5 Fastest Growing Auto Stocks to Buy

In this article, we discuss the 5 fastest growing auto stocks to buy. To read the latest news and detailed analysis around the auto industry, go directly to the 10 Fastest Growing Auto Stocks to Buy.

5. Ferrari N.V. (NYSE:RACE)

1-year stock price growth as of October 20: 57.36%

Ferrari N.V. (NYSE:RACE) is a designer, manufacturer, and seller of some of the finest luxury sports cars, supercars, and grand tourers in the world and is based in Italy. The company also runs a financial segment, Ferrari Financial Services, and sells its vehicles through authorized dealers only in around 60 markets worldwide. Ferrari N.V. (NYSE:RACE)’s stock price experienced a growth of 57.36% in the last twelve months, taking the 5th spot on our list of the fastest-growing auto stocks to buy.

According to Insider Monkey’s database, Ferrari N.V. (NYSE:RACE)’s number of hedge fund holders declined from 32 in Q1 to 30 in Q2. However, the total investments by hedge funds increased from $703.195 million in Q1 to $849 million in Q2. Paul Marshall and Ian Wace’s Marshall Wace LLP was the most significant stakeholder in the company in Q2 with 357,181 shares worth $116.708 million.

Ferrari N.V. (NYSE:RACE) has already entered the alternative energy vehicle market with its hybrid vehicles which accounted for 43% of its total vehicle deliveries in Q2. According to the CEO, it is expected that all-electric vehicles will account for 5% of the company’s global sales by 2026. The company is currently working on its all-electric hypercar which will be rolled out in 2025. Ferrari N.V. (NYSE:RACE) was mentioned in Ensemble Capital Management’s first quarter 2023 investor letter. Here is what it said:

“Ferrari N.V. (NYSE:RACE) (+26.48%): The luxury automaker’s long awaited Purosangue, their first four door, four seater vehicle, has proven so popular that the company announced that they have ceased accepting new orders as they are sold out through all of this year and into 2024. The Purosangue is designed not as copycat sports utility vehicle that many other luxury automakers sell, but as a true Ferrari car that their devoted fan base can use for more practical transportation needs. Since the average Ferrari is only driven a few thousand miles a year or less, they are best understood as mechanical works of art rather than a means of transportation. But with the introduction of the Purosangue, Ferrari enthusiasts will have a vehicle that meets transportation needs, while still delivering the extremely high end experience that you would expect from a car that costs about $500,000.”

4. XPeng Inc. (NYSE:XPEV)

1-year stock price growth as of October 20: 87.43%

XPeng Inc. (NYSE:XPEV) is a Chinese auto manufacturer that produces and sells smart electric vehicles. It is one of the top 15 chinese companies on US exchanges.

In 2023, XPeng Inc. (NYSE:XPEV) is showing aggressive growth in the EV market. The company is making record vehicle deliveries month after month. In the third quarter, XPeng Inc. (NYSE:XPEV) delivered 11,008 vehicles in July, 13,690 in August, and 15,310 in September. In the first nine months of the year, the company has not shown a single month-over-month decline in vehicle deliveries.

By 2024, XPeng Inc. (NYSE:XPEV) expects to expand its footprint in Europe, including the UK, Germany and France. The company also started its sales in the Middle East and at the end of September, it announced that it made its first exports to Israel.

3. Li Auto Inc. (NASDAQ:LI)

1-year stock price growth as of October 20: 117.23%

Li Auto Inc. (NASDAQ:LI) is a Chinese designer and manufacturer of new energy passenger vehicles. While the company’s brand, Li ONE, sells its vehicles, the company also deals with related products and services like charging stalls, automobile internet connection services, and extended lifetime warranties.

Li Auto Inc. (NASDAQ:LI) is one of the fastest-growing auto stocks as it smashed out a delivery of more than 36,000 vehicles in September alone and over 105,100 units in Q3, recording a growth of 212.7% YoY and 296.3% YoY, respectively.

In Q2, hedge funds showed positive sentiment toward Li Auto Inc. (NASDAQ:LI) as 25 hedge funds owned a stake in the company, compared to 22 in Q1. New York City-based Two Sigma Advisors increased its holdings in Li Auto Inc. (NASDAQ:LI) in Q2 by 145% with 3.689 million shares worth nearly $129.498 million.

2. Carvana Co. (NYSE:CVNA)

1-year stock price growth as of October 20: 132.21%

Carvana Co. (NYSE:CVNA) is an Arizona-based online used car retailer. Despite having a rough year in 2022, the company recovered quite well and is now one of the fastest-growing auto stocks. Last year, Carvana Co. (NYSE:CVNA) was on the brink of bankruptcy as its stock price fell over 98.5% from its 52-week high by December due to rising borrowing costs and an increase in used car prices. However, in 2023, the company’s stock is up 132.21% in the last twelve months and 571.06% year-to-date as of October 20.

On September 16, Wedbush upgraded Carvana Co. (NYSE:CVNA)’s stock from Underperform to Neutral and raised its price target from $40 to $48. On October 20, the company was trading at a stock price of $31.07.

1. Modine Manufacturing Company (NYSE:MOD)

1-year stock price growth as of October 20: 162.48%

Modine Manufacturing Company (NYSE:MOD) is an auto parts manufacturing company. The company has tons of products in its portfolio, but it is widely known for its battery thermal management systems and electronics cooling packages. It also produced aftercoolers for the P-51 Mustang fighter plane during World War II. With 162.48% stock price growth in the last twelve months, Modine Manufacturing Company (NYSE:MOD) takes the top spot on our list of fastest-growing auto stocks.

On October 10, Modine Manufacturing Company (NYSE:MOD) announced that it will expand its presence in Europe by 2024. Its Italy-based manufacturing plant will start to manufacture its EVantage thermal management systems for heavy-duty, commercial, and specialty vehicle manufacturers in Europe.

In the second quarter, GAMCO Investors owned a little less than 2.8 million shares of Modine Manufacturing Company (NYSE:MOD) worth approximately $91.7 million, making it the company’s most prominent stakeholder.

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