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.
Published on January 9
Major automakers are extending the life of their petrol models as EV adoption slows. This shift could create unexpected opportunities for traditional automotive companies.
These companies have decades of experience and proven business models built around internal combustion engines, positioning them to capitalise on sustained demand.
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.
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.
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.
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.
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.
GM: $79.41B
F: $57.38B
TM: $331.90B
Get the full story on this Basket. Read our detailed article on its risks and potential.
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Disney is suing the FCC to block an early license review of its ABC stations, arguing the move is politically motivated retaliation against its news coverage. This unprecedented legal battle highlights the growing regulatory risks for traditional broadcasters and underscores the structural advantages of unregulated digital streaming platforms.
SK Hynix has unveiled a record-breaking 40 trillion won share buyback fueled by soaring demand for its AI memory chips. This historic capital return creates a compelling investment theme centered on high-bandwidth memory producers and the specialized equipment manufacturers that enable their advanced production.
Home Depot's recent earnings beat highlights consistent consumer spending on smaller household repair and maintenance projects. This ongoing trend presents promising opportunities for various home improvement retailers and building material suppliers.
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General Motors
GM
Current Price
$86.72
As a major automaker with a substantial portfolio of popular petrol-powered trucks and SUVs, the company benefits directly from sustained demand for t...
As a major automaker with a substantial portfolio of popular petrol-powered trucks and SUVs, the company benefits directly from sustained demand for traditional vehicles.
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13 of 16 assets in this group are rated Buy by professional analysts.
