Internal Combustion Engine Stocks (ICE Resurgence)
General Motors' multi-billion dollar write-down on its electric vehicle program signals a broader slowdown in the consumer transition away from gasoline-powered cars. This theme identifies an opportunity in companies that stand to benefit from the continued dominance and potential resurgence of the internal combustion engine vehicle market.
Your Basket's Financial Footprint
This basket's total market capitalisation is $732.20B and is dominated by a few very large-cap constituents, giving it a broadly stable, large-cap profile.
- Large-cap dominance generally implies lower volatility and returns that track broad market trends, reducing idiosyncratic risk.
- Suited as a core, long-term holding to provide stable exposure, not as a speculative, high-growth allocation.
- Expect steadier, incremental appreciation over time rather than rapid, short-term gains; growth tends to be moderate.
GM: $79.41B
F: $57.38B
TM: $331.90B
- Other
About This Group of Stocks
Our Expert Thinking
GM's recent £5.6 billion writedown on electric vehicles signals a broader shift in the automotive landscape. As the transition to EVs encounters headwinds from reduced subsidies and changing regulations, companies tied to traditional internal combustion engines may experience sustained or even increased demand as automakers extend the life of their petrol-powered models.
What You Need to Know
This group spans the entire internal combustion engine value chain, from major automakers producing popular petrol vehicles to component manufacturers and aftermarket suppliers. These established companies are positioned to benefit from a more gradual shift in vehicle technology, potentially serving as a tactical addition during this period of industry recalibration.
Why These Stocks
Each company has been handpicked by professional analysts based on their integral role in the ICE ecosystem. From Ford's iconic F-150 trucks to suppliers of essential engine components and aftermarket parts retailers, these stocks represent firms that could see renewed strength as the automotive sector adjusts its electrification timeline.
Why You'll Want to Watch These Stocks
Industry Recalibration
Major automakers are extending the life of their petrol models as EV adoption slows. This shift could create unexpected opportunities for traditional automotive companies.
Established Revenue Streams
These companies have decades of experience and proven business models built around internal combustion engines, positioning them to capitalise on sustained demand.
Market Surprise Potential
As the market has heavily focused on electric vehicles, traditional automotive stocks may be undervalued, creating potential for significant gains if ICE demand proves resilient.
Get the full story on this Basket. Read our detailed article on its risks and potential.
Why Invest with Nemo Money?
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Opportunities
Australian Life Insurance: Which Stocks May Benefit?
Zurich Insurance's acquisition of ClearView Wealth underscores a significant consolidation wave in the Australian life insurance market. This development may surface investment opportunities among other potential takeover candidates and the technology firms supporting the industry's evolution.
Amazon Ecosystem: Could This Shift Create New Winners?
Amazon has surpassed Walmart as the largest U.S. company by revenue, signaling a major shift in the American economy. This theme focuses on the ecosystem of companies poised to benefit from the escalating rivalry in e-commerce, cloud computing, and AI-driven logistics.
AI Infrastructure: What's Next After Nvidia Shift?
Nvidia is swapping its $100 billion partnership with OpenAI for a $30 billion direct equity investment, signaling a major recalibration in AI sector financing. This strategic shift creates an investment opportunity among other AI infrastructure firms poised to benefit from OpenAI's diversifying partnerships.