The success of electric-vehicle makers like Tesla and Nio is spreading bullishness across the entire automotive sector.
The DJ Automobile Manufacturers Index ($DJUSAU) has gained 88 percent in the last three months. That’s the biggest gain of more than 150 industry indexes on the TradeStation platform. The Auto Part Index ($DJUSAP) was the second-best performer, up 78 percent. In contrast, the broader S&P 500 has risen 12 percent in the same period.
While TSLA and NIO have attracted the most attention, a lot more is going on. Here are some of the key trends:
Another company in the group has also flown higher with very little fanfare: Tata Motors (TTM) has more than doubled on strong sales and rumors it may strike a deal with TSLA. Despite being an Indian company, TTM owns brands like Jaguar and Land Rover.
Here are some of the big movers in the auto space lately:
|TTM||Tata Motors||Auto manufacturing||+123%|
|GM||General Motors||Auto manufacturing||+55%|
|F||Ford Motor||Auto manufacturing||+45%|
|AXL||American Axle||Auto parts||+40%|
This article was written by David Russell, TradeStation Securities, Inc., part of the Monex Group Inc, published on 22/01/2021.
David Russell is VP of Market Intelligence at TradeStation Group. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.
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