Five Best Auto Manufacturing Stocks To Buy This Year

#4 Fiat Chrysler Automobiles NV (NYSE:FCAU)

– Investors with Long Positions (as of December 31): 28

– Aggregate Value of Investors’ Holdings (as of December 31): $1.26 billion

Shares of Fiat Chrysler Automobiles NV (NYSE:FCAU) remained in a tight range during the fourth quarter, ahead of its spinoff of Ferrari NV. During that period, investors covered by us with long positions in the stock decreased by six, but the aggregate value of their holdings in the company saw a rise of $77 million.  Though Fiat Chrysler Automobiles NV (NYSE:FCAU)’s stock has declined by 46% so far this year, a large part of those losses came on January 4, when the spinoff of Ferrari NV was completed. Most analysts who track Fiat Chrysler Automobiles NV (NYSE:FCAU) currently are not much optimistic about its future growth since the company has a lot of debt on its balance sheet and its margins have declined significantly after the Ferrari spinoff. They are also concerned that its talk with other automobile manufacturers for a potential merger hasn’t yielded any results so far.

#3 Tesla Motors Inc (NASDAQ:TSLA)

– Investors with Long Positions (as of December 31): 29

– Aggregate Value of Investors’ Holdings (as of December 31): $837.44 million

The ownership of Tesla Motors Inc (NASDAQ:TSLA) among the funds in our database inched up by three during the fourth quarter, but the aggregate value of their holdings in the company during the same period declined by 17.2%. Daniel Benton‘s Andor Capital Management made no changes to its stake in the company during the fourth quarter and continued to own 1 million shares of Tesla Motors Inc (NASDAQ:TSLA) heading into 2016. Tesla Motors Inc (NASDAQ:TSLA)’s stock fell at the start of 2016, but has recovered swiftly since the company reported its fourth-quarter results, on February 10, and now trades down by only 4.16% year-to-date. The company is currently preparing to host an event in California, on March 31, at which it will give attendees a chance to test drive the prototype of its much-awaited Model 3 and also start taking reservations for the car. According to analysts, Tesla can raise around $300-$400 million from Model 3 deposits, but taking into account the company’s capital expenditure going forward, it needs to raise another $2 billion by issuing fresh equity or debt in the coming quarters.

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