Dec 03, 2021 09:30AM ET
By: AnalysisWatch
Despite the supply chain bottlenecks that plagued most car companies last month, Tesla dominated car sales, causing the company's stock to rise and become expensive. But some other auto companies could make returns as good as TSLA's. We believe Mazda Motor and Isuzu Motors will have a solid rally in the coming months. So these stocks could be good choices now. Due to higher than expected private payrolls and tech breakthroughs, new car sales fell in November despite robust consumer demand for automobiles. Car sales in the United States fell 0.7% to $12.9 million last month from the previous month. Automobile manufacturers struggled to meet rising demand due to semiconductor chip bottlenecks, low inventories, and delivery delays.
However, Tesla, Inc. was able to pull away from supply chain challenges. The company dominated electric vehicle sales in November. TSLA actually led the month in registrations, with 1,013 Tesla Model Ys and 771 Tesla Model 3s.The company's stock is up more than 90% over the past year, and we think it is overvalued at current price levels.
Fortunately, there are a few other automotive companies besides Tesla that we think are worth considering. For example, Isuzu Motors Limited and Mazda Motor Corporation are likely to generate returns in line with TSLA in the near future due to their excellent brand value and financial flexibility. Therefore, these stocks could be a good choice now.