The auto industry remains well-positioned to maintain its momentum next year, driven by declining inflation, an expected interest rate cut early next year, the growing adoption of electric vehicles, and improving supply chains.
However, not all auto stocks can capitalize on the industry tailwinds. I am extremely bearish on XPeng Inc. (XPEV), given its poor growth prospects. On the other hand, Harley-Davidson, Inc. (HOG) is worth watching, and Mercedes-Benz Group AG (MBGAF) could be a solid portfolio addition now.
