Everything you need to know on buying automotive share

Buy automotive shares: Everything you need to know on the subject

It is true that the classic combustion engine will no longer exist in the future. However, the revolution towards electric motors and possibly hydrogen drives offers good opportunities to buy automotive shares.

The various sharing models from SHARE NOW (the merger of car2go and DriveNow) to Uber are also promising. Many of these were launched by classic automotive brands. If you have a good nose, study the future trends a little and back the right horse, you risk relatively little by investing in car shares.

Buying car shares - These are the most important tips

First of all, get an overview of the current market development before buying automotive shares. What are the current innovations, where are the developments going and which areas are gradually being phased out? Electromobility, for example, is growing and will probably experience a significant upswing in the next five to ten years. In addition, there are exciting projects such as autonomous driving.

Companies that are playing around in these segments - Tesla from the USA, for example - can expect increasing approval on the stock markets. But sharing models are also increasingly making a name for themselves. For example, the rental and online taxi apps from Uber, BMW and Daimler AG are providing an immense boost.

You can buy these car shares via various brokers such as eToro, Libertex or Plus500. In the following, you will learn more about all the important factors that should play a role in your decision.

The best tips for beginners summarised: 

•     Watch developing and future markets: In the automotive industry, electric mobility, autonomous driving and sharing models are on the rise.
•     Find the best deals through lucrative online brokers like eToro or Libertex.    Take advantage of low share prices during crises, e.g. emissions scandals and trade wars. In the long run, the chances of growth are good.
•     When buying automotive shares, it may make sense to focus on suppliers - e.g. manufacturers of innovative battery systems and hydrogen drives.

Which automotive stocks are there?

Most of the classic engine and car manufacturers have been on the stock markets for a long time. Porsche, BMW, VW and Daimler have therefore been considered a safe investment in recent decades, at least in the long run - apart from some interim slumps due to scandals or trade embargoes.

These industry giants have recently been taken on by innovation drivers, including companies in https://exnesslatam.com/demo-cuenta/ such as Tesla, Uber and the supplier Leoni AG. Asian, especially Chinese, companies with a focus on the technology turnaround have also seen significant rises. Looking at the current prices, these brands may be interesting if you want to buy automotive shares.

My conclusion on lair auto stocks: 

Right now, pass on negative and pass on positive trends are intersecting in this segment. Because: A change from the combustion engine to the electric vehicle is imminent. It is not a foregone conclusion that the future of mobility will be battery-based. At the moment, however, the share prices of companies that are specifically involved in this technology are rising. 

While the growth potential could be exhausted in view of the immense increase in value of large players like Tesla, it is worth taking a look at smaller visionary companies and bite the dust suppliers. Battery producers are likely to pick up speed in the near future, as are developers of tidy car systems. Furthermore, mobility services such as Uber and SHARE NOW are setting new trends. 

Overall, it is important to observe the market first, pass on the chance to participate in the coming revolution, but also not to let it pass you by. German producers could play a more important role than one might think. Furthermore, Daimler, VW and Co. are respected worldwide and are eagerly working on new concepts in their research centres.