengthen its vertical integration, scale, and portfolio breadth in light vehicle e-motors while allowing for increased speed to market. As such, should BWA stock gain more attention in the automotive industry right now?
Another top automotive company that is often overlooked is BYD. Essentially, this is a China-based company that engages in the manufacture and sales of transportation types of equipment. Its products include electric vehicles, rechargeable batteries, and photovoltaic products. With questionable sentiments around Chinese stocks over the past few years, it is understandable why BYDDY stock may go under the radar of many investors. That said, BYD remains one of China’s largest EV makers.
Recently, BYD said that it will stop making combustion engine vehicles. From now onwards, it will only produce full electric and heavily electrified plug-in hybrid cars. However, it will not completely stop the production of gasoline engines as smaller highly efficient engines will still play a role in plug-in hybrid cars. The company’s commitment is a response to Beijing’s pledge to boost green energy consumption to bring carbon emissions to a peak by 2030. Prospective investors should note that BYD sold 104,878 units of EVs and plug-in hybrid vehicles in March, as compared to just 24,218 units in the same month last year. Given these encouraging developments, would you consider BYDDY stock a top automotive stock to watch?
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To sum up the list, we have automotive industry supplier Meritor. Put simply, this is a company that supplies a range of integrated systems, modules, and components to original equipment manufacturers. It also caters to the aftermarket for the commercial vehicle, transportation, and industrial sectors. MTOR stock has risen more than 40% since the start of the year. By and large, this came after Cummins (NYSE: CMI) announced its plans to acquire Meritor back in February.
Furthermore, Meritor also recently announced a new standard position agreement with Extreme Trailers. The agreement is for three years, whereby Meritor will supply MTA™ and MTA-Tec6™ suspensions with its latest EX+™ LS single-piston air disk brakes. This suspension is yet another example of Meritor’s commitment to innovation and collaboration with its customer for the trailer market. Now, this partnership will be integral for Meritor’s development process and a stepping stone to launching its MTA-Tec6. All things considered, should investors be keeping a close eye on MTOR stock?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.