The ongoing chip supply shortage and higher input prices forced many auto manufacturers to cut production this year. However, growing demand, rising investor optimism, and policy support for the electric vehicle industry have enabled Tesla (NASDAQ:TSLA), General Motors (GM), Ford (F), Lucid Group (LCID), and Tata Motors (NYSE:TTM) to outperform the broader markets.Despite rising consumer spending, the growing chip supply shortage affecting production, low inventory, and rising vehicle prices led to lower-than-expected November U.S. auto sales. However, rising investments to increase chip production, carbon-neutral goals, and the passage of the Bipartisan Infrastructure Bill that allots significant funding for the growing electric vehicle (EV) industry is expected to facilitate the auto industry’s rapid recovery in the upcoming months.
While many auto stocks suffered, leading auto manufacturers still outperformed the broader markets and delivered record-high sales growth throughout this year, owing to their strong inventory, global brand recognition, and the substantial availability of auto components.
Tesla, Inc. (TSLA), General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), Lucid Group, Inc. (LCID), and Tata Motors Limited (TTM) are the only auto manufacturers that have outperformed the S&P 500 index so far this year.