Here is a review of selected auto manufacturer stocks. 

The legacy manufacturers, such as Toyota, BMW, Mercedes and Ford have a price earning ratio of about 6 times and an average dividend yield of 6%.

The EV manufacturers, i.e. Tesla and BYD, have a price earning ratio of about 50 times and pays no dividend. 

The auto market is moving rapidly towards electric vehicles. The legacy manufactures will face a shrinking market and lower earnings. This is reflected in their low stock prices. 

The EV manufacturers will enjoy an expanding market and fast revenue growth. Their earnings will grow rapidly. Does this justify their current high prices?

Which stock will do well over the next 12 months? I prepare this chart for a comparison in 12 months time.

Tan Kin Lian