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3 Auto Manufacturing Stocks Outperforming Tesla in 2021

The continuing government efforts to transition to an ecologically cleaner future have contributed markedly to the electric vehicle (EV) market’s growth over the past year. But while the shares of EV giant Tesla (TSLA) have gained significantly this year, the shares of auto manufacturers Ford Motor (F), Lucid (LCID), and Tata Motors (TTM) have garnered even more investor attention than TSLA. Let’s discuss.

Rising fossil fuel prices and government initiatives to transition consumers to electric vehicles (EVs) drove EV sales this year. According to a new report by Kelley Blue Book, EV sales jumped nearly 60% year-over-year in the third quarter to an all-time high. The global EV  market is expected to reach $812.89 billion by 2028, registering a 19.8% CAGR.

Although the total revenues of EV juggernaut Tesla, Inc. (TSLA) increased 56.8% year-over-year to $13.76 billion, the company’s operating expense grew 32.1% from its year-ago value to $1.66 billion in its last reported quarter. Furthermore, due to semiconductor chip shortages, Tesla’s popular models are in short supply, and buyers are facing delivery delays. But even with these constraints, TSLA’s shares have gained 64.8% in price year-to-date.

However, auto manufacturing companies  Ford Motor Company (F), Lucid Group, Inc. (LCID), and Tata Motors Limited (TTM) have outperformed TSLA this year, capitalizing much better on the industry tailwinds.

Click here to checkout our Electric Vehicle Industry Report for 2021

Ford Motor Company (F)

F designs, manufactures, markets, and serves a full line of Ford trucks & vans, utility vehicles, cars, and Lincoln luxury vehicles. The Dearborn, Mich., company operates through three segments: Automotive; Mobility; and Ford Credit. F also offers a wide range of SUVs and crossovers, electrified vehicles, fleet vehicles, and other performance vehicles.

This month, F partnered with Kid Trax, a brand of Dorel Industries, Inc., to launch Ford Bronco, the kid-sized version of a 4x4 SUV vehicle that is designed to mimic the features of its adult-sized  counterpart, including the running lights, sport bucket seats, and a realistic spare fifth tire on the rear. The partnership should  allow both companies to engage with their customers by creating a new brand experience.

F’s total revenue came in at $35.68 billion in the third quarter, ended September 30, 2021. The company’s net income amounted to $1.82 billion. Its cash and cash equivalents grew 8.7% to $27.43 billion for the six months ended September 30, 2021. Also, the company’s EPS came in at $0.45 during the period.

F’s revenue is estimated to increase 13.7% year-over-year to $144.25 billion its fiscal year 2022. The company has an impressive earnings surprise history; it beat the consensus EPS in each of the trailing four quarters. Its EPS is expected to grow 363.4% in the current year. The stock has surged 74.3% in price over the past nine months and 158.7% year-to-date.

Lucid Group, Inc. (LCID)

LCID is a manufacturer of electric vehicles (EVs). The company designs, engineers, and builds electric vehicles, EV powertrains, and battery systems. Its Lucid application provides an in-car experience, and LCID also offers Air Dream Edition, Air Grand Touring, Air Touring, and Air Pure. LUCID is based in Newark, Calif.

This month, LCID launched its newest retail store, the Lucid Studio at Tysons Corner Center in the Washington, DC, Metro Area. The new store is located at one of the largest malls and should provide quality exposure. Also, at the new store,  customers can review options for the full Lucid Air lineup of luxury, high-performance EVs.

For the quarter ended June 30, 2021, LCID’s cash came in at $1 million. The company’s interest income was t $27,450 during the period.

LCID’s revenue is expected to increase 2,179% year-over-year to $1.74 billion in its fiscal year  2022. Its EPS is estimated to grow 34.8% next year. Its stock has soared 138.2% in price over the past six months and 358.7% year-to-date.

Tata Motors Limited (TTM)

Headquartered in Mumbai, India, TTM is an automobile manufacturer that offers a wide range of cars, utility vehicles, trucks, buses, and defense vehicles. The company manufactures engines for industrial and marine applications, transmissions for commercial vehicles, and factory automation equipment. TTM markets its products under the Tata, Daewoo, Fiat, Jaguar, and Land Rover brands.

This month, TTM signed a five-year memorandum of understanding (MoU) with Equitas SFB, one of the country’s small finance banks, to bring a set of financial solutions to its customers. With this partnership, TTM can offer its extensive range of vehicles, easy financing, and flexible repayment options to a larger set of customers.

During its second fiscal quarter, ended September 30, 2021, TTM’s net revenue increased 14.7% year-over-year to ₹613.79 billion ($8.28 billion). Also, the company’s EBITDA grew 8.4% from its year-ago value to ₹52 billion ($701.69 million).

A $49.22 billion consensus revenue estimate for the fiscal period ending March 2023 represents a 25.6% increase year-over-year. Its EPS is expected to grow at 6.9% per annum over the next five years. The company has surpassed the consensus EPS estimates in three of the trailing four quarters. And the  stock has gained 170.5% in price year-to-date and 259.1% over the past year.

Click here to check out our Automotive Industry Report for 2021

F shares were trading at $20.17 per share on Tuesday afternoon, up $0.02 (+0.10%). Year-to-date, F has gained 129.47%, versus a 26.04% rise in the benchmark S&P 500 index during the same period.

About the Author: Priyanka Mandal

Priyanka is a passionate investment analyst and financial journalist. After earning a master's degree in economics, her interest in financial markets motivated her to begin her career in investment research.


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