Investing in car stocks

Car stocks offer investors the chance to back companies with international renown. But the global performance of this industry can be inconsistent and isn’t immune to market-impacting events.

What are car stocks?

Car stocks are stocks from companies involved in the production of automotive vehicles. This investment category includes major commercial automakers, like Ford, General Motors, Toyota, heavily traded but relative newcomer Tesla, and others. It also includes companies that produce emergency vehicle equipment, signaling devices, military vehicles and specialty trucks.

How to invest in the car sector

There are several ways you can start investing in car stocks. You can buy shares of individual car stocks or invest in an ETF or other fund that invests in a collection of these kinds of stocks.
Here’s how to get rolling:

1. Choose a stock trading platform. You have plenty to choose from, so be sure to compare your options to find the one that works best for you.
2. Open your account. Be ready with your ID, Social Security number and bank account information.
3. Fund your account. You’ll need to transfer money to your brokerage account before you can start investing. Some platforms let you start with as little as $1.
4. Search for stocks. Look up stocks by ticker symbol or use a stock screener to filter the types you’re interested in.
5. Place an order. Once you’ve found an investment you want, specify how much of it you wish to purchase and submit your order.
6. Monitor your investments. Track the performance of your portfolio by logging on to your account.

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Car stocks

There are plenty of car stocks that trade on US exchanges, both from companies headquartered in the US, like Ford, and from international companies, like Ferrari. See how the following stocks are performing, and view details like market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield.

• Cps Technologies (CPSH.US)

  Company summary

  CPS Technologies Corporation produces and sells advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets. It primarily offers metal matrix composites that are a combination of metal and ceramic, such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heatspreaders used with integrated circuits for use in internet switches and routers. The company also assembles housings and packages for hybrid circuits. It primarily sells its products to microelectronics systems companies in the United States, Europe, and Asia. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is headquartered in Norton, Massachusetts.

  Historical performance

  Stock information

  • Market capitalization: $42738848
  • P/E ratio: 22.7692
  • PEG ratio: 0
  • Dividend yield: 0%

  Get more detailed information and learn how to buy CPSH.US stock

• Ault Global (DPW.US)

  Company summary

  Ault Global Holdings Inc., through its subsidiaries, designs, develops, manufactures, and sells power system solutions for the military/aerospace, medical, and industrial-telecommunication industries in North America, Europe, the Middle East, and internationally. It offers custom power system solutions; high-grade flexibility series power supply products, such as power rectifiers; and value-added services for original equipment manufacturers. The comany also provides power conversion and distribution equipment, direct current/active current inverters, and uninterrupted power supply (UPS) products; and radio frequency and microwave filters, diplexers, multiplexers, detectors, switch filters, integrated assemblies, and detector logarithmic video amplifiers, as well as provides commercial loans. In addition, it manufactures specialized electronic systems for the military market; and offers AC-DC power supplies, DC-DC converters, and displays and EMC filters, as well as distributes value added power supply solutions, UPS systems, fans, filters, line cords, and other power-related components. Further, the company also operates data centers, and provides digital marketing services. It sells its products directly through its sales force, as well as through independent manufacturer representatives and distributors. The company was formerly known as DPW Holdings, Inc. and changed its name to Ault Global Holdings Inc. in January 2021. Ault Global Holdings Inc. was incorporated in 1969 and is headquartered in Las Vegas, Nevada.

  Historical performance

  Stock information

  • Market capitalization: $131080000
  • PEG ratio: 0
  • Dividend yield: 0%

• Federal Signal Corporation (FSS.US)

  Company summary

  Federal Signal Corporation, together with its subsidiaries, designs, manufactures, and supplies a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers in the United States, Canada, Europe, and internationally. It operates through Environmental Solutions Group, and Safety and Security Systems Group. The Environmental Solutions Group segment offers a range of street sweepers, safe-digging trucks ,sewer cleaners, industrial vacuum loaders, vacuum, and hydro-excavation trucks; road-marking, line-removal and waterblasting equipment, dump truck bodies, trailers, and metal extraction support equipment under the Elgin, Vactor, Guzzler, TRUVAC, Westech, Jetstream, Mark Rite Lines, Ox Bodies, Crysteel, J-Craft, Duraclass, Rugby, Travis, OSW, NTE, WTB, Ground Force, Bucks, and Switch-N-Go brand names. It also offers refuse and recycling collection vehicles, camera systems, ice resurfacing equipment, and snow-removal equipment, as well as safety, and security systems. In addition, this segment engages in the sale of parts, service and repair, equipment rental, and training activities. The Safety and Security Systems Group segment provides systems and products for community alerting, emergency vehicles, first responder interoperable communications, and industrial communications. Its products include vehicle lightbars and sirens, industrial signaling equipment, public warning systems, general alarm systems, and public address systems. This segment sells its products under the Federal Signal, Federal Signal VAMA, and Victor brand names. The company sells its products through wholesaler, distributor, independent manufacturer representative, original equipment manufacturer, and direct sales force, as well as independent foreign distributor. Federal Signal Corporation was founded in 1901 and is headquartered in Oak Brook, Illinois.

