Between Donald Trump and Elon Musk, car stocks have rarely been far from the news this year. In March, Trump announced 25% tariffs on cars made outside the US, to kick in from April. South Korea and Japan are respectively the second- and third-biggest suppliers of cars to the US market (after Mexico), with Germany coming in fifth. So not surprisingly, stocks including Toyota, Honda, Nissan, Mazda, Subaru, Mitsubishi and BMW all dipped. Trump has previously called out the EU specifically on the matter: '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.'
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 Apr. '25) |
5-year performance (to Apr. '25) |
Link |
|---|---|---|---|---|
| Aston Martin Lagonda (AML) |  |
-60.93% | -95.17% | More info |
| Bayerische Motoren Werke Aktiengesellschaft (BMW) |  |
-39.40% | 29.21% | More info |
| Ferrari NV (RACE) |  |
4.43% | 175.15% | More info |
| Ford Motor Company (F) |  |
-26.01% | 76.37% | More info |
| General Motors Company (GM) |  |
1.28% | 89.86% | More info |
| Hyundai Motor (005380) |  |
-25.42% | 77.50% | More info |
| Honda Motor Co Ltd ADR (HMC) |  |
-23.49% | 25.32% | More info |
| Li Auto Inc (LI) |  |
-20.96% | -10.76% (3 years – 2020 IPO) | More info |
| Mercedes-Benz Group AG (MBG) |  |
-36.06% | 92.84% | More info |
| Nio (NIO) |  |
-14.36% | 18.52% | More info |
| Nikola Corp (NKLA) |  |
-99.45% | -99.97% | More info |
| Polestar Automotive (PSNY) |  |
-31.45% | -91.61% (3 years) | More info |
| Porsche AG (P911) |  |
-53.04% | -63.33% (2 years) | More info |
| Renault SA (RNO) |  |
-14.83% | 137.08% | More info |
| Rivian Automotive (RIVN) |  |
25.63% | -71.74% (3 years – 2021 IPO) | More info |
| Rolls-Royce Holdings PLC (RR) |  |
71.44% | 502.61% | More info |
| Stellantis NV (STLA) |  |
-65.81% | 6.23% | More info |
| Tata Motors Limited (TATAMOTORS) |  |
-41.66% | 698.72% | More info |
| Tesla (TSLA) |  |
47.51% | 481.40% | More info |
| Toyota Motor (TM) |  |
-30.27% | 35.93% | More info |
| Volkswagen AG (VWAPY) |  |
-25.55% | -26.71% | More info |
| Volvo AB ADR (VLVLY) |  |
-3.11% | 99.76% | More info |
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.
Some of the stocks listed above are parent corporations with a few brands in their fold.
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:
If you're interested in investing in this industry, take a closer look at what companies in this industry do and how the stocks have historically performed. Keep in mind that positive past performance doesn't guarantee that a stock will continue to rise in the future.
Aston Martin Lagonda Global Holdings plc engages in the design, development, manufacture, and marketing of luxury sports cars in the United Kingdom, the Americas, the Middle East, Africa, rest of Europe, and the Asia Pacific. The company also engages in the sale of parts; sale of vehicles; servicing and restoration of vehicles; and brand licensing and motorsport activities. It sells its vehicles through a network of dealers. Aston Martin Lagonda Global Holdings plc was founded in 1913 and is headquartered in Gaydon, the United Kingdom.
Aston Martin Lagonda Global is listed on the London Stock Exchange (LSE), has a trailing 12-month revenue of around 1.6 billion and employs 3,006 staff.
Capital at risk
Bayerische Motoren Werke Aktiengesellschaft develops, manufactures, and sells automobiles and motorcycles, spare parts, and accessories worldwide. It operates through Automotive, Motorcycles, and Financial Services segments. The company offers automobiles under the BMW, MINI, and Rolls-Royce brands. It also develops, manufactures, and sells motorcycles and scooters in the sport, tour, roadster, heritage, adventure, and urban mobility categories, as well as motorcycles for private use and special-purpose vehicles for operational use under the BMW Motorrad brand.
Bayerische Motoren Werke Aktiengesellschaft is listed on the XETRA, has a trailing 12-month revenue of around £142.4 billion and employs 159,104 staff.
