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Tuesday Ticker: December 28, 2021

Toronto, Ontario ⁠— As we close out 2021, this week’s Tuesday Ticker is all about the top six automotive industry stocks to turn your eyes to⁠—or avoid at all costs⁠—in 2022. 

Check out Collision Repair’s list of stocks to watch below!

 

Tesla

Seems like a duh, right?

Tesla has reached all-time heights in 2021, clearing trillion-dollar valuation numbers in the fall⁠. Unlike other companies bearing the trillion-dollar valuation seal, Tesla touched the mark before its revenue even reached the $50-billion mark.

Despite several delays met in 2021, Tesla CEO Elon Musk says that the company’s long-anticipated Cybertruck should begin production in early 2022.

 

Rivian

Rivian posted a US$12.21 per-share loss for the third quarter of 2021, while its sales reached nearly US$1 million as vehicle rollouts continue across the United States.

Rivian currently makes three electric vehicles at its Normal, Ill., plant; The R1T pickup, the R1S seven-seat SUV and the EDV 700 delivery van. The company also has its own insurance model for Rivian drivers.

In the company’s Q3 shareholder letter, Rivian disclosed that it had produced 652 R1 vehicles, and that it would fall “a few hundred” units short of its 1,200 vehicle production goal for 2021.

 

Apple

With rumours circulating that an Apple-born car could hit the market in 2025, analysts will be ready to take a bite of Apple once that sweet announcement drops.

But Apple is not a company known for far-out announcements; its iPhones and other technology are often announced mere weeks before launch.

A vehicle release could prompt a different response from the tech giant, though, given an electric vehicle carries a far heftier price tag than your smartphone.

Despite the Apple Car hype on car sites, Bloomberg and several market analysts have noted that the project is unlikely to have an impact on business or stock in 2022.

 

AutoCanada

As of December 23, shares of AutoCanada increased nearly 80 percent year-to-date. While the company’s stock has seen some highs and lows over the course of the year, AutoCanada recently secured an acquisition deal that saw the company double its presence in Ontario. 

In Q3 2021, AutoCanada reported revenues of $1.2 billion, up from $1.01 billion the previous year. Net income also rose to $38 million in Q3 2021, over $36 million in Q3 2020. 

 

Linamar

Based in Guelph, Ontario, Linamar designs, develops and sells auto parts in global markets. 

The company’s shares have increased 10.66 percent year-to-date and, according to the company’s Q3 report, net earnings in the year-to-date period increased to $370 million, or $5.65 per share; up from $166 million, or $2.54 per share, for the first nine months of 2020.

 

Magna International

Aurora, Ontario⁠-based Magna International saw its shares climb 14.25 percent year-to-date⁠—but the real selling point is in its 2021 earnings.

The company’s third-quarter earnings for the year said sales roles to $27.1 billion for the first nine months of 2020, up from $22 billion in the same period of 2020.

The company recently had a deal fall through with Veoneer, an American-Swedish provider of automotive technology. The company instead went to Qualcomm, which offered US$37 per share for a total of US$4.5 billion, compared to Magna’s offer of US$31.25 per share at a valuation of US$3.8 billion.

Despite the acquisition, Qualcomm does not own all units of Veoneer’s business; leaving the door open for Magna to purchase the so-called “leftovers.” Magna has yet to comment on the potential of it purchasing the rest of Veoneer.

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