Last week, Tesla (TSLA) closed at an all-time high of $436.23 and a $1.4 trillion market capitalization. Markets expect that CEO Elon Musk will benefit from President-Elect Trump in the next four years. The stock’s rise is a reminder that three auto stocks are on sale.
Toyota (TM) is slowing its electric vehicle plans. It continues to recognize that the hybrid vehicle market has better prospects. TM stock is stuck in the $175 range, valued at one-fifth that of Tesla. The stock is cheap because some of its models are not appealing to customers. For example, its RAV4 Prime hybrid is expensive and has quality issues.
Ford Motor (F) may re-test the $10.00 low last reached in August 2024. Investors sold the stock after the company kept reporting costly quality issues. Those recalls hurt profits. But the Ford stock dividend is not in danger. At a 7.51 percent dividend yield, F stock is on sale for income investors.
General Motors (GM) briefly peaked at an unsustainable $61.24. Selling accelerated after the firm wrote off its entire robotaxi business. Microsoft (MSFT) will lose $800 million from its investment in GM’s Cruise. GM will save $1 billion annually but it loses $2.4 billion in its investment.