Trends for Investing in the Automobile Industry
Have you ever considered owning the company stock of that car or other vehicle you’ve only dreamed of owning? Perhaps it’s a reality worth considering in today’s market with the automotive industry performing reasonably well recently (with a few notable exceptions such as VW’s deep dive late last year from the diesel scandal that still plagues the company with potential penalties and law suits).
Tesla (TSLA) may be just the stock to latch on to – and the luxurious transportation that’s on your wish list. Though analysts have pointed to production problems that have hampered sales in the past, production has begun to accelerate in recent months providing anxious consumers with the cars they crave and improving company margins. With a model soon to hit the streets that has a better price point for mass markets – Model 3 – analysts that track Tesla are somewhat split on expectations for success or failure based on consumer demand and the company’s ability to keep pace with deliveries. Within a population of 21 analysts eight evaluate TSLA as a buy, seven as a hold, and six others call it as a sell. You make the call that suits your investment strategy.
Tesla stock values are up in the neighborhood of 40% over last month making day trading in TSLA an attractive proposition. Perhaps with the right timing you can gain enough to actually purchase one. One consideration that analysts call attention to is the company’s problems in bringing their relatively expensive Model X SUV to market. On the other side of the coin is Teslas’s continuing success in driving down essential costs such as the batteries that make their vehicles possible.
All these various considerations in the future of Tesla drive investors in different directions, often selling short which provides great opportunities for day traders looking for the right price. If you have a love of technology and automobiles this may be the time to combine your interests of day trading with high-tech vehicles.
Other players competing for your investments in the automotive industry include more long-term players such as Toyota – rated as the world’s #1 automaker, #2 Volkswagen, and #3 General Motors. VW is of course working through damage control of the cost that will be realized by the diesel scandal that rocked confidence in the company, generated changes in management, and significantly lowered the stock price. On the plus side the low buy side could be just the time to buy in. VW is well-positioned with their Audi brand to participate in the electric vehicle market giving Tesla a run for their money.
How to Benefit from Trends in the Automobile Industry
Use news updates and analyst trends to your advantage in spotting the opportunity that matches your investment strategy. Keep an eye on perpetually changing regulatory issues that could also impact automobile stocks. Environmental requirements on automobile manufacturers can add cost to vehicles and increase expense to manufactures that impacts earnings and stock prices.
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Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.