One of the most lucrative industries in the world is the automobile industry. Subsequently, many investors are searching for the best car stocks to buy in 2021. The beauty of investing in the car market is that anyone can do it, regardless of the amount they have available to invest. However, investing in car stocks is not an easy thing to do, especially with an industry that is rapidly changing due to environmental restrictions and a shift away from fossil fuels. With the proper investments, however, you may be able to generate reliable passive income in an industry you are familiar with and enjoy.
Electric car stocks to buy in 2021
Electric cars are the way of the future. While many may debate how long it will be before fully electric cars are mainstream, there is an undeniable trend towards them. In fact, some states are already implementing plans to have all fully electric vehicles within the next decade. With this in mind, there are certain electric car stocks to buy in 2021 for a long-term profit.
Tesla Inc. (TSLA)
You have probably heard of Tesla — the world’s largest distributor of electric cars. Many expect Tesla to lead the charge as the world transitions to using more electric cars. While many stocks are down in 2020 due to the COVID-19 pandemic, Tesla stock has exploded, rising to more than $650 per share in 2020. Of course, to get in with the biggest name in the electric car industry requires a serious investment, although you can invest in fractional shares at a much lower cost.
NIO Inc. (NIO)
Fewer people have heard of NIO, a Chinese automobile manufacturer that is also leading the charge in the ever-growing electric car industry. However, NIO could be the surprise name in electric car stocks that many are not expecting, and they are an intriguing alternative for those who would prefer not to follow the Tesla hype. As traded steadily between $43 and $48 per share. This is, of course, significantly less than Tesla, and the stock has the potential to rise significantly in the coming years.
Workhorse is a new name in the electric car industry. Nevertheless, they have the power to become big along with the rise in the electric car market. They have consistently traded between $20 and $22 in 2020, which makes it a much more affordable option than both Tesla and NIO. While their path to success long-term may not be as obvious as Tesla, investing in promising young companies within the electric car industry is a great risk that can pay out significantly more than the initial investment if they were to become one of the leaders in the growing industry.
Safest car stocks to buy in 2021
Every investor should establish their goals before they begin investing. While some do not mind taking on more risk with the hope of larger gains, others may simply want a safe car stock to buy in 2021 that they can trust will gradually increase over time. Three proven and reliable car stocks to buy in 2021 if you want a safe and secure option are General Motors (GM), Ford Motor (F) and Toyota Motor (TM).
General Motors Co. (GM)
General Motors Company (GM) first opened in 1908, making it one of the oldest car manufacturers around today. Therefore, it is hard to find a car stock with as much stability and predictability as General Motors Company. They have traded between $41 and $42 this year. While there is little chance of them skyrocketing, the stock should continually increase over time and as the rate of inflation increases, and there is a much lower chance of General Motors doing poorly than with most other investments.
Ford Motor Co. (F)
Ford Motor Company opened in 1903, which dates back even further than General Motors. They have consistently led the charge in the automobile industry from the very beginning, and they have become so popular they are a well-known household name. As far as stock prices, investing in Ford is both a dependable and affordable decision. Although they struggled during the pandemic, the stock price per share generally stays around $9, and it is a safe stock with little chance of letting you down, although it does not have the upside that many desire.
Toyota Motor Corp. (TM)
Toyota Motor Corporation is a Japanese car manufacturer that has been in operation since 1937. Much like General Motors and Ford, many are also familiar with the brand Toyota. Unlike General Motors and Ford, however, Toyota trades at a much higher price, and the average stock price per share for 2020 is around $140. They have had their ups and downs and are slightly more volatile and risky, but they are overall a safe option that has little chance of letting you down.
Value car stocks to buy in 2021
You do not need to be rich to invest in car stocks. There are certain stocks that you can purchase for less than $40 per stock. Three great value car stocks to buy in 2021 are Volkswagen AG (VWAGY), BYD Company (BYDDY) and Green Power Motor Company (GP). While these are not as certain as the safe stocks and may not have the same trend as the electric stocks, they do have a fair amount of safety and upside and are affordable, making them great value car stocks to consider.
BYD Company (BYDDY)
BYD Company is a lesser-known car manufacturer that could do well in the future, and the stock price could subsequently raise significantly. They have seen a major increase in the stock price in 2020, raising from as low as $5 per share to more than $20. The trend could very well continue as they expand and become more popular
GreenPower Motor Company (GP)
GreenPower Motor Company is a Canada-based electric car company that is expected to expand and increase production significantly in the new year, which could make it a great car stock to buy in 2021.