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The novel coronavirus pandemic has impacted global automobile sales. As a result, auto stocks have been relatively subdued.
Of course, there are exceptions like Tesla (NASDAQ:TSLA), with the stock having surged by 295% in the current year. Similarly, Nio (NYSE:NIO) has rose by 226% for the year. As a matter of fact, both these companies are pure plays in the electric vehicle segment.
As the pandemic headwind is navigated, global auto sales are likely to be stronger in the coming quarters. It’s expected that the U.S. automobile market will rebound in fiscal year 2021. Moody’s forecasts that global auto sales will increase by 11.5% in 2021. Further, recovery is expected to continue beyond the next year.
With this outlook, it makes sense to consider exposure to quality auto stocks that have remained depressed. At the same time, TSLA stock and NIO stock are worth considering on corrections.
This column will discuss three auto stocks that can potentially accelerate in the coming quarters.