Car stocks, especially shares of electric vehicles (EVs), have turbocharged portfolios in the past year. Meanwhile, the auto industry — which increasingly relies on semiconductors — has been in the limelight.
However, due to the current chip shortage, many car makers have announced they would be temporarily halting production. As a result, car stocks have come under pressure. And therefore, this article introduces seven car stock to sell in the short run.
Semiconductors are found in a wide range of products in computing, autos, telecommunications, military systems, gaming and healthcare. Chips are typically behind most technological innovation. But the semiconductor industry is cyclical. During periods of high demand, upturns occur. The pandemic has meant increased sales in consumer items that have now translated into supply shortages.
Business cycles also impact auto sales. When the novel coronavirus hit our shores about a year ago, shares of car makers tanked. But