819.98 +1.11 (0.14%)
After hours: 7:59PM EDT
Triple Moving Average Crossover
|Bid||820.20 x 1300|
|Ask||820.22 x 1000|
|Day's Range||815.71 - 834.60|
|52 Week Range||176.99 - 968.99|
|Beta (5Y Monthly)||1.16|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 22, 2020 - Jul 27, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||532.88|
The Dow Jones futures were higher late Tuesday following the coronavirus stock market rally. Five top stocks near buys include Alphabet and Apple.
(Bloomberg) -- At a factory near Germany’s border with the Czech Republic, Volkswagen AG’s ambitious strategy to become the global leader in electric vehicles is coming up against the reality of manufacturing during a pandemic.The Zwickau assembly lines, which produce the soon-to-be released ID.3 electric hatchback, are the centerpiece of a plan by the world’s biggest automaker to spend 33 billion euros ($36 billion) by 2024 developing and building EVs. At the site, where an East German automaker built the diminutive Trabant during the Cold War, VW eventually wants to churn out as many as 330,000 cars annually. That would make Zwickau one of Europe’s largest electric-car factories—and help the company overtake Tesla Inc. in selling next-generation vehicles.But Covid-19 is putting VW’s and other automakers’ electric ambitions at risk. The economic crisis triggered by the pandemic has pushed the auto industry, among others, to near-collapse, emptying showrooms and shutting factories. As job losses mount, big-ticket purchases are firmly out of reach—in the U.S., more than 36 million people have filed for unemployment since mid-March. Also, the plunge in oil prices is making gasoline-powered vehicles more attractive, and some cash-strapped governments are less able to offer subsidies to promote new technologies.Even before the crisis, automakers had to contend with an extended downturn in China, the world’s biggest auto market, where about half of all passenger EVs are sold. Total auto sales in China declined the past two years amid a slowing economy, escalating trade tensions, and stricter emission regulations. EV sales are forecast to fall to 932,000 this year, down 14% from 2019, according to BloombergNEF. The drop-off is expected to stretch into a third year as China's leaders have abandoned their traditional practice of setting an annual target for economic growth, citing uncertainties. Economists surveyed by Bloomberg expect just 1.8% GDP growth this year.The global market contraction raises the prospect of casualties. French finance minister Bruno Le Maire has warned that Renault SA, an early adopter of electric cars with models like the Zoe, could “disappear” without state aid. Even Toyota Motor Corp., a hybrid pioneer when it first introduced the Prius hatchback in 1997, is under pressure. The Japanese manufacturer expects profits to tumble to the lowest level in almost a decade.Automakers who for years have invested heavily in a shift to a high-tech future—including autonomous vehicles and other alternative energy-based forms of transportation such as hydrogen—now face a grim test. Do their pre-pandemic plans to build and sell electric cars at a profit have any chance of succeeding in a vastly changed economic climate? Even as Covid-19 has obliterated demand, for the car makers most committed to electric, there’s no turning back.“We all have a historic task to accomplish,” Thomas Ulbrich, who runs Volkswagen’s EV business, said when assembly lines restarted on April 23, “to protect the health of our employees—and at the same time get business back on track responsibly.”Volkswagen Pushes AheadGlobal EV sales will shrink this year, falling 18% to about 1.7 million units, according to BloombergNEF, although they’re likely to return to growth over the next four years, topping 6.9 million by 2024. “The general trend toward electric vehicles is set to continue, but the economic conditions of the next two to three years will be tough,” said Marcus Berrett, managing director at consultancy Roland Berger.Volkswagen’s Zwickau facility became the first auto plant in Germany to resume production after a nationwide lockdown started in March. Before restarting, the company crafted a detailed list of about 100 safety measures for employees, requiring them to, among other things, wear masks and protective gear if they can’t adhere to social-distancing rules.The cautious approach has reduced capacity—50 cars per day initially rolled off the Zwickau assembly line, roughly a third of what the plant manufactured before the coronavirus crisis. Persistent