Stock prices are pointing to critical areas in the automotive market


Tesla’s unprecedented ascension to a household name within the past year comes on the shoulders of truly special vehicles like the Model 3 and the Cybertruck reveal. On the stock market, TSLA began November 2019 at around $62 per share and has now risen to around $425 per share, peaking at just over $500 per share along the way. The electric car brand has elbowed their way into contention as a true mass-market automaker and is certainly one to watch.

However, Tesla isn’t the only carmaker that’s making waves on the stock market. Three other notable brands are commanding attention, and each one may be demonstrating successful tactics for the industry going forward.

NIO on the Rise

As a premium Chinese electric carmaker, NIO might not seem like a marker for the North American industry. However, their stock price is rising dramatically over the past six months from about $3 per share to more than $38 per share.

Their rise is big news on EV deliveries doubling year over year. As well, there have been discussions about NIO’s expansion into Europe, a market thirsty for economical, efficient vehicles. Although they deliver a fraction of Tesla’s volume – just 5,000 units per month – they show great promise as a carmaker on the rise.

General Motors Climbing

General Motors suffered incredible losses in the early pandemic but was able to weather the storm with cash on hand. Stock prices tumbled from nearly $39 per share a year ago to just $14.33 per share in March. Since then, GM has steadily returned to almost the same position as a year ago, despite ongoing concerns with the pandemic.

Recently, GM has seen a boost in the markets from news that Super Cruise outperforms Tesla’s Autopilot by a long shot. It shows that, despite being a rather traditional carmaker, excelling in advanced tech will get you noticed and increase profits.

Take Notice of Ford

Ford performed better than expected in Q3 2020 even with the continued suppression in sales from a depressed economy. Ford’s stocks saw virtually the same pattern of loss and recovery as GM in the pandemic, but their profitability comes from precision business practices. Ford has done away with lackluster models like the Fiesta, Focus, Taurus, and Fusion and invested heavily in their most profitable lines – F-150 and SUVs, specifically.

The announcement of the Bronco’s return also sparked some upward movement on the markets as the legacy model appeared to strike a chord with consumers.

Ford’s success is from trimming the fat from their lineup and engaging their consumers in a new segment.

Lessons Learned from Stocks to Watch

From these stocks, you can glean insight into successful strategies for carmakers that can also translate into operational success for dealers.

  • Taking a chance on being unique in the industry or expanding into a new market can be profitable if done methodically.
  • It’s alright to be an established force in the industry with traditional means, but striving and achieving success in modern ways should not be neglected.
  • Especially during COVID-19, dealers may need to assess their business and make the hard decisions to return to profitability.

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