3 Top Auto Stocks for Tech Investors to Buy Today

The auto-tech growth thesis is switching up a gear. Discover top stocks like Magna International (TSX:MG)(NYSE:MGA) today.

| More on:
Car, EV, electric vehicle

Image source: Getty Images

Auto-tech is revving up to become one of the major trends of the decade. As the name suggests, this theme weaves elements of auto investing with the tech sector. Zeroing in on the electric vehicle (EV) market, investors can tap a widening range of blue-chip auto manufacturers for growth potential. From hyped-up beasts to burgeoning tickers, here are three of the best stocks to buy for exposure to auto-tech upside.

Accelerate portfolio growth with auto stocks

There’s no need to reinvent the wheel when it comes to auto-tech investing. Tesla (NASDAQ:TSLA) is the first idea that springs to mind when perusing the available EV tickers. Aside from the fact that the company is fronted by the world’s richest man, Tesla is also an upside machine, up 630% in 12 months.

Tesla could be due for a pullback, though. That makes this a watch-and-wait option for EV contrarians. This gloomy prognosis is based on more than simple overvaluation. From overcrowding of the EV space to a general ramping up of commodities prices, events could conspire to erode Tesla’s lead.

Closer to home, Magna International has proven a durable workhorse of the TSX. For Canadian investors seeking green economy stocks, Magna packs a punch way above its weight, gaining 31% in the last three months. From a healthy balance sheet to 40% upside potential — plus a 2% dividend yield — Magna could turbo-boost an otherwise pedestrian stock portfolio. Supplying a range of international EV markets, Magna is a play for diversified auto-tech exposure.

That new car (stock) smell…

Continuing the international theme, and bringing access to a range of auto theses, Stellantis (NYSE:STLA) is a brand-new, U.S.-traded pick. The Netherlands-based auto multinational was recently formed by the merger of Groupe PSA and Fiat Chrysler Automobiles. One neat bonus is that the 50-50 merger brings investors automatic exposure to top-tier French and Italian-American automakers.

There is one small issue with Stelantis. This stock is newly minted, and — rather confusingly — its ticker is an anagram of another, perhaps better known, auto stock. Punch “STLA stock” into your search engine of choice, therefore, and you might find that your results are auto-corrected to “Tesla.” No big deal, perhaps, since Stellantis is likely to generate enough momentum to carve out a name for itself on the growth stock circuit.

Only marginally older than the new year itself, this stock is fresh off the production line. As such, investors should look to its component companies’ data when doing their homework. Nevertheless, would-be shareholders should be buoyed by Stellantis’s mandate to pump out 39 EVs by the end of 2021. It looks to be an achievable goal, with a brand portfolio that encompasses such luminaries as Jeep, Chrysler, Citroën, and Maserati.

In summary, investors have some high-quality names to choose from for exposure to the auto-tech trend. By combing through share price data and market fundamentals, investors can weigh up consensus targets and settle on their own buy signals. However, Tesla, Magna, and Stellantis are attractive stocks in pole position for long-distance wealth generation.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Victoria Hetherington has no position in any of the stocks mentioned. David Gardner owns shares of Tesla. Tom Gardner owns shares of Tesla. The Motley Fool owns shares of and recommends Tesla. The Motley Fool recommends Magna Int’l.

More on Tech Stocks

grow dividends
Tech Stocks

Why Nuvei Stock Jumped 26% on Monday

Nuvei (TSX:NVEI) stock saw shares surge today as the company confirmed it's in talks to go private through a buyout.

Read more »

Happy diverse people together in the park
Tech Stocks

A Once-in-a-Generation Investment Opportunity: Artificial Intelligence (AI) Growth Stocks

Canadian tech companies like Kinaxis (TSX:KXS) are doing big things in AI.

Read more »

Paper airplanes flying on blue sky with form of growing graph
Dividend Stocks

2 Soaring Stocks I’d Buy Now With No Hesitation

These two stocks may be the most expensive on the market, but they're high for a reason! And I'm still…

Read more »

Man making notes on graphs and charts
Tech Stocks

1 Stock I’d Drop From the “Magnificent Seven” and 1 I’d Add

The "Magnificent Seven" is becoming a bit less magnificent but could rebound if we cut this stock and added another…

Read more »

Business success with growing, rising charts and businessman in background
Dividend Stocks

Don’t Look Now, But These 3 TSX Stocks Look Poised for a Nice Rally 

Three TSX stocks are in a downtrend amid headwinds. 2024 may be rocky for them, but they are poised for…

Read more »

potted green plant grows up in arrow shape
Tech Stocks

Missed Out on Nvidia? My Best Growth Stock to Buy and Hold

Are you interested in growth stocks? Here’s my best pick to buy and hold!

Read more »

falling red arrow and lifting
Tech Stocks

Is Shopify a Buy, Sell, or Hold?

Shopify (TSX:SHOP) stock has been pulling back of late, opening up a window for dip buyers.

Read more »

Different industries to invest in
Tech Stocks

2 No-Brainer Growth Stocks to Buy Now With $2,000 and Hold Long Term

These growth stocks have already proven their worth this year, but are solid investments for long-term holders as well.

Read more »