All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Car stocks found themselves in the news recently, when Donald Trump imposed tariffs on imports from Canada and Mexico (later postponed), and threatened the same for imports from the EU. Trump specifically called out the the automitive industry, saying of the EU: 'They don't take our cars, they don't take our farm products, they take almost nothing and we take everything from them. Millions of cars, tremendous amounts of food and farm products.' As a result, European carmaker stocks took a bit of a dent.
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. Here’s how you can get involved.
Car stock | Icon | 1-year performance (to Feb. '25) | 5-year performance (to Feb. '25) | Link |
---|---|---|---|---|
Aston Martin Lagonda (AML) | ![]() |
-37.03% | -90.14% | Invest Capital at risk |
Bayerische Motoren Werke Aktiengesellschaft (BMW) | ![]() |
-20.48% | 52.64% | Invest Capital at risk |
Ferrari NV (RACE) | ![]() |
14.45% | 165.46% | Invest Capital at risk |
Ford Motor Company (F) | ![]() |
-22.03% | 37.63% | Invest Capital at risk |
General Motors Company (GM) | ![]() |
24.18% | 38.65% | Invest Invest Capital at risk |
Hyundai Motor (005380) | ![]() |
-14.95% | 72.48% | Invest Capital at risk |
Li Auto Inc (LI) | ![]() |
-14.13% | -6.29% (3 years – 2020 IPO) | Invest Capital at risk |
Mercedes-Benz Group AG (MBG) | ![]() |
-11.35% | 61.16% | Invest Capital at risk |
Nio (NIO) | ![]() |
-28.50% | 4.18% | Invest Capital at risk |
Nikola Corp (NKLA) | ![]() |
-30.36% | -95.17% | Invest Capital at risk |
Polestar Automotive (PSNY) | ![]() |
-36.63% | -90.31% (3 years) | Invest Capital at risk |
Porsche AG (P911) | ![]() |
-28.57% | -49.03% (2 years) | Invest Capital at risk |
Renault SA (RNO) | ![]() |
36.43% | 47.89% | Invest Capital at risk |
Rivian Automotive (RIVN) | ![]() |
-25.18% | -78.79% (3 years – 2021 IPO) | Invest Capital at risk |
Rolls-Royce Holdings PLC (RR) | ![]() |
89.50% | 169.11% | Invest Capital at risk |
Stellantis NV (STLA) | ![]() |
-43.36% | 40.27% | Invest Capital at risk |
Tata Motors Limited (TATAMOTORS) | ![]() |
-22.58% | 315.62% | Invest Capital at risk |
Tesla (TSLA) | ![]() |
86.82% | 606.94% | Invest Capital at risk |
Toyota Motor (TM) | ![]() |
-15.90% | 48.53% | Invest Capital at risk |
Volkswagen AG (VWAPY) | ![]() |
-24.24% | -46.98% | Invest Capital at risk |
Wait… I don’t see the brand I’m looking for
Some of the stocks listed above are parent corporations with a few brands in their fold.
How to invest in car stocks
- Open a sharing-dealing account. The first step before investing in car stocks is to open a share trading account. Choose a platform that suits your needs, whether it’s one with in-depth research tools, low fees or a simple interface. Our picks are below.
- Fund your account. Once your account is set up, deposit funds. You can do that via a bank transfer, debit card or any other means allowed by your platform.
- Research and choose car stocks. Research the best car stocks for your portfolio, and then search for them by company name or ticker symbol.
- Place your trade!. Once you’ve found the car stock, select the amount you want to invest and create an order to buy shares. And just like that, you’re now officially an investor in the car industry. *Blinks back tears* …they grow up so fast!

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UK car stocks
Most carmakers have relatively thin profit margins, but have been considered a reliable investment for decades. Car and auto stocks are considered to be cyclical stocks, which means they generally rise and fall as consumer confidence changes.
When the economy is doing well, people are more likely to buy new vehicles, which can have a positive impact on auto share prices. When the economy is doing poorly, people are unlikely to buy new cars, and auto stocks may suffer as a result.
The rise of electric and hybrid vehicles has also had a huge impact on car stocks, with companies like Tesla (TSLA) reaching huge valuations due to investor confidence in the future of electric cars. Most of the world’s largest car manufacturers now produce electric vehicles, and this is likely to have a significant impact on the price of car stocks in future.
The UK has a proud automotive tradition, and there are a number of popular UK car stocks that are listed on the London Stock Exchange, including:
Investing in global car stocks from the UK

Volkswagen (VWAPY.US)
The celebrated German vehicle manufacturer might be best known for its iconic Beetle, Combi and Golf models, but it’s now set its sights on Tesla’s EV crown. The company is emerging from a difficult chapter in its evolution after the lengthy emissions scandal which dragged on for several years. Read our full guide to buying Volkswagen shares.

Tesla (TSLA)
Tesla is a multinational automotive and energy company, specialising in electric vehicles, energy storage and solar panels. The company is on a mission to “accelerate the world’s transition to sustainable energy”. Tesla’s fortunes have at times been tied to the very public activities of its CEO (or perhaps that should be “Technoking”), Elon musk. For more information on buying shares in Tesla, you can check out our specialised guide to Tesla shares.

Toyota (TM)
The Japanese car maker, which also owns the upmarket Lexus brand, has been a pioneer in the hybrid space thanks to its hugely successful Prius models. It also aims to lead the way on hydrogen fuel-cell vehicles. In 2021, the brands Toyota, Hino, and Isuzu formed a strategic partnership to develop fuel cell and electric trucks. Read our guide to buying shares in Toyota to find out how you can invest.
Why invest in car stocks?
The industry is in the middle of a period of flux, transitioning from vehicles that rely on petrochemicals and humans to electric and potentially autonomous vehicles. Electric vehicle sales have been steadily climbing since 2013, averaging a sizeable 25% growth rate year over year.
Some brands are proving better at adapting than others, and new players are entering the fray as the tech evolves. So it’s realistic to expect that we’re going to see winners and losers, and that means the opportunity for canny investors to speculate.
Bottom line
We’re likely to depend on cars for the foreseeable future, but they’re changing fast. As well as pioneering and/or resilient manufacturers, speculators are finding opportunities for equity growth in linked “nuts and bolts” stocks, like battery or chip makers. As the landscape changes, we may see the survival of the fastest-to-adapt.
As ever, a diverse portfolio is usually safest, and putting all your money into car stocks could be a risky game.
Finder poll: Out of the following car brands, which is your favourite?
Why these brands? We took the 8 largest publicly-traded car stocks by market cap at the start of 2024, where the stock is a brand rather than an unheard-of parent corporation. We excluded Ferrari beacuse, well, it's Ferrari.
Response | % of respondents |
---|---|
Volvo | 10.42% |
Volkswagen | 8.33% |
Toyota | 14.58% |
Tesla | 18.75% |
Mercedes | 14.58% |
Honda | 0.00% |
Ford | 20.83% |
BMW | 12.50% |
Browse all car stock guides
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