The Solely 5 Auto Producers Outperforming the Market in 2021

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The continuing chip provide scarcity and better enter costs pressured many automobile producers to chop manufacturing this yr. Nevertheless, rising demand, rising investor optimism, and coverage help for the electrical car business have enabled Tesla (TSLA), Common Motors (GM), Ford (F), Lucid Group (LCID), and Tata Motors (TTM) to outperform the broader markets.

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Regardless of rising shopper spending, the rising chip provide scarcity affecting manufacturing, low stock, and rising car costs led to lower-than-expected November U.S. auto gross sales.  Nevertheless, rising investments to extend chip manufacturing, carbon-neutral targets, and the passage of the Bipartisan Infrastructure Invoice that allots vital funding for the rising electrical car (EV) business is predicted to facilitate the auto business’s speedy restoration within the upcoming months.

Whereas many automobile shares suffered, main auto producers nonetheless outperformed the broader markets and delivered record-high gross sales progress all through this yr, owing to their sturdy stock, international model recognition, and the substantial availability of auto parts.

Tesla, Inc. (TSLA), Common Motors Firm (GM), Ford Motor Firm (F), Lucid Group, Inc. (LCID), and Tata Motors Restricted (TTM) are the one auto producers which have outperformed the S&P 500 index to this point this yr.

Tesla, Inc. (TSLA)

EV big TSLA designs, develops, manufactures, leases, and sells high-performance EVs, EV powertrain parts and affords companies associated to its sustainable vitality merchandise internationally. The corporate operates in two segments ─ Automotive; and Vitality Technology and Storage. It develops vitality storage merchandise, industrial amenities, and utility websites and owns its gross sales and repair community.

On November 1, 2021, TSLA opened its 10 Supercharger places to non-Tesla electrical autos for the primary time within the Netherlands. Non-Tesla drivers might want to create an account within the Tesla app, choose “Cost Your Non-Tesla” seek for the closest Supercharger location, add a fee technique and begin charging. With this sluggish roll-out, TSLA expects to witness rising gross sales from the Supercharger community within the coming months.

For its fiscal third quarter, ended September 30, 2021, TSLA’s whole revenues got here in at $13.76 billion, representing a 56.8% year-over-year rise. The corporate’s gross revenue got here in at $3.66 billion, up 77.4% from the year-ago interval. TSLA’s earnings from operations got here in at $2 billion, indicating a 147.7% rise from the prior-year interval. Whereas its non-GAAP internet earnings elevated 139.5% year-over-year to $2.09 billion, its non-GAAP EPS elevated 144.7% to $1.86. The corporate had $16.07 billion in money and money equivalents as of September 30, 2021.

Analysts count on the inventory’s EPS to extend 170.5% year-over-year to $6.06 within the present yr. The consensus income estimate of $51.15 billion for the present yr represents a 62.2% rise from the prior-year interval. As well as, it surpassed Road EPS estimates in three of the trailing 4 quarters. TSLA’s EPS is predicted to develop at a fee of 73.1% each year over the subsequent 5 years.

The inventory has gained 37% year-to-date, beating the S&P 500’s 22.8% returns. It closed yesterday’s buying and selling session at $966.41.

Common Motors Firm (GM)

GM designs, manufactures, and sells vehicles, vehicles, crossover autos, and associated car elements to sellers for shopper retail gross sales, in addition to to fleet prospects, together with every day rental automotive firms, industrial fleet prospects, leasing firms, and governments worldwide. The corporate operates by GM North America; GM Worldwide; Cruise; and GM Monetary segments. It additionally affords car safety, upkeep, satellite tv for pc radio, and automotive financing companies.

On December 9, 2021, GM and MP Supplies (MP) shaped a strategic collaboration to develop a totally built-in U.S. provide chain for uncommon earth magnets with excessive resiliency and environmental sustainability. Beneath the long-term settlement, MP will provide U.S.-sourced and manufactured uncommon earth supplies, alloy, and completed magnets that allow electrical motors to remodel electrical energy into movement in varied EV fashions utilizing GM’s Ultium Platform. This initiative will assist the businesses obtain extensive recognition within the EV business.

