Time to shed the negative bias and look ahead: 6 auto stocks with an upside potential of up to 42%

The headlines about auto sales numbers paint a gloomy picture. Should you be surprised by the low numbers? The answer is no. There is a technical reason why April sales tend to be lower. A lot of frontloading of sales happens in March in order to take advantage of depreciation norms. What many may have missed is that, in some cases, the auto stocks have already priced in this slowdown. In other cases, the stocks have not seen any drop, clearly indicating that there is no selling pressure. Is it because their EV forays are turning out to be better than expected?