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Feb. 24, 2021, 4:10 p.m. EST

4 Top Automotive Stocks To Watch This Week

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Feb 24, 2021 (StockMarket.com via COMTEX) -- Do You Have These Top Automotive Stocks On Your Watchlist? 4 In Focus

Any seasoned auto investor can tell you that the industry has taken them on a ride over the past year. When the stock market crashed in March, automotive stocks were hit hard. However, as the dust began to settle in late 2020, automotive stocks have risen to become some of the top growth stocks out there. We have the emergence of electric vehicles (EVs) and autonomous vehicles (AVs) to thank for this.

Firstly, we saw the meteoric rise of EV company Nio ( NYSE: NIO ) whose shares are now up by over 1,500% in the past year. Back in January, the company reported that its monthly sales quadrupled year-over-year. Rising EV demands aside, the industry is also being boosted by global green initiatives. Next, we also have the emerging AV market. AVs add another dimension of transportation into the mix. They are said to improve road safety while making things more convenient for drivers in general. Big tech players such as Amazon ( NASDAQ: AMZN ) and Alphabet ( NASDAQ: GOOGL ) are making plays in this space. Not to mention, conventionally used cars are also making a comeback, in light of vaccination efforts coupled with a weakened economy.

By and large, there is no shortage of automotive stocks for investors to choose from. Considering the current industry tailwinds, are these the top automotive stocks to watch this week?

Best Automotive Stocks To Watch Right Now

BorgWarner Inc.

To begin with, we will be looking at BorgWarner. In brief, the company is a global product leader in clean and efficient automotive tech solutions. BorgWarner provides auto parts and services for combustion, hybrid, and electric vehicles. Moreover, the company operates out of manufacturing and technical facilities in 96 locations across 24 countries. For one thing, the company provides vital aftermarket auto solutions for EVs as well as conventional vehicles. This would mean that even as more consumers turn towards EVs, BorgWarner can still cater to their automotive needs. Notably, BWA stock is in focus right now as BorgWarner just made a solid acquisition yesterday.

Specifically, it acquired German lithium-ion battery system developer, AKASOL. This is a fantastic play by BorgWarner as AKASOL designs and manufactures low-cost and adaptable clean energy batteries for vehicles of varying sizes. No doubt, AKASOL would synergize with BorgWarner's expanding electrification portfolio.

As BorgWarner bolsters its existing EV-related services, the company appears to be gearing up for the global rise of EV adoption. All this paired with a strong recent quarter fiscal reported last week would catch investors' attention. Could this be a good time to watch BWA stock? You tell me.

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Baidu Inc.

Following that is Chinese multinational tech company Baidu. The company is one of the biggest names in the artificial intelligence (AI) and internet tech fields globally. For this reason, its technology and expertise have been put to great use in the EV and AV industries. For EVs, the company is currently collaborating with multinational auto manufacturer Geely, who is well-versed in EV development. On the AV front, Baidu unveiled the world's first AV Mobility-as-a-Service platform to the citizens of Guangzhou, China, last week. Safe to say, Baidu has been hard at work building its automotive portfolio. Likewise, BIDU stock has been on a tear with gains of over 130% in the past year.

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