5 Best Automotive Stocks To Buy Now

In this article, we will be taking a look at 5 best automotive stocks to buy now. To read our detailed analysis of the automotive industry, you can go directly to see the 12 Best Automotive Stocks To Buy Now.

5. Aptiv PLC (NYSE:APTV)

Number of Hedge Fund Holders: 40

Aptiv PLC (NYSE:APTV) is an automotive parts and equipment company. It is based in Ireland.

Joseph Spak at UBS initiated coverage on Aptiv PLC (NYSE:APTV) shares with a Buy rating and a $143 price target on September 13.

Aptiv PLC (NYSE:APTV) had 40 hedge funds long its stock in the second quarter, with a total stake value of $1.8 billion.

Here’s what Artisan Partners said about Aptiv PLC (NYSE:APTV) in its second-quarter 2023 investor letter:

“Along with Catalent, we ended our investment campaigns in Aptiv PLC (NYSE:APTV) and Nasdaq during the quarter. Aptiv is a leading provider of safety, infotainment and electronic control components to the automotive market. Our view was that the company was well-positioned to benefit from several strong secular industry trends—the shift from internal combustion engines to electric vehicles, autonomous driving and increased computing intensity in vehicles. Over our holding period, a volatile macro environment (pandemic, supply chain shortages) steadily weighed on the profit cycle despite the company’s strong new business announcements. Furthermore, we believe the company may be increasingly disadvantaged as leading auto manufacturers work around tier-one suppliers (such as Aptiv) to maximize profits and speed to market. While the profit cycle may ultimately take hold, we concluded that several of our semiconductor holdings (ON Semiconductor, Lattice Semiconductor and Monolithic Power Systems) offer stronger leverage to these important new auto trends and decided to exit the position.”

4. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 40

UBS analyst Joseph Spak initiated coverage on Ford Motor Company (NYSE:F) shares with a Buy rating and a $15 price target on September 13.

Ford Motor Company (NYSE:F) is an automobile manufacturer based in Dearborn, Michigan. The company develops, delivers, and services Ford trucks, commercial cars, and vans, among more.

We saw 40 hedge funds long Ford Motor Company (NYSE:F) in the second quarter, with a total stake value of $895.5 million.

3. AutoZone, Inc. (NYSE:AZO)

Number of Hedge Fund Holders: 52

In total, 52 hedge funds were long AutoZone, Inc. (NYSE:AZO) in the second quarter. Their total stake value was $1.5 billion.

AutoZone, Inc. (NYSE:AZO) is an automotive retail company based in Memphis, Tennessee. The company retails and distributes automotive replacement parts and accessories.

A Buy rating and a $2920 price target were maintained on AutoZone, Inc. (NYSE:AZO) on September 21 by Taylor Conrad at Argus Research.

2. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 72

General Motors Company (NYSE:GM) is another automobile manufacturer on our list. It designs and sells trucks, crossovers, cars, and automobile parts, among more.

General Motors Company (NYSE:GM) was found in the portfolios of 72 hedge funds in the second quarter, with a total stake value of $2.5 billion.

Tom Narayan at RBC Capital reiterated an Outperform rating on General Motors Company (NYSE:GM) shares on August 14, alongside a $48 price target.

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 79

An Outperform rating and a $305 price target were maintained on Tesla, Inc. (NASDAQ:TSLA) by Tom Narayan at RBC Capital on September 12.

Our hedge fund data for the second quarter shows 79 hedge funds long Tesla, Inc. (NASDAQ:TSLA). Their total stake value was $6.5 billion.

Tesla, Inc. (NASDAQ:TSLA) is a renowned manufacturer of electric vehicles. It is based in Austin, Texas.

This is what Baron Funds said about Tesla, Inc. (NASDAQ:TSLA) in its second-quarter 2023 investor letter:

Many factors contributed to the strong performance of our largest Disruptive Growth position, Tesla, Inc. (NASDAQ:TSLA), in the period. Investors’ concerns regarding Tesla in 2022 continue to dissipate, and the company’s business has continued to grow materially, although at below peak margins. Tesla’s deliveries in China are recovering. The company’s newest factory in Texas has ramped production and should contribute to improved domestic sales and margins. U.S. government policies have lowered the cost to own Tesla vehicles, while also reducing the company’s battery production expenses.

We continue to believe that Tesla is only scratching the surface of its potential. We regard announced partnerships between Tesla and its competitors in the quarter as important. In early June, Tesla agreed to provide Ford Motors access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV manufacturers, including General Motors, Rivian, and Volvo, quickly followed suit. We expect additional charging partnerships to ensue. In our view, these relationships validate Tesla’s charging technology and infrastructure as superior to other standards. Consolidation around a single technology should accelerate charging infrastructure deployment, diminish the risk of Tesla’s technology becoming obsolete, and lessen a key concern of hesitant EV purchasers. EV adoption is at a tipping point. And Tesla, with its approximately 60% domestic market share of EVs, should be the most important beneficiary of this shift…”  (Click here to read the full text)

See also 20 Countries with the Most Electric Vehicles in 2023 and 10 Best Small Cap Electric Vehicle Stocks to Buy.