  Historical performance

  Stock information

  • Market capitalization: $3228899072
  • P/E ratio: 30.9593
  • PEG ratio: 2.71
  • Dividend yield: 0.0067%

  Get more detailed information and learn how to buy FSS.US stock

• Ferrari (RACE.US)

  Company summary

  Ferrari N.V., through its subsidiaries, designs, engineers, produces, and sells luxury performance sports cars. The company offers sports, GT, and special series cars; limited edition hyper cars; one-off and track cars; and Icona cars. It also provides racing cars, and spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars. In addition, the company licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods; Ferrari World, a theme park in Abu Dhabi, the United Arab Emirates; and Ferrari Land Portaventura, a theme park in Europe. Further, it provides direct or indirect finance and leasing services to retail clients and dealers; manages racetracks, as well as owns and manages two museums in Maranello and Modena, Italy; and develops and sells a line of apparel and accessories through its monobrand stores. As of December 31, 2021, it had a total of 30 retail Ferrari stores, including 14 franchised stores and 16 owned stores. The company also sells its products through a network of 172 authorized dealers operating 191 points of sale worldwide, as well as through its website, store.ferrari.com. Ferrari N.V. was founded in 1947 and is headquartered in Maranello, Italy.

  Historical performance

  Stock information

  • Market capitalization: $46126870528
  • P/E ratio: 45.6585
  • PEG ratio: 2.9947
  • Dividend yield: 0.0057%

  Get more detailed information and learn how to buy RACE.US stock

• Fiat Chrysler Automobiles N-V (FCAU.US)

  Company summary

  As of January 16, 2021, Fiat Chrysler Automobiles N.V. was acquired by Peugeot S.A. Fiat Chrysler Automobiles N.V., together with its subsidiaries, designs, engineers, manufactures, distributes, and sells vehicles, components, and production systems. The company operates through five segments: North America, LATAM, APAC, EMEA, and Maserati. It provides passenger cars, SUV vehicles, trucks, and light commercial vehicles under the Jeep, Ram, Dodge, Chrysler, Fiat, Alfa Romeo, and Abarth brands; and luxury vehicles under the Maserati brand, as well as related service parts and accessories, and service contracts under the Mopar brand. The company also provides cast iron components for engines, gearboxes, transmissions and suspension systems, aluminum cylinder heads, and engine blocks under the Teksid brand; and designs and produces industrial automation systems and related products for the automotive industry under the Comau brand name. In addition, it provides retail and dealer financings, and leasing and rental services; and factoring services. The company sells its products directly, or through distributors and dealers in approximately 130 countries. The company was formerly known as Fiat S.p.A. and changed its name to Fiat Chrysler Automobiles N.V. in October 2014. Fiat Chrysler Automobiles N.V. was founded in 1899 and is based in London, the United Kingdom.

  Historical performance

  Stock information

  • Market capitalization: $30916747264
  • P/E ratio: 6.5675
  • PEG ratio: 1.7657
  • Dividend yield: 0.3014%

• Ford Motor Company (F.US)

  Company summary

  Ford Motor Company designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles worldwide. It operates through three segments: Automotive, Mobility, and Ford Credit. The Automotive segment sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers, as well as through dealerships to commercial fleet customers, daily rental car companies, and governments. The Mobility segment designs and builds mobility services; and provides self-driving systems development services. The Ford Credit segment primarily engages in vehicle-related financing and leasing activities to and through automotive dealers. It provides retail installment sale contracts for new and used vehicles; and direct financing leases for new vehicles to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers. This segment also offers wholesale loans to dealers to finance the purchase of vehicle inventory; and loans to dealers to finance working capital and enhance dealership facilities, purchase dealership real estate, and other dealer vehicle programs. The company has a strategic collaboration with ARB Corporation Limited to develop a suite of aftermarket products for the new Ford Bronco. Ford Motor Company was incorporated in 1903 and is based in Dearborn, Michigan.

