Investing in the automobile sector can be extremely tricky as companies part of this sector experience high capital expenditures and cyclical revenue. As a result, most automobile companies have underperformed indices such as the S&P 500 in the last two decades.
However, the accelerated shift toward clean energy solutions makes legacy auto manufacturers such as Ford Motor (F) and General Motors (GM) top long-term bets right now. The two companies are eyeing the rapidly expanding electric vehicle segment and are poised to benefit from multiple secular tailwinds going forward.
