A lot has been said about the rise of EV car companies like Tesla but are some of the traditionally cool car brands worth an investment?
Tesla Stock Price | Shutterstock
In an era where electric vehicle (EV) stocks capture significant market attention, traditional sports car companies present a nice counterpoint for diversifying their portfolio.
How to Buy Luxury & Sports Car Stocks
As the automotive industry pivots towards electrification, storied brands are adapting, merging their heritage of luxury and performance with innovative technologies. This shift not only signifies a new chapter in automotive design and engineering but also offers a unique investment proposition, potentially providing a window to acquire shares in companies known for their exclusivity and prestige.
Investors interested in tapping into this segment have two primary avenues:
- Independent sports car manufacturers
OR
- Subsidiaries that are part of larger automotive groups
Independent companies like Ferrari and Porsche offer a direct connection to their iconic status and market performance. This makes for a straightforward path to investment in luxury and performance car markets.
Investing in subsidiaries such as Jaguar (under Tata Motors) represents a less direct route. In these cases, the investment is not solely in the luxury sports car brand but is also impacted by the parent company's broader portfolio of vehicles, diluting the direct impact of the sports car brand's performance.
Sports Car Stock Performance Table (2023-24)
|
Car Brand |
Ticker |
Vehicle Sales in 2023 |
1-Year Stock Performance (Mar 20, 2024) |
|
Ferrari |
RACE |
13,663 (+ 3.3%) |
63.43% |
|
Corvette |
GM (General Motors) |
25,945 (-30%) |
21.91% |
|
Jaguar |
TATAMOTORS.NS (Tata Motors *India) |
64,241 (+4.2%) |
11.66% |
|
Rolls Royce |
BMW.DE (BMW) |
6,032 (+0.2%) |
9.08% |
|
Porsche |
POAHY |
320,221 (+3%) |
-7.46% |
|
Lotus |
GEELYY (Geely Motors ADR) |
2,200 (N/A) |
-8.57% |
|
Lamborghini |
VOW.DE (Volkswagen) |
10,112 (+10%) |
-11.83% |
|
Bentley |
VOW.DE (Volkswagen) |
13,560 (-10%) |
-11.83% |
|
Aston Martin |
AML.L |
6,700 (+4.7%) |
-24.83% |
Independent Sports Car Stocks
Ferrari | Shutterstock
1. Ferrari (RACE)
Ferrari is adopting electrification with a focus on maintaining its legendary performance and exclusivity. Ferrari is targeting carbon neutrality by 2030 and, despite its dedication to internal combustion engines, is significantly shifting towards electrification. By 2026, according to the company, around 60 percent of Ferrari's sales will be composed of fully electric and hybrid vehicles. During a year that set records, hybrids made up 44 percent of Ferrari's deliveries, whereas vehicles with solely internal combustion engines accounted for 56 percent of the sales. Ferrari’s Purosangue SUV is a big driver of the sales growth.
2. Aston Martin (AML)
Aston Martin's current most popular seller is the DBX, an SUV that combines luxury with performance, attracting a broader audience to the brand. Recently, Aston Martin has faced financial challenges, but it has ambitious plans for the future, including a significant shift toward electrification. The company aims to offer an electrified option for every model in its lineup by 2030,
3. Porsche Automobil Holding SE (POAHY)
Porsche's current bestsellers include the Macan and the 911, appealing to both luxury SUV enthusiasts and sports car aficionados. Porsche has seen robust sales, especially with a significant increase in its electric vehicle lineup, highlighted by the Taycan's growing popularity. Looking forward, Porsche is committed to electrification, with plans to have 80% of its new vehicles electric by 2030.
Car Manufacturers with Sports Car Subsidiaries
4. Lotus (Owned by Geely Motors)
Lotus's current popular seller is the Emira, an all-new sports car that combines traditional Lotus driving dynamics with more comfort and technology. Lotus is experiencing a resurgence, marked by positive reception to the Emira guided by its ownership under Geely Motors. The company began shipments of the Evija in 2023, an all-electric hypercar, signifying Lotus's commitment to innovation and sustainability.
5. Rolls Royce (Owned by BMW)
Rolls-Royce's current top sellers are the Cullinan SUV and the Ghost sedan, catering to ultra- luxury markets worldwide. Despite global economic fluctuations, Rolls-Royce has maintained strong sales from its elite customer base, recently recording its highest annual sales. The company is moving towards electrification, with plans to introduce its first all-electric model, the Spectre.
6. Lamborghini (Owned by Volkswagen Group)
In 2023, Lamborghini experienced a significant surge in its business performance, marking a record-breaking year. This growth was significantly driven by the sales of its internal combustion engine models, the Urus and Huracan, both of which are projected to continue their sales momentum until their production ends in late 2024. Lamborghini's other current popular models are the Aventador and Huracan sports cars. The company is moving towards electrification and sustainability, with plans to hybridize its entire lineup by 2024 and introduce its first all-electric model later this decade.
7. Bentley (Also owned by Volkswagen Group)
Bentley's most popular current sellers are the Bentayga SUV and the Continental GT. The brand has been experiencing strong sales, reflecting its luxury appeal even amid economic uncertainties. Looking ahead, Bentley is committed to an ambitious electrification strategy, planning to offer only plug-in hybrid or electric vehicles by 2026 and aiming for a fully electric lineup by 2030.
8. Corvette (Produced by General Motors)
The Chevrolet Corvette, particularly the latest C8 model, remains a favorite among sports car enthusiasts, offering impressive performance and innovative design. Recent years have seen strong sales, affirming its iconic status. However, like many automakers, Corvette faces challenges like adapting to electrification and supply chain issues that hampered deliveries in 2023. Future plans for the Corvette brand include potential hybrid and electric versions, aligning with the broader industry shift towards sustainability.
9. Jaguar (Owned by Tata Motors)
Jaguar's current popularity revolves around models like the F-PACE SUV, appealing to luxury crossover markets, and the all-electric I-PACE. The brand has been thriving under Tata Motors ownership but faces challenges such as maintaining sales momentum amid intense competition and shifting automotive trends. Future plans include deepening its commitment to electrification, as part of Jaguar Land Rover's strategy to become a net-zero carbon business by 2039.
In Summary
Luxury and sports car companies, blending heritage with electrification, are a potential new avenue for diversifying investment portfolios away from direct investment in EV companies.
These companies, including Ferrari, Porsche through their own stocks or the likes of Jaguar and Lamborghini through big car brands, are pushing towards a sustainable future with plans for electrification and new model introductions, reflecting potential growth areas for investors.
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