Greetings! I posted this in r/cars, but I am also very interesting in your input on this, having an (admittedly hobby level) interest in both cars and investments through stocks. Who do you think will be the future winners? Technology wise, we are seeing an increased pace of development, further surged by COVID. How will giants like VW, Daimler, GM and BMW fare? The common thread among these are they are all relatively low priced. VW is heading to become the largest EV maker in 2023, Daimler and BMW are making luxury cars competing with Tesla and the Chinese, and GM seem to have plans to retake the American markeds (I am personally skeptical of the latter, but we will see)
VW has already gone up 40% this year, € 243 as we speak, and once it passes 325 it will go past a Price/Earnings rate of 10.
How about Hyundai? They recently laid down a plan for further EV development, decreasing production cost. It is likely this will mean their profits will increase despite high investments, which is not reflected in today's value.
How about the reigning kings? Toyota Motor Corporation are the world's largest in terms of production volume, being okay priced with a P/E rating of 10. Their insistence on hydrogen as a fuel source is certainly very interesting, and it should be noted they actually don't have a single pure EV in their range currently. Will the future development be hydrogen driven?
BMW are also currently well run, with a P/E of 8.5. The public seems to gobble them up, despite some ... unconventional and arguably arrogant decisions not taken lightly by the enthusiasts and older fanbase.
Porsche, which I admittedly am a bit biased for (still aiming for a 911 at some point), already had a large surge - and I wish I got into the stocks during January. Is it too late though? According to Chris Harris on a Top Gear video podcast posted yesterday, they are set for some very interesting developments, switching over to synthetic fuels, and now targeting the Macan crowd, after surging Taycan sales (which I can anecdotally attest to, I see dozens every day here in the EV capital of Norway, Oslo). They also have some of their best, Frank Walliser, at their helm, which seems promising.
How about the Chinese? Dongfeng Motor and Saic motors? They seem cheap, but I am still skeptical of their capabilities and reputation.
Finally here is a compilation of companies, (credit goes to a Norwegian article summarizing this issue). My personal favorites which I am looking to invest into are highlighted in bold.
As 2021 marches on which one of these companies would you place your bets on, personally? Why/why not? How do you think technology development, regulations and stricter rules as well as consumer habits shape the future?
| COMPANY | COUNTRY | P/E RATE | RETURN SO FAR 2021 | RETURN 1 YEAR | MARKET VALUE (BILLION USD) |
|---|---|---|---|---|---|
| Toyota Motor Corp | JPN | 10 | 4 % | 39 % | 249 |
| Bayerische Motoren Werke AG | GER | 9 | 16 % | 120 % | 65 |
| Porsche Automobil | GER | 7 | 67 % | 203 % | 35 |
| Dongfeng Motor | CHINA | 4 | - 20 % | 77 % | 8 |
| Saic Motor | CHINA | 8 | - 17 % | 21 % | 37 |
| Honda Motor | JPN | 9 | 15 % | 54 % | 55 |
| Daimler | GER | 8 | 27 % | 224 % | 94 |
| Hyundai | KOR | 9 | 18 % | 234 % | 43 |
Thank you!
Submitted April 07, 2021 at 07:28AM by yelsent https://ift.tt/2PHAzXV