software problems also have plagued development of the ID.3, one of 70 new electric models VW group is looking to bring to market in the coming years.Still, Ulbrich and VW CEO Herbert Diess over the past three months have reaffirmed Volkswagen’s commitment to electrification. “My new working week starts together with Thomas Ulbrich at the wheel of a Volkswagen ID.3 - our most important project to meet the European CO2-targets in 2020 and 2021,” Diess wrote in a post on LinkedIn in April. “We are fighting hard to keep our timeline for the launches to come.”Diess has described the ID.3 as “an electric car for the people that will move electric mobility from niche to mainstream.” Pre-Covid, the company had anticipated that 2020 would be the year it would prove its massive investments and years of planning for electric and hybrid models would start to pay off.A more pressing worry that could hamper VW’s ability to scale up production is its existing inventory of unsold vehicles. The cars need to move to make room for new releases, but sales are down as consumers are tightening their spending. One response has been to offer improved financing in Germany, including optional rate protection should buyers lose their jobs. VW also has adopted new sales strategies first used by its Chinese operations, such as delivering disinfected cars to customer homes for test drives, and expanding online commerce.Other German automakers are similarly pushing ahead with EV plans. Daimler AG is sticking to a plan to flank an electric SUV with a battery-powered van and a compact later this year. BMW AG plans to introduce the SUV-size iNEXT in 2021 as well as the i4, a sedan seeking to challenge Tesla’s bestselling Model 3.A potential obstacle for all these companies—apart from still patchy charging infrastructure in many markets—is the availability of batteries. Supply bottlenecks appear inevitable given that the number of electric car projects across the industry outstrip global battery production capacity. And boosting cell manufacturing is a complicated task.China's (Weakened) EV Dominance For VW and others, the first big test of EVs’ appeal in a Covid-19 world will come in China. Diess has referred to China as “the engine of success for Volkswagen AG.” VW group deliveries returned to growth year-on-year last month in China, while all other major markets declined.Not long ago, China appeared to be leading the world toward an electric future. As part of President Xi Jinping’s goal to make the country an industrial superpower by 2025, the government implemented policies that would boost sales of EVs and help domestic automakers become globally competitive, not just in electric passenger cars but buses, too.With the outbreak seemingly under control in much of the country, China is seeing some buyers return to the showrooms, but demand for passenger cars is likely to fall for the third year in a row, putting startups like NIO at risk and hurting more-established players like Warren Buffett-backed BYD Co., which suffered from a 40% year-on-year vehicle sales decline in the first four months of 2020.The Chinese auto market may shrink as much as 25% this year, according to the China Association of Automobile Manufacturers, which before the pandemic had been expecting a 2% decline. EV sales fell by more than one-third in the second half of 2019.NIO, the Shanghai-based startup that raised about $1 billion from a New York Stock Exchange initial public offering in 2018 but lost more than 11 billion yuan ($1.5 billion) last year, was thrown a much-needed lifeline when a group of investors, including a local government in China’s Anhui Province, offered 7 billion yuan last month.Other Chinese manufacturers are counting on support from the government, too, including tax breaks and an extension to 2022 of subsidies, originally scheduled to end this year, to make EVs more affordable.For now, the government will also look to help makers of internal combustion engine vehicles, at least during the worst of the crisis, said Jing Yang, director of corporate research in Shanghai with Fitch Ratings. But, she said, “over the medium-to-long term, the focus will still be on the EV side.”America is Tesla CountryCompanies can’t count on that same level of support from President Donald Trump in the U.S., where consumers who love their SUVs and pickup trucks have largely steered clear of electric vehicles not named Tesla.The U.S. lags China and Europe in promoting the production and sale of EVs, and that gap may widen now that Americans can buy gas for less than $2 a gallon.