Oil above $100 a barrel makes running petrol and diesel vehicles more expensive, which shines a brighter light on cleaner and smarter transport options. That shift in attention can turn electric and self-driving technology from a long term idea into a more urgent theme for investors. This article walks through three stocks linked to that trend and explains what each offers within the electric and autonomous vehicle space.
The examples in this article are just a starting sample, and the full screen surfaced 55 more companies with equally compelling narratives that are not covered here. If you want to identify your own highest conviction ideas in this theme, head straight into the Electric/ Autonomous Vehicle Stocks screener.
Lincoln Electric Holdings (LECO)
Lincoln Electric Holdings plugs into the electric and autonomous vehicle theme through the less glamorous but essential work of automated welding cells, robots, and factory software that keep EV powertrain and body lines running. This is where the investment story starts to get interesting.
Lincoln Electric Holdings is a US based industrial manufacturer focused on welding, cutting, brazing, and automation systems that underpin many EV and autonomous vehicle production lines. Most revenue comes from the Americas Welding segment at about US$3.0b, with International Welding at roughly US$1.0b and The Harris Products Group near US$700 million. The business has a market cap of about US$15.0b.
"Ongoing growth in Lincoln Electric Holdings automation backlog, with 6 to 9 months of visibility and management guidance for high single-digit organic growth in the segment, points to further demand for higher value cells and cobots that can support revenue growth and a move toward mid-teens EBIT margins."
The real swing factor is how a single pressure on this EV focused automation pipeline ultimately filters through to those future margin targets.
That pressure point is exactly what the full narrative for Lincoln Electric Holdings unpacks, showing how automation demand, pricing power and cycle risks could be decoupling beneath Lincoln Electric Holdings headline margins.
Kongsberg Gruppen (OB:KOG)
Kongsberg Gruppen builds high tech defence and maritime systems, and its Discovery segment gives the group a clear stake in autonomous vessels and navigation for uncrewed platforms. Other activities contribute NOK 2.1b of revenue, and the business is valued at about NOK 263b.
Kongsberg Gruppen matters for this theme because its Discovery arm is already selling real autonomous maritime platforms and control systems, yet the bigger question is how reliably that pipeline turns into profits over time.
"There may be an overestimation of the company’s ability to consistently convert its swelling multi-year order backlog into high-margin, timely revenues, given management’s comments about project mix (e.g., low-margin development contracts vs. more profitable export deals) and the structural volatility inherent to large government defense programs, which could potentially result in more erratic quarterly margins and earnings than implied by smooth growth models."
For investors tracking Kongsberg Gruppen’s role in autonomous systems, a single shift in how that backlog is priced could reshape both growth and margins.
That pricing shift is exactly what the full narrative for Kongsberg Gruppen unpacks. It shows where accelerating autonomy demand could amplify returns or quietly cap upside.
Caterpillar (CAT)
Caterpillar brings the electric and autonomous vehicle theme into heavy industry through self-driving mining trucks, electrified shovels and connected construction equipment, even though most sales still come from more traditional machinery and power systems. Resource Industries and Construction Industries together generate about US$42.6b in revenue, with Power & Energy adding roughly US$34.7b. The group has a market value near US$389.9b.
Caterpillar gives this screener real-world heft, because its autonomous trucks and electrified powertrains already run in mines and on jobsites, and the same technology stack underpins how it addresses AI driven power demand.
"Rapid growth in Power & Energy, including 72% sales to users growth in power generation for data center applications and customer orders for large engines and turbines extending out to 2029 and 2030, indicates a long runway of AI driven power projects that can add to revenue and support operating margins as new capacity is utilized."
What really decides how much investors benefit is whether one pressure on those long dated projects quietly caps the margin lift that this backlog hints at.
That pressure on long dated projects is exactly where the full narrative for Caterpillar shows how AI power demand, capital cycles and pricing could be quietly reshaping Caterpillar’s earnings mix.
Seeking Fresh Alternatives Beyond EVs
Fresh ideas move first. Slow research gets caught holding stocks after the breakout, not before it. Scan these curated lists while it matters and get in early.
- Target durable cash generators by running the 27 high quality undervalued stocks before the crowd prices in their quality and balance sheet strength.
- Explore the next wave of automation momentum by working through the curated 87 robotics and automation stocks packed with businesses tied to real-world industrial adoption.
- Review opportunities in the metals space by scanning the hand-picked 17 top copper producer stocks focused on producers geared to long term electrification demand.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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