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The 7 Best Auto Stocks to Buy in June

An angled side view of a row of parked cars.
  • Before they kick back into high gear, consider these seven auto stocks for your investment portfolio.
  • Fordf): Once the issues disappear in the near term, Ford’s electric vehicle (EV) rollout could see the speed pick up again.
  • FiskerFSR): Although considered an underdog, this EV game has a good chance of success.
  • Lucid MotorsLCID): Crowned the winner too early, but still a top contender among electric vehicle manufacturers.
  • Li AutoLI): This Chinese EV maker is likely to recover if the problems go away.
  • Ferraribreed): A car stock in a league of its own, and one to consider at current prices.
  • TeslaTSLA): Market and Musk-related volatility is a sign of opportunity, not a sign of staying away.
  • XPengXPEV): Similar to Li Motors, a China-based EV maker with solid rebound potential.
An oblique side view of a row of parked cars.

Source: lumen-digital / Shutterstock.com

The automotive revolution is still in motion. For now, however, it is taking a pit stop. At least, that’s the conclusion of the recent performance of auto stocks.

Why is this? Like many industries, fears of inflation and recession have put pressure on autoplays across the board. And industry challenges, such as the supply chain crisis, have also had an impact.

This includes both pure EV games and established car manufacturers. In some cases, a price decrease was justified. As the excitement over the rise of EVs kicked into high gear, many names with poor fundamentals moved into unsustainable valuations. Those, in turn, are names that you can leave in the lot.

But in the case of these seven auto stocks, the market may have gone too far to put on the brakes and send them to lower prices. Now significantly below their respective highs, it may be time to grab the chance to buy these seven auto stocks.

ticker Company Price
f Ford $13.16
FSR Fisker $10.36
LCID Lucid Motors $19.15
LI Li Auto $24.14
breed Ferrari $197.55
TSLA Tesla $709.45
XPEV XPeng $21.94

Car stocks to buy: Ford (F)

A Ford (F) sign hangs on a glass wall in Kiev, Ukraine.A Ford (F) sign hangs on a glass wall in Kiev, Ukraine.

Source: Vitaliy Karimov / Shutterstock.com

A few years ago, the consensus was that companies that would only make EVs would leave the “old school” Detroit automakers, such as Ford (NYSE:f) in the dust. Beginning in 2021, however, investors began to embrace the prospect of existing automakers not only surviving the EV revolution, but actively participating in it.

Last year, and until early this year, the legendary automaker’s major pivot in EVs shocked the F stock price. Stocks hit levels not seen in over 20 years. Unfortunately, it’s taken a big hit since January due to both the cooling off in EV games, and the headwinds of the company’s chip shortage.

However, don’t take this as a sign that Ford investors will have to wait another 20 years for the stock to crack $20 a share again. Once it overcomes these headwinds and continues to ramp up EV production, the stock could see a strong recovery.

This stock deserves a “B” rating in my Portfolio Reviewer

Fisker (FSR)

The Fisker logo hangs at the November 2011 International Auto Show.The Fisker logo hangs at the November 2011 International Auto Show.

Source: Eric Broder Van Dyke / Shutterstock.com

Among the EV and auto stocks, there are plenty of underdogs. Many of these names simply lack what it takes to live up to expectations. However, that is not the case here with Fisker (NYSE:FSR† Yes, as one of the smaller EV upstarts, it has its work cut out for it.

In addition, the launch of its flagship Ocean SUV later this year means Fisker is a little behind the eight ball. Many of his colleagues already have their vehicles available for sale. But while FSR stock has had mixed performances since its debut, I wouldn’t say it’s a car stock destined to end up in the junkyard.

In high demand for the Ocean and Fisker’s capital approach to scaling (by partnering with a larger car company for production), the company cannot quickly get out of the pre-revenue phase on its own. It could also become profitable much sooner.

This stock deserves a “B” rating in my Portfolio Reviewer

Auto Stocks to Buy: Lucid Motors (LCID)

Lucid Motors (LCID) plant in Arizona.Lucid Motors (LCID) plant in Arizona.

Source: Around the World Photos / Shutterstock.com

I think, Lucid Motors (NASDAQ:LCID) was crowned the winner under EV games too soon. There is much to suggest that it will deliver on its promises and become a major producer of luxury EVs. Still, it has had some growing pains and will likely continue to do so.

The supply chain crisis has forced the company to roll back production targets. This, coupled with the pressures mentioned above, has seen LCID stock plummet in price and is currently sliding around $20 a share.

