AutoNation, Inc. AN recently announced that it has joined forces with Autonomy to help the latter scale up its electric vehicle (EV) subscriptions nationally.
Autonomy, USA’s largest EV subscription company, was launched in California earlier this year. It offers a seamless solution to EV customers who want to avoid the hassles of long-term debt or commitment that comes with buying or leasing. Drivers are offered the flexibility to subscribe month on month after a minimum of a three-month hold period. Customers can subscribe to an EV entirely through the specified apps and customize their monthly payments to meet their budget. The impeccable and lucid provisions of the company have made it a hot favorite among customers.
Presently Autonomy offers Tesla’s Model 3 and Model Y. Autonomy’s subscription model offers the cheapest, fastest and easiest way to get hold of the two Tesla models, and eventually other models and brands. AutoNation will function as Autonomy’s “Dealer of Record” and through the partnership, assist the company in its planned acquisition of as many as 20,000 electric vehicles from other reputed automakers over the upcoming year to year and a half. AutoNation will aid in vehicle preparation and delivery services in connection with Autonomy customer activations, besides maintenance, repair and reconditioning services for its growing fleet of subscription vehicles.
AutoNation will also enable Autonomy to intensively expand nationally by leveraging AN’s clout in the country. Autonomy is also of the view that it will get a scope to remain capital efficient and infrastructure light, which will smoothly facilitate its adoption of EVs and gain profitable subscriptions.
AutoNation tops the list in the United States through its massive automotive retailer network. Its dealer networks and excellent service offerings like vehicle maintenance and repair services, vehicle parts, extended service contracts, vehicle protection products and other aftermarket products augur well for long-term prospects. Recently, 129 AutoNation stores have been certified in the coveted J.D. Power 2022 Dealer of Excellence Program. The program acknowledges only a handful of vehicle dealerships throughout the country that are known for providing remarkable customer service. The recent collaboration thus testifies further as to why AutoNation is among the most enterprising retailers globally.
Shares of AutoNation have lost 5.6% over the past year compared with its industry’s 7.2% decline.
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Zacks Rank & Key Picks
AN carries a Zacks Rank #3 (Hold), currently.
Better-ranked players in the auto space include BRP Inc. DOOO, LCI Industries LCII and Standard Motor Products SMP, each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
BRP has an expected earnings growth rate of 11.36% for 2023. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
BRP’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 56.81%, on average. The stock has declined 13.5% over the past year.
LCI Industries has an expected earnings growth rate of 65.8% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. LCII pulled off a trailing four-quarter earnings surprise of 21.81%, on average. The stock has declined 10.1% in the past year.
Standard Motor has an expected earnings growth rate of 5.2% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has risen 6.6% over the past year.
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