After the health crisis due to Covid-19 in 2020, the shares of the main automotive companies that are listed on the stock market accumulate a gain of 541.529 million dollars in market value this 2021.
Tesla even reached the select group of companies with more than $ 1 trillion in market value. This year it has earned 314.094 million dollars with an increase of 44.32% in the price of its shares, which reached a price of 1018.43 dollars and a market capitalization of 1.022 billion dollars.
The second most valuable automaker, among a group of eight analyzed, is Japan’s Toyota with $ 240.307 million in market value. This year it has earned 46.676 million dollars and an increase in the price of its securities of 24.42% on the Japan Stock Exchange.
Volkswagen is in third place with a market value of $ 171.804 million and a profit of $ 72.838 million in 2021. Its shares rose 73.72% and trade at 295.50 euros on the German Stock Exchange.
General Motors is worth 83.285 million dollars and its shares are up 37.78% in 2021. BMW advances 22.42% and has a capitalization of 67.651 million dollars. Honda and Mazda, the Japanese, have gains of 18.54 and 51.01%, respectively, this year.
The largest increase in share value is from Ford Motor Company with 81.34% so far in 2021. It has earned $ 28.563 million and totals a market value of $ 63.677 million.
Cipactli Jiménez, a private investor, commented that “people think that automakers are competing with Tesla, but the truth is that it is Tesla that competes with these companies, since it seeks to gain market dominance from them, although by capitalization it surpasses them all of them, however, have not stolen their business ”.
He added that “within 20 years, perhaps, the other automakers will have fully entered the world of innovation and electric cars, which will steal the market from Tesla. People prefer the most accessible cars like Ford, or General Motors, because also the spare parts are cheaper and for other reasons ”, he explained.
Amin Vera, Deputy Director of Economic Analysis at Black Wallstreet Capital, said that “what we are seeing is the beginning of the fourth stage of the market, euphoria, which is the quintessential indicator that the stock market will continue to rise. The recovery of auto companies has been slower than that of other sectors. Although they have good fundamentals, the euphoria of the market has benefited them ”.
Durable goods consumption has boomed, Amin Vera said, due to macroeconomic factors.
Cipactli Jiménez said that there is a greater economic recovery, a large flow of money and therefore, people consume goods such as cars.
Challenges of the sector
Automakers, such as Mazda, Honda and Toyota, have been affected by regulations in both Asia and Europe, because they are stricter on the environmental issue. “The semiconductor crisis, with a constant fight between supply and demand, which generates increases in costs, is another risk that can reduce the performance of automakers,” said Jiménez.
According to Amin Vera, the risk increased due to the rebound of Covid-19 in China, which would generate disruptions in the productive chains of the sector.
“Regardless of the risks, most of the automotive companies have a stable business model, therefore, they are sustainable companies that will continue to survive,” concluded Cipactli Jiménez.