The auto market has been experiencing significant growth worldwide due to the increasing demand for high-end passenger vehicles and electric vehicles. However, fluctuating raw material prices and the mutualization of premium cars might hinder industry growth. While Li Auto Inc. (LI) could be kept on hold, I think Tesla, Inc. (TSLA) and Nikola Corporation (NKLA) might be best avoided for reasons discussed in this article.
Increasing demand for high-end passenger vehicles, urbanization and rising infrastructure spending in the economy are driving the automotive market growth. The industrial sector is increasing, particularly in emerging nations, creating jobs in industries such as building, mining, and tourism.