GM had $17.37 billion in money and equivalents as of September 30, 2021. The consensus EPS estimate of $6.72 for the present yr represents a 37.1% rise from the prior-year interval. Analysts count on GM’s income to enhance 5% year-over-year to $128.60 billion for the present yr. It surpassed the consensus EPS estimates in three of the trailing 4 quarters. Its EPS is predicted to develop at a 15.2% fee each year over the subsequent 5 years.

The inventory has gained 42% year-to-date. It ended yesterday’s buying and selling session at $59.13.

Ford Motor Firm (F)

F designs, manufactures, markets, and companies a spread of vehicles, vehicles, sport utility autos, electrified autos, Lincoln luxurious autos, and associated elements and equipment worldwide. The corporate operates by three segments ─ Automotive; Mobility; and Ford Credit score. It gives retail installment sale contracts for brand new and used autos and direct financing leases for brand new autos to retail and industrial prospects.

On December 8, 2021, F progressed in its objective to achieve sustainability by making wiring harness clips in its Ford Bronco Sport fashions from ocean-harvested plastic. Possessing the identical power and sturdiness of used petroleum-based elements, the nylon materials gives a ten% financial savings in value and requires much less vitality to supply. This makes F the primary automaker to make use of 100% recycled ocean plastics to supply automotive elements and expects to achieve widespread recognition throughout the business.

F had $12.96 billion in money and money equivalents as of September 30, 2021. Analysts count on the inventory’s EPS to develop 363.4% year-over-year to $0.43 within the present yr. The consensus income estimate of $126.83 billion for the present yr represents a 9.4% rise from the prior-year interval. As well as, it surpassed Road EPS estimates in every of the trailing 4 quarters. Analysts count on the inventory’s EPS to develop at a fee of 77.7% each year over the subsequent 5 years.

The inventory has gained 132.4% year-to-date. It closed yesterday’s buying and selling session at $20.43.

Lucid Group, Inc. (LCID)

LCID is a know-how and automotive firm that develops electrical car (EV) applied sciences. The corporate designs, engineers, and builds electrical autos, EV powertrains, and battery techniques. As of June 30, 2021, it operated eight retail studios in the USA.

On November 5, 2021, LCID opened the Lucid Studio, its latest retail location at Tysons Nook Heart within the Washington, D.C, Metro Space. This retail location ought to allow LCID to develop additional the total Lucid Air lineup of luxurious, high-performance EVs on the Japanese Seaboard.

LCID had $4.80 billion in money and money equivalents as of September 30, 2021. The consensus income estimate of $2.10 billion for the subsequent yr represents a 2340% rise from the prior-year interval. The inventory has gained 291.1% year-to-date. It ended yesterday’s buying and selling session at $39.15.

Tata Motors Restricted (TTM)

Headquartered in Mumbai, India, TTM is a multinational automotive company engaged primarily within the enterprise of car merchandise, consisting of all forms of industrial and passenger autos. It is usually engaged in car financing. It additionally gives info know-how (IT) companies, machine instruments, and manufacturing facility automation companies.

TTM witnessed whole gross sales within the home & worldwide market of 62,192 autos in November 2021, representing a 25.3% rise from the prior-year interval.

For its fiscal second quarter ended September 30, 2021, TTM’s whole income from operations elevated 106% year-over-year to ₹61.38 KCr ($8.09 billion). The corporate had ₹30.33 KCr ($4 billion) in money and money equivalents as of September 30, 2021.

Analysts count on the inventory’s income to extend 3.5% year-over-year to $38.78 billion within the present yr. It surpassed Road EPS estimates in three of the trailing 4 quarters.

The inventory has gained 153.6% year-to-date. It closed yesterday’s buying and selling session at $31.95.


TSLA shares have been buying and selling at $958.51 per share on Tuesday afternoon, down $7.90 (-0.82%). 12 months-to-date, TSLA has gained 35.83%, versus a 25.15% rise within the benchmark S&P 500 index throughout the identical interval.


In regards to the Creator: Sweta Vijayan

Sweta is an funding analyst and journalist with a particular curiosity to find market inefficiencies. She’s captivated with educating traders, in order that they could discover success within the inventory market.

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