  Historical performance

  Stock information

  • Market capitalization: $54316822528
  • P/E ratio: 6.1972
  • PEG ratio: 0.383
  • Dividend yield: 0.0465%

  Get more detailed information and learn how to buy F.US stock

• General Motors Company (GM.US)

  Company summary

  General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts and accessories in North America, the Asia Pacific, the Middle East, Africa, South America, the United States, and China. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling brand names. The company also sells trucks, crossovers, cars, and purpose-built vehicles to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, it offers safety and security services for retail and fleet customers, including automatic crash response, emergency services, roadside assistance, crisis assist, stolen vehicle assistance, and turn-by-turn navigation; and connected services comprising mobile applications for owners to remotely control their vehicles and electric vehicle owners to locate charging stations, on-demand vehicle diagnostics, smart driver, marketplace in-vehicle commerce, in-vehicle voice, voice assistant, navigation and app ecosystem, connected navigation, SiriusXM with 360L, and 4G LTE wireless connectivity, as well as develops and commercializes autonomous vehicle technology. Further, the company provides automotive financing and insurance services; and software-enabled services and subscriptions. General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan.

  Historical performance

  Stock information

  • Market capitalization: $55861923840
  • P/E ratio: 6.9964
  • PEG ratio: 1.0731
  • Dividend yield: 0.0099%

  Get more detailed information and learn how to buy GM.US stock

• Oshkosh Corporation (OSK.US)

  Company summary

  Oshkosh Corporation designs, manufactures, and markets specialty vehicles and vehicle bodies worldwide. The company's Access Equipment segment provides aerial work platforms and telehandlers for use in various construction, industrial, institutional, and general maintenance applications. This segment also offers rental fleet loans and leases, and floor plan and retail financing through third-party funding arrangements; towing and recovery equipment; carriers and wreckers; equipment installation services; and chassis and service parts sales. Its Defense segment provides heavy, medium, and light tactical wheeled vehicles and related services for the department of defense. The company's Fire & Emergency segment offers custom and commercial firefighting vehicles and equipment; and commercial fire apparatus and emergency vehicles, such as pumpers, aerial platform, ladder and tiller trucks, tankers, rescue vehicles, wild land rough terrain response vehicles, mobile command and control centers, bomb squad vehicles, hazardous materials control vehicles, and other emergency response vehicles. This segment also provides aircraft rescue and firefighting, snow removal, and broadcast vehicles, as well as command trucks, and military simulator shelters and trailers. Its Commercial segment offers front-and rear-discharge concrete mixers for the concrete ready-mix industry; refuse collection vehicles and related components to commercial and municipal waste haulers; and field service vehicles and truck-mounted cranes for the construction, equipment dealer, building supply, utility, tire service, railroad, and mining industries. Oshkosh Corporation provides its products through direct sales representatives, dealers, and distributors. The company was formerly known as Oshkosh Truck Corporation and changed its name to Oshkosh Corporation in February 2008. Oshkosh Corporation was founded in 1917 and is headquartered in Oshkosh, Wisconsin.

  Historical performance

  Stock information

  • Market capitalization: $6815995904
  • P/E ratio: 17.6362
  • PEG ratio: 6.5374
  • Dividend yield: 0.0145%

  Get more detailed information and learn how to buy OSK.US stock

• PACCAR (PCAR.US)

  Company summary

  PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.

  Historical performance

  Stock information

  • Market capitalization: $38014517248
  • P/E ratio: 12.6663
  • PEG ratio: 1.4058
  • Dividend yield: 0.009%

  Get more detailed information and learn how to buy PCAR.US stock

• Tesla (TSLA.US)

  Company summary

  Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits. It provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; and purchase financing and leasing services. This segment is also involved in the provision of non-warranty after-sales vehicle services, sale of used vehicles, retail merchandise, and vehicle insurance, as well as sale of products to third party customers; services for electric vehicles through its company-owned service locations, and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners. This segment also offers service and repairs to its energy product customers, including under warranty; and various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.