Capital at risk
Ferrari N. V. , through its subsidiaries, engages in design, engineering, production, and sale of luxury performance sports cars worldwide. The company offers sports, track, one-off, and road cars, as well as supercars. It also provides spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars; and licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods. In addition, the company operates Ferrari museums in Modena and Maranello; Il Cavallino restaurant in Maranello; and theme parks in Abu Dhabi and Spain.
Ferrari is listed on the NYSE, has a trailing 12-month revenue of around €6.7 billion and employs 5,435 staff.
Capital at risk
Ford Motor Company develops, delivers, and services Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles worldwide. It operates through Ford Blue, Ford Model e, Ford Pro, and Ford Credit segments. The company sells Ford and Lincoln internal combustion engine and hybrid vehicles, electric vehicles, service parts, accessories, and digital services for retail customers, as well as develops software. It also 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.
Ford Motor Company is listed on the NYSE, has a trailing 12-month revenue of around $185 billion and employs 171,000 staff.
Capital at risk
General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide. 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, Baojun, and Wuling brand names. In addition, the company sells trucks, crossovers, cars, and automobile parts through retail dealers, distributors and dealers, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments.
General Motors Company is listed on the NYSE, has a trailing 12-month revenue of around $187.4 billion and employs 162,000 staff.
Capital at risk
Hyundai Motor Company, together with its subsidiaries, manufactures and distributes motor vehicles and parts worldwide. The company operates through Vehicle, Finance, and Others segments. It offers cars under the ELANTRA, SONATA, AZERA, i30, ACCENT, i20, and i10 names; eco vehicles under the IONIQ 9, INSTER, IONIQ 5, IONIQ 6, KONA Electric, NEXO, TUCSON Hybrid, SANTA FE Hybrid, SONATA Hybrid, AZERA Hybrid, i30 Hybrid, and STARIA Hybrid names; SUVs under the TUCSON, SANTA FE, KONA, PALISADE, CRETA, and VENUE names; and MPVs under the STARIA name; and commercial vehicles under the STARIA, H-1, and H-100 names, as well as N series and N Line series vehicles under various names.
Hyundai Motor is listed on the KO and has a trailing 12-month revenue of around $175.2 trillion.
Capital at risk
Honda Motor Co. , Ltd. develops, manufactures, and distributes motorcycles, automobiles, power, and other products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides.
Honda Motor Co Ltd ADR is listed on the NYSE, has a trailing 12-month revenue of around ₩21.8 trillion and employs 194,993 staff.
Capital at risk
Li Auto Inc. operates in the energy vehicle market in the People's Republic of China. It designs, develops, manufactures, and sells premium smart electric vehicles. The company's product line comprises MPVs and sport utility vehicles. It offers sales and after sales management, and technology development and corporate management services, as well as purchases manufacturing equipment. The company offers its products through online and offline channels.
Li Auto Inc is listed on the NASDAQ, has a trailing 12-month revenue of around $144.5 billion and employs 32,248 staff.
Capital at risk
Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. It operates through Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility segments. The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class brands, as well as related spare parts and accessories. It also provides financing, leasing, vehicle subscription and rental, fleet management, insurance brokerage, and mobility services, as well as digital services for charging and payment.
Mercedes-Benz Group is listed on the XETRA, has a trailing 12-month revenue of around $145.6 billion and employs 163,132 staff.
Capital at risk
NIO Inc. designs, develops, manufactures, and sells smart electric vehicles in China. It offers five and six-seater electric SUVs, as well as smart electric sedans. The company also offers power solutions, including Power Home, a home charging solution; Power Swap, a battery swapping service; Power Charger and Destination Charger; Power Mobile, a mobile charging service through charging vans; Power Map, an application that provides access to a network of public chargers and their real-time information; and One Click for Power valet service.
Nio Inc Class A ADR is listed on the NYSE and has a trailing 12-month revenue of around €65.7 billion.
Capital at risk
Nikola Corporation operates as a technology innovator and integrator that develops energy and transportation solutions in the United States and internationally. The company operates in truck and energy units. It commercializes battery electric vehicles (BEV) and hydrogen fuel cell electric vehicles (FCEV) to the trucking sector. In addition, it develops a network of hydrogen fueling stations; and offers BEV charging solutions for its FCEV and BEV customers, as well as other third-party customers.
Nikola Corp is listed on the NASDAQ, has a trailing 12-month revenue of around $75.5 million and employs 870 staff.
Capital at risk
Polestar Automotive Holding UK PLC manufactures and sells premium electric vehicles. The company was founded in 2017 and is headquartered in Gothenburg, Sweden.
