Despite macroeconomic concerns, auto sales are expected to increase due to pent-up demand and technological advancements. Therefore, it could be wise for investors to buy fundamentally sound auto stock Volkswagen AG (VWAGY – Get Rating) now. However, I think NIO Inc. (NIO – Get Rating) could be best avoided, given its weak financials.
In October, new vehicle sales in the United States hit 1,211,141 units, up 2% year-on-year, thanks to surging demand for electric vehicles (EVs) and the economic recovery.
According to Atlas Public Policy, electric vehicle sales in the United States are likely to reach a record 9% of all passenger vehicles in 2023. This will be an increase from 7.3% of new car sales in 2022. Government incentives and policies encouraging the use of electric vehicles have played an important part in pushing this growing trend.
The North American automotive market is estimated to be valued at $1.22 trillion by 2028, growing at a 5.4% CAGR. The market is expected to be influenced by rising electric mobility, government support, and consumer preference for safety and comfort features enabled by ADAS technologies.
However, the automotive industry is facing constant disruption due to the supply chain issues, reduced volumes, and rising interest rates. The shift towards electric vehicles and autonomous driving technology has…
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