  Historical performance

  Stock information

  • Market capitalization: $526270627840
  • P/E ratio: 55.0033
  • PEG ratio: 1.2812
  • Dividend yield: 0%

  Get more detailed information and learn how to buy TSLA.US stock

• Toyota Motor Corporation ADR (TM.US)

  Company summary

  Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories. It operates in Automotive, Financial Services, and All Other segments. The company offers hybrid cars under the Prius name, fuel cell vehicles under the MIRAI name; and conventional engine vehicles, including subcompact and compact cars under the Corolla and Raize names. It also provides mini-vehicles, passenger vehicles, commercial vehicles, and auto parts under the Toyota name; mid-size cars; luxury cars; sports cars under the GR Yaris, Corolla Sport, Corolla Cross, and Supra names; and recreational and sport-utility vehicles under the Highlander name. In addition, the company offers pickup trucks under the Tacoma name; minivans; and trucks and buses. Further, it provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards; and designs, manufactures, and sells prefabricated housing. Additionally, the company operates GAZOO.com, a web portal for automobile information. It operates in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. The company was founded in 1933 and is headquartered in Toyota, Japan.

  Historical performance

  Stock information

  • Market capitalization: $199041679360
  • P/E ratio: 10.4423
  • PEG ratio: 3.7251
  • Dividend yield: 0.0269%

  Get more detailed information and learn how to buy TM.US stock

• Volkswagen AG Pref 1/10 ADR (VWAPY.US)

  Company summary

  Volkswagen AG manufactures and sells automobiles primarily in Europe, North America, South America, and the Asia-Pacific. The company operates in four segments: Passenger Cars and Light Commercial Vehicles, Commercial Vehicles, Power Engineering, and Financial Services. The Passenger Cars and Light Commercial Vehicles segment develops vehicles, engines, and vehicle software; and light commercial vehicles; and produces and sells passenger cars and related parts. The Commercial Vehicles segment develops, produces, and sells trucks and buses; and offers parts and related services. The Power Engineering segment offers large-bore diesel engines, turbomachinery, and propulsion components. The Financial Services segment provides dealer and customer financing, leasing, banking and insurance, fleet management, and mobility services. The company also offers motorcycles. It provides its products under the Volkswagen Passenger Cars, Audi, "KODA, SEAT, Bentley, Porsche, Volkswagen Commercial Vehicles, Scania, MAN, Lamborghini, Ducati, and Bugatti brands. Volkswagen AG was founded in 1937 and is based in Wolfsburg, Germany. Volkswagen AG operates as a subsidiary of Porsche Automobil Holding SE.

  Historical performance

  Stock information

  • Market capitalization: $82967552000
  • P/E ratio: 4.027
  • PEG ratio: 3.2888
  • Dividend yield: 0.0584%

  Get more detailed information and learn how to buy VWAPY.US stock

What ETFs track the automotive category?

These three major automotive ETFs offer different levels of exposure to domestic and international stocks, as well as traditional, hybrid and electric automakers.

• First Trust NASDAQ Global Auto Index Fund (CARZ)
• Global X Autonomous & Electric Vehicles ETF (DRIV)
• KraneShares Electric Vehicles & Future Mobility ETF (KARS)

Why invest in car stocks?

Despite inconsistent demand and the negative impact of the global pandemic, analysts have begun to speculate that the global automobile market will recover, according to a report from S&P Global.
The report projects that China will be quickest to regain its momentum, potentially resuming its positive growth trends by the end of 2022. Other countries are also expected to recover but not within the next two years.
Pandemic aside, the industry is also in the middle of a historical transition from vehicles that rely on diesel and gasoline to electric and autonomous vehicles. Electric vehicle sales have been steadily climbing since 2013, averaging a sizable 25% growth rate year over year.
This transition offers an opportunity for investors to back an emerging market trend with significant growth potential.

Risks of investing in cars

An investment in car stocks is potentially lucrative but far from foolproof — considering US vehicle sales have a history of inconsistent demand and the coronavirus pandemic has tipped the industry’s manufacturing on its head.
Auto demand as a result of the COVID-19 pandemic is expected to drop in North America by 3.8 million vehicles, according to Statista. China is set for a 1.8 million drop and Europe is expected to sell 4.2 million fewer vehicles than it did in 2019. All told, global automobile sales are forecasted to fall below 62 million units in 2020 — a significant dip from 2017’s global sales of 80 million vehicles.
While the COVID-19 pandemic won’t last forever, it illustrates that this industry isn’t immune to market-impacting events.

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Bottom line

The COVID-19 pandemic has had a negative impact on car stocks, but forecasts for the coming years are optimistic. And as the electric and hybrid vehicle market continues to grow, so too do stock options for investing in this industry.
Before you purchase car stocks, review your trading platform options to find the account that fits your budget and trading strategy.

Frequently asked questions

Do car stocks pay dividends?
Yes. Some that do include Federal Signal Corporation, General Motors and Toyota.
Can I buy penny stocks from car companies?
Yes. Some penny stocks in this category include DPW Holdings and CPS Technologies.