For Immediate Release
Chicago, IL – January 19, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NIO Limited
NIO
, XPeng Inc.
XPEV
, Tesla, Inc.
TSLA
, General Motors Company
GM
and Ford Motor Company
F
.
Here are highlights from Monday’s Analyst Blog:
Auto Stock Roundup: Tesla, NIO, GM and More
Last week, China’s 2020 auto sales data was released. Last to last week, 2020
U.S. and U.K. auto sales
results were out, reflecting coronavirus woes. Vehicle sales in China, which is the world’s largest car market, also depicted coronavirus-led sluggish demand. The country witnessed the third consecutive annual sales decline in 2020. However, sales increased for the ninth straight month in December as the industry is on the recovery track from coronavirus-induced lows.
According to the China Association of Automobile Manufacturers, a total of 25.3 million vehicles were sold in 2019, marking a year-over-year drop of around 2%. While sales of passenger vehicles slipped 6% in 2020, sales of new energy vehicles — including electric vehicle (EVs) and hybrids — were up 11% year over year to 1.37 million units.
On the news front, China EV star
NIO
announced the pricing of $650 million of convertible senior notes due 2026 and another $650 million of convertible senior notes due 2027. The firm will utilize the proceeds to repay debts, strengthen cash position and for general corporate purposes. Meanwhile, another rising EV star of China,
XPeng
inked a strategic agreement with five banks in China to secure a credit line of 12.8 billion yuan ($2 billion) for expansion of its manufacturing, sales and service capabilities. The most important news for the week gone by are mentioned below.
Recap of the Week’s Top Stories
Tesla
officially commenced operations in India by establishing a fully-owned subsidiary in Bengaluru. Further, it plans to set up a research and development unit and eventually, a manufacturing facility for its EVs in the country. The company will begin operations in India as a sales company by importing completely built units into the country.
The U.S.-based EV behemoth plans to import, distribute, sell, service, and maintain EVs, stationary energy storage systems and equipment, including solar panels in the world’s fourth largest auto market. The first model to be offered to consumers in India will be Tesla’s flagship Model 3, entry-level variant, initially priced at INR 55-60 lakhs, ex-showroom. Tesla currently sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
General Motors
announced the launch of a business unit — BrightDrop. This unit has been particularly designed to offer an integrated ecosystem of electric first-to-last-mile products, software and services, aimed at helping delivery as well as logistics companies to transfer goods efficiently.
The BrightDrop EP1 will be the first product to be rolled out early this year in the new unit. The second product, an all-electric light commercial delivery van, namely EV600, is slated to be unveiled by the end of this year and become more widely available to customers by early 2022. At the CES annual tech and gadget show, General Motors also unveiled a futuristic flying Cadillac and a Cadillac boxy shuttle.
Ford
recently announced that the company will shut three manufacturing plants — Camacari, Taubate and Troller plants — in Brazil as it is restructuring the South American business. On account of the decision, Ford currently expects to incur pre-tax charges of $4.1 billion, of which $2.5 billion pertains to 2020 and $1.6 billion to 2021.
The company claims to be transiting to a lean, asset-light business model by halting production in Brazil. Nonetheless, the automaker is focused on serving customers in Brazil with the all-new Ranger pickup, Transit van, Bronco and Mustang Mach 1, as well as several of its most premium models.
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.
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https://www.zacks.com/performance
for information about the performance numbers displayed in this press release.
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