Despite the supply chain bottlenecks suffered by most automotive companies last month, Tesla (NASDAQ:TSLA) dominated car sales, which caused its stock to rally and become expensive. But some other automotive companies could deliver returns as good as TSLA. We think Mazda Motor (OTC:MZDAY) and Isuzu Motors (ISUZY) are poised for a solid rally in the coming months. So, these stocks could be solid bets now.New car sales fell in November despite robust consumer demand for automobiles due to higher-than-expected private payrolls and technical breakthroughs. Automobile sales in the United States fell 0.7% month-over-month to $12.9 million last month. Automotive companies struggled to meet the rising demand due to shortages of semiconductor chips, tight inventories, and delivery delays.
However, Tesla, Inc. (TSLA) was able to slough off the supply chain challenges. The company dominated electric vehicle (EV) sales in November. In addition, TSLA topped the month with 1,013 for Tesla Model Y cars registered and 771 Tesla model 3 cars registered. Its stock has gained more than 90% in price over the past year, and we think looks overvalued at its current price level.
Happily, we think there are a few automotive companies other than Tesla that are worth considering. For example, due to their excellent brand value and financial flexibility, Isuzu Motors Limited (ISUZY) and Mazda Motor Corporation (MZDAY) are expected to deliver returns that match TSLA’s in the near term. Thus, these stocks could be solid bets now.