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Big Day For The Auto Industry: Ford, GM And Tesla Dominate Headlines

Brett Hershman

Tuesday was a pretty big day for the auto industry, struck with news from several of the major players in the business.

Einhorn And GM

Activist investor David Einhorn unveiled a plan for General Motors Company (NYSE: GM) to split its stock into two classes, much like the plan he proposed for Apple Inc. (NASDAQ: AAPL) in 2013. Einhorn maintains he wants GM to create two different classes of common stock for GM, and separate dividends from the rest of the company’s earnings.

Like Apple did four years ago, however, GM has rebuffed Einhorn’s plan. GM makes up around 10 percent of Einhorn’s Greenlight Capital portfolio and is one of its three largest holdings.

Ford Invests, Trump Praises

Ford Motor Company (NYSE: F) announced it was investing $1.2 billion in three Michigan facilities. The move will likely save 3,700 jobs from moving to Mexico, and add 130 additional jobs. President Trump praised the announcement, solidifying his rhetoric of jobs "coming back to the U.S."

Tencent's Tesla Stake

Tesla Inc (NASDAQ: TSLA) shares rose after revealing in a 13G filing that Chinese internet company Tencent Holdings (OTC: TCEHY) took a new 5 percent stake in the company. Tencent's stake includes around 8.2 million shares in Tesla, making them the fifth-highest shareholder In the company.

"Elon Musk is the archetype for entrepreneurship, combining vision, ambition, and execution. Tesla is a global pioneer at the forefront of new technologies including electric vehicles, assisted driving, shared vehicles, digitizing real-world information, sustainable energy generation and scalable energy storage," Tencent said in a statement to Bloomberg.

Related Links:

Like He Did With Apple, David Einhorn Wants GM To Create 2 Shares Classes

Tesla Continues Rally After Tencent Reveals 5% Passive Stake

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