There are many different ways to buy Car Stocks in the stock
market. You can buy the pure play automobile companies or buy the stock of auto suppliers. Both of these
sectors are a pure play on the US economy in 2016.
Vehicle stocks were flat
ahead of 2016 because of the volatile late year stock market. As we head into 2016, the Chinese economy and Interest
Rate decisions will be the focus this year. Car stocks mostly traded sideways in 2015 with big drops in Ford (F) and
Volkswagon (VLKAY). The top performing car stock was Honda (HMC) followed by Tesla (TSLA) which jumped over 6%.
Best Car Stocks 2016
Tesla Motors (TSLA) - Tesla
(TSLA) is my top car stock in 2016 once again. Tesla (TSLA) stock continues to see huge volatility but has been trending
up. The fact that Elon Musk only buys TSLA and never sells, this give confidence to current shareholders. Tesla
(TSLA) is expanding into battery production and will release more details of the Model 3 car in early 2016. The model
3 vehicle will cost around $35,000 before govenment incentives.
Telsa (TSLA) stock is a strong buy below $200 in
2016 and I again have a price target of $300 per share. If the company can report strong earnings and guidance, there
is a chance we see $320-$350.
Toyota Motors (TM) - Toyota Motors (TM) stock rallied into the $140's
last year but then pulled back late in the year. This automotive company continues to produce great vehicles with strong and
efficient engines which is great for the consumer. I think Toyota can $145 at some point in 2016. TM is a safe car stock
to buy in 2016.
Ford (F) & General Motors (GM) - Both Ford and
GM are car stocks to sell in 2016. If we hit another financial crisis, short these as much as you can. Both Ford
& GM continue to make low priced and cheap vehicles that do not last. Consumers find it very hard to trust these
two brands. If we see big gains from Ford & GM in 2016, sell and buy into Tesla on a big dip. Tesla is
changing the car industry as we know it. Electric Vehicles will continue to gain momentum and Tesla is building the
charging network to power these vehicles. I also view Honda Motor (HMC) as a safe car stock pick in 2016.