In this article we discuss the Top 5 Car Company Stocks to Invest In. If you want to read our detailed analysis of these companies, go directly to the Top 10 Car Company Stocks to Invest In.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a look at the 5 best car company stocks to invest in:
5. Ford Motor Company (NYSE: F)
Number of Hedge Funds: 41
Value of Hedge Fund Holdings: $1.6 billion
In their 2021 outlook, John Lawler, Ford’s CFO, said that they project adjusted pretax profits to be between $8 billion-$9 billion, and adjusted free cash flow to be in between $3.5 billion-$4.5 billion. However, the current shortage of semiconductor chips is a threat incorporated in the company’s estimates. With a $47.1 billion market capitalization and a 35.72% return YTD, Ford Motor Company remains one of the top 10 car company stocks to invest in.
According to our database, the number of Ford Motor’s long hedge funds positions increased at the end of the fourth quarter of 2020. There were 41 hedge funds that hold a position in Ford by the end of December, compared to the 38 funds in the third quarter. The biggest stakeholder of the company is Arrowstreet Capital, with 49.6 million shares, worth $436 million.
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4. Baidu, Inc. (NASDAQ: BIDU)
Number of Hedge Funds: 51
Value of Hedge Fund Holdings: $4.6 billion
Baidu Inc. is a China-based technology company that offers internet-related services and artificial intelligence. Earlier this year, the company disclosed that they plan to form an intelligent EV company. The company also plans to establish a strategic partnership with Geely Automobile.
There were 51 hedge funds in our database that held stakes in Baidu Inc., compared to 43 funds in the third quarter. Jim Simons’ Renaissance Technologies is the biggest stakeholder in the company.
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3. Lucid Motors / Churchill Capital Corp IV (NYSE: CCIV)
Number of Hedge Funds: 57
Value of Hedge Fund Holdings: $982 million
Lucid Motors recently disclosed their merger deal with Churchill Capital Corp, which is projected to generate about $4.4 billion in cash and a $60 billion estimated valuation. The company expects to generate around $2.885 billion in EBITDA by 2026. Lucid Motors’ CEO, Peter Rawlinson, said that the massive valuation is a reflection of their state-of-the-art technology.
As of the end of the fourth quarter, 57 hedge funds in Insider Monkey’s database of 887 funds held stakes in CCIV, compared to 49 funds in the third quarter. Magnetar Capital is the biggest stakeholder in the company, with 17.9 million shares, worth $185 million.
2. Tesla, Inc. (NASDAQ: TSLA)
Number of Hedge Funds: 68
Value of Hedge Fund Holdings: $12.3 billion
Tesla ranks 2nd on our list of top 10 car company stocks to invest in. Cathie Wood’s ARK Invest recently bought about 11,893 shares Tesla shares for ARK Autonomous Technology & Robotics ETF (BATS:ARKQ), 177,214 shares for the ARK Innovation Fund and 51,441 shares for the ARK Next Generation Internet ETF (NYSEARCA:ARKW). In a recent interview, Cathie Wood mentioned several EV stocks and said that Tesla remains the market leader in the EV space. See the highlights of that interview in our article 10 Best EV Stocks According to Cathie Wood.
Our database shows that 68 hedge funds held stakes in Tesla at the end of December, versus the 67 funds in the third quarter.
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1. General Motors Company (NYSE: GM)
Number of Hedge Funds: 70
Value of Hedge Fund Holdings: $6.3 billion
Topping the list of top 10 car company stocks to invest in is General Motors. The company recently said that they plan to make most of their cars electric by 2035. A campaign was launched by the company which they called ‘Everybody In’, with the purpose of enlightening people about the positive effects of transitioning to electric vehicles. General Motors said that it will be offering 30 new electric vehicle models over the next 4 years, which include the well-known Cadillac Lyric, Chevrolet Bolt, and Hummer EV.
A total of 68 hedge funds tracked by Insider Monkey were long GM at the end of December 2020, compared to 67 funds a quarter earlier.
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You can also take a peek at 10 Best Bank Stocks for 2021 and Short Seller Jim Chanos’ Top 10 Stock Picks.
