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Auto Stock Roundup: TSLA Q1 Deliveries Solid, KMX Q4 Earnings Beat & More

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Last week, various auto giants unveiled first-quarter 2020 sales reports. Sales numbers were strong, thanks to rising demand for vehicles amid preference for personal mobility, widespread vaccination drive, optimism around federal aid and the gradual reopening of activities. In fact, the U.S. auto industry recorded the best March sales in more than 20 years.

On further encouraging note, Biden proposed a $174-billion infrastructure spending plan to encourage Americans to switch to cars and trucks that run on electricity and not gasoline or diesel. The move was undertaken in an effort to boost the development and adoption of electric vehicles, which include money to retool factories and push up domestic supply of materials, tax incentives for electric vehicles buyers, along with grant and incentive programs for charging infrastructure.

Meanwhile, global chip crunch is wreaking havoc on the auto industry and showing no signs of abatement anytime soon. Last week, trucking giant PACCAR PCAR announced that the chip shortage reduced truck deliveries by around 3,000 units in first-quarter 2021. The company expects the chip crunch to continue till first-half 2021.

Further, U.S. auto biggie Ford F announced that it is shutting operations in several factories including two plants that manufacture its bestselling F- pickup amid the growing chip crisis. The company will suspend production at the Dearborn plant for two weeks effective Apr 5. It is also halting operations at the Kansas factory for a week. It will also suspend activities at the sports utility vehicle factory in Louisville for two weeks starting Apr 12. Operations at the Oakville plant — which builds the Edge crossover utility — will be shut down for three weeks beginning Apr 12.

Last Week’s Top Stories

Tesla TSLA reported robust deliveries for first-quarter 2021. The company produced 180,338 (Model 3 and Y) vehicles and delivered a record 184,800 (182,780 Model 3 and Y, and 2,020 Model S and X) vehicles. Deliveries were up 109% from the year-ago quarter and 2.3% sequentially. The Model Y was the primary catalyst for Tesla's vehicle sales growth for the quarter. The EV behemoth stated that it was encouraged by strong reception of the Model Y in China and noted that it was quickly progressing to full production capacity.

Lithia Motors LAD announced the acquisition of Avondale Nissan dealership in Phoenix in a bid to bolster its offerings in the second largest market in the Southwest region. The transaction is expected to add $75 million in Lithia’s annualized revenues. The deal was funded through the capital raised in concurrent equity and debt offerings in late 2020.

CarMax Inc. KMX reported fourth-quarter fiscal 2021 (ended Feb 28, 2021) net earnings per share of $1.27, surpassing the Zacks Consensus Estimate of $1.24 but comparing unfavorably with the year-ago earnings of $1.30. Revenues of $5,164.3 million beat the Zacks Consensus Estimate of $5,140 million and recorded a 4.1% year-over-year increase. Importantly, the firm signed an agreement to acquire Edmunds, further solidifying its position in the used auto ecosystem.

Honda Motor HMC issued a recall for 761,000 vehicles across the globe. The recall has been issued to replace fuel pumps that could malfunction and cause engine complications. The recall consists 628,000 vehicles in the United States, covering various 2018-2020 model year Acura and Honda vehicles. Additionally, the recall encompasses a few Accord, Civic, CR-V, Fit, Pilot, Ridgeline, MDX, RDX and TLX vehicles.

NIO Inc. NIO released its delivery count for the month of March and first-quarter 2021. The China EV maker delivered 7,257 vehicles last month, up 373% year over year. The deliveries comprised 1,529 ES8s, 3,152 ES6s and 2,576 EC6s. The company delivered 20,060 vehicles during first-quarter 2021, skyrocketing 423% year over year.

Price Performance

The following table shows the stock movement of a few major auto players over the past week and six-month period.

In the past six months, all stocks have increased, with General Motors being the maximum gainer. Last week’s price display is a mixed bag, with Harley-Davidson registering the highest gain.

What’s Next in the Auto Space?

Industry watchers will track China vehicle sales data for March 2021, which is likely to be released by China Association of Automobile Manufacturers later this week. Also, watch out for any updates related to chip crunch-related disruptions in the auto market. All eyes will remain glued to how automakers tackle the semiconductor shortage and make resultant changes in business operations.

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Ford Motor Company (F) : Free Stock Analysis Report

PACCAR Inc. (PCAR) : Free Stock Analysis Report

Tesla, Inc. (TSLA) : Free Stock Analysis Report

Lithia Motors, Inc. (LAD) : Free Stock Analysis Report

CarMax, Inc. (KMX) : Free Stock Analysis Report

NIO Inc. (NIO) : Free Stock Analysis Report

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