For investors optimistic about the long-time horizon EV trend, this could be a great entry point. Although it faces production difficulties, demand for Lucid’s flagship Air vehicle remains high. The company has even received an order from the Saudi Arabian government that could deliver a total of 100,000 vehicles over the next ten years.

So while it was crowned the winner too soon, Lucid is nonetheless a top contender. So think of it as a top member of the auto stock to buy.

This stock deserves a “B” rating in my Portfolio Reviewer

Li engines (LI)

A front view of the Li Xiang One SUV from Li Auto (LI).A front view of the Li Xiang One SUV from Li Auto (LI).

Source: Carrie Fereday / Shutterstock.com

In addition to the general supply chain crisis, China-based EV makers Li engines (NASDAQ:LI) have faced another problem: China’s latest novel coronavirus lockdowns. As of March, an outbreak of the ommicron variant has led to severe lockdowns for many of China’s major cities.

This has seriously affected the production of electric vehicles, among other things. As a result, Li, like his colleagues, has seen a large sequential (month-on-month) drop in deliveries. In April, deliveries of its Li ONE EV decreased by 62% compared to March

Compared to other Chinese electric EV stocks, LI stock has admittedly not taken such a sharp plunge this year. Nevertheless, these disturbances, along with other concerns, keep it depressed and may continue to do so in the short term. But looking beyond the current headwinds, Li is still an EV growth game well positioned to bounce back.

This stock deserves a “B” rating in my Portfolio Reviewer

Car Stocks to Buy: Ferrari (RACE)

Ferrari logo on a red bannerFerrari logo on a red banner

Source: Shutterstock

After looking at a trio of EV stocks, let’s take a look at one of the established automakers. Although, a more exciting than Ford, General engines (NYSE:GM) or the former parent company of this company, Stellantis (NYSE:STLA† I’m talking about Ferrari (NYSE:breed), and it’s in a league of its own when it comes to auto stocks.

Between high operating margins and a prestigious, exclusive brand that is always in demand, the Italian luxury sports car maker faces fewer of the problems faced by the low-margin, highly cyclical mainstream auto industry. That’s why RACE stocks manage to force a valuation adjustment of its premium status.

Of course, this does not mean that Ferrari shares are sale-proof. In fact, RACE stock is down 24% year-to-date (YTD) due to external factors wreaking havoc on the market. However, there is a silver lining to this. The opportunity to acquire shares in this unique, high-quality company at a fair price.

This stock deserves a “B” rating in my Portfolio Reviewer

Tesla (TSLA)

Tesla (TSLA) badge on back of red Tesla carTesla (TSLA) badge on back of red Tesla car

Source: Hadrian/Shutterstock.com

Take a look at a stock chart and you may think this is the beginning of the end for stocks in Tesla (NASDAQ:TSLA† With a decline of about 33% YTD and a downtrend, you may be concerned that by buying these auto stocks you are trying to catch a falling knife instead of getting a bargain.

However, if you consider the reasons for the recent decline in TSLA stocks, you will realize that the party isn’t quite over yet. Namely, because much if not most of the decline is due to the short-term problems currently affecting other EV stocks. Also, something that has little to do with the underlying performance of the company plays a role.

That would be the drama with Tesla CEO Elon Musk’s latest hustle. Simply put, these factors do not change the growth picture of this leading electric car maker, making current volatility a buying opportunity.

This stock earns an “A” rating in my Portfolio Reviewer

Auto Stocks to Buy: XPeng (XPEV)

Xpeng logo and P7 model in store XPEV stockXpeng logo and P7 model in store XPEV stock

Source: Andy Feng / Shutterstock.com

Similar to Li Auto, XPeng (NYSE:XPEV), another Chinese EV maker, is dealing with the short-term problems caused by the latest lockdowns in China. For example, she also saw a sharp decline in sequential deliveries. but if InvestorPlace’s David Moadel recently argued that the company is doing quite well given the challenges.

While deliveries have fallen 41% sequentially, they are up 75% year-over-year (YOY). To be latest profit results also show its resilience, despite the headwind. And so this strong performance points to it getting back into high-growth mode, when the current issues are over — which they will do.

While still in the red YTD, the high growth prospect more than makes up for it. As it scales up further, the losses will get smaller. And over time, it will likely go from negative to positive earnings. All of this points to a solid chance of recovery and an eventual transition to new all-time highs.

This stock deserves a “B” rating in my Portfolio Reviewer

At the date of publication, Louis Navellier had F shares. Louis Navellier had (directly or indirectly) other positions in the securities mentioned in this article. The InvestorPlace Research Employee primarily responsible for this article had no (direct or indirect) positions in the securities referred to in this article.