Polestar Automotive Holding UK PLC Class A ADS is listed on the NASDAQ, has a trailing 12-month revenue of around $2 billion and employs 2,515 staff.
Capital at risk
Dr. Ing. Porsche AG engages in automotive and financial services business in Germany, Europe, North America, China, and internationally. The company engages in the development, manufacturing, and sale of vehicles, as well as provision of related services.
Porsche is listed on the XETRA, has a trailing 12-month revenue of around $40.1 billion and employs 39,463 staff.
Capital at risk
Renault SA engages in the design, manufacture, sale, repair, maintenance, and leasing of motor vehicles in Europe, Eurasia, Africa, the Middle East, the Asia Pacific, and the Americas. It also engages in the design and production of parts and equipment used for manufacturing and operation vehicles. The company operates through Automotive, Sale Financing, and Mobility Services segments. Its Automotive segment produces, sells, and distributes passenger cars and light commercial vehicles; and invests in automotive-sector associates and joint ventures primarily in Nissan.
Renault is listed on the Euronext Paris (PA), has a trailing 12-month revenue of around €56.2 billion and employs 98,636 staff.
Capital at risk
Rivian Automotive, Inc. , together with its subsidiaries, designs, develops, manufactures, and sells electric vehicles and accessories. The company offers consumer vehicles, including a two-row, five-passenger pickup truck under the R1T brand, a three-row, seven-passenger sport utility vehicle under the R1S name. It provides software and services, such as remarketing, vehicle repair and maintenance services, and vehicle electrical architecture and software development services.
Rivian Automotive is listed on the NASDAQ, has a trailing 12-month revenue of around €5 billion and employs 14,861 staff.
Capital at risk
Rolls-Royce Holdings plc develops and delivers mission-critical power systems in the United Kingdom and internationally. The company operates through four segments: Civil Aerospace, Defence, Power Systems, and New Markets. The Civil Aerospace segment develops, manufactures, markets, and sells aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as provides aftermarket services. The Defence segment is involved in the development, manufacture, marketing, and sale of military aero engines, naval engines, and submarine nuclear power plants, as well as offers aftermarket services.
Rolls-Royce is listed on the London Stock Exchange (LSE), has a trailing 12-month revenue of around $18.9 billion and employs 42,400 staff.
Capital at risk
Stellantis N. V. engages in the design, engineering, manufacturing, distribution, and sale of automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems worldwide. It provides luxury and premium vehicles; global sport utility vehicles; American and European brand vehicles, as well as parts and accessories; contracts; retail and dealer financing; and leasing and rental services.
Stellantis is listed on the NYSE, has a trailing 12-month revenue of around £156.9 billion and employs 248,243 staff.
Capital at risk
Tata Motors Limited designs, develops, manufactures, and sells various automotive vehicles. The company offers passenger cars; sports utility vehicles; intermediate and light commercial vehicles; small, medium, and heavy commercial vehicles; defense vehicles; pickups, wingers, buses, vans, and trucks; and electric vehicles, as well as related spare parts and accessories. It also manufactures engines for industrial applications, and aggregates comprising axles and transmissions for commercial vehicles; and factory automation equipment, as well as provides information technology and vehicle financing services.
Tata Motors is listed on the NSE, has a trailing 12-month revenue of around $4.4 trillion and employs 91,496 staff.
Capital at risk
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.
Tesla is listed on the NASDAQ, has a trailing 12-month revenue of around INR97.7 billion and employs 125,665 staff.
Capital at risk
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.
Toyota Motor Corporation ADR is listed on the NYSE, has a trailing 12-month revenue of around $46.7 trillion and employs 384,338 staff.
Capital at risk
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.
Volkswagen AG Pref 1/10 ADR is listed on the PINK, has a trailing 12-month revenue of around $324.7 billion and employs 679,472 staff.
Capital at risk
AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, the United States, Asia, Africa, and Oceania. The company provides heavy-duty trucks for long-haulage and construction work and light-duty trucks for distribution purposes under the Volvo, Renault Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and chassis under the Prevost and Volvo Bus brands.
Volvo AB ADR is listed on the PINK, has a trailing 12-month revenue of around $526.8 billion and employs 89,680 staff.
Capital at risk
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. Who knows… hydrogen fuel-cell vehicles could change everything! 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.
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.
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% |
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