“When you’re digging out of this crisis, you’re not going to try to do that with unprofitable and low-volume products, which are EVs,” said Kevin Tynan, a senior analyst with Bloomberg Intelligence.Just weeks after announcing plans to launch EVs for each of its brands, General Motors Co. delayed the media debut, originally planned for April, of the Cadillac Lyriq EV. Then on April 29, the company said it would put off the scheduled May introduction of a new Hummer EV. The models are part of CEO Mary Barra’s strategy to spend $20 billion on electrification and autonomous driving by 2025, to try to close the gap with Tesla.In another move aimed at winning over Tesla buyers, Ford unveiled its electric Mustang Mach-E last November at a splashy event ahead of the Los Angeles Auto Show. The highly anticipated model had been scheduled to debut this year. Ford has not officially postponed the release, but the company has said all launches will be delayed by about two months, potentially pushing the Mach-E into 2021.Elon Musk, whose electric cars dominate the U.S. market, is engaging in a high-profile fight with California officials. Tesla’s factory in Fremont, Calif., closed because of the statewide ban on non-essential manufacturing, a policy Musk slammed as “fascist.” The billionaire, in a May 11 tweet, vowed to reopen the plant in defiance of the county government. Then, on May 16 Tesla told employees it had received official approval.During most of the shutdown in California, the company managed to keep producing some cars thanks to better relations with local officials regulating its other factory, in Shanghai. That plant closed as the virus spread from Wuhan in late January, but the local government helped it reopen a few weeks later in early February.First Zwickau, Then the WorldThe ID.3’s new electric underpinning, dubbed MEB, is key to VW’s strategy to sell battery-powered cars on a global scale at prices that will be competitive with similar combustion-engine vehicles. Automakers typically rely on such platforms to achieve economies of scale and, ultimately, profits. MEB will be applied to purely electric vehicles across all of the company’s mass-market brands, including Skoda and Seat.VW said it spent $7 billion developing MEB after Ford Motor Co. last year agreed to use the technology for one of its European models. Separately, the group’s Audi and Porsche brands are built on a dedicated EV platform for luxury cars that the company says will be vital in narrowing the gap with Tesla.VW plans to escalate its electric-car push by adding two factories, near Shanghai and Shenzhen, that it says could eventually roll out 600,000 cars annually, more cars than Tesla delivered globally last year.While China is the initial goal, making a dent in Europe and the U.S. is the long-term one. Like China, Europe had been tightening emissions regulations significantly before the pandemic. New rules to reduce fleet emissions will gradually start to take effect this year, effectively forcing most manufacturers to sell plug-in hybrids and purely electric cars to avoid steep fines.Because of the mandates, Europe’s commitment to electrification isn’t going away, said Aakash Arora, a managing director with Boston Consulting Group. “In the long term, we don’t see any relaxation in regulation,” he said.For VW, this crisis wouldn’t be the first time it started a new chapter in difficult times. Diess saw an opportunity, coming off the manufacturer’s years-long diesel emissions scandal that cost the company more than $33 billion, to win approval for the industry’s most aggressive push into EVs. When VW unveiled the ID.3, officials compared its historic role to the iconic Beetle and the Golf, not knowing that this might hold in unintended ways: The Beetle arose from the ashes of World War II, and the Golf was greeted by the oil price shock in the 1970s.“We have a clear commitment to become CO2 neutral by 2050,” VW strategy chief Michael Jost said, “and there is no alternative to our electric-car strategy to achieve this.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
According to a Tuesday filing with the Securities and Exchange Commission (SEC), SpaceX's latest funding round was a smashing success. Elon Musk, the CEO of carmaker and solar energy provider Tesla (NASDAQ: TSLA), founded SpaceX in 2002. In March, SpaceX filings indicated it had raised $221.2 million in funding from 11 investors, in response to a $250 million offering.
(Bloomberg Opinion) -- Wednesday is looking like a watershed moment in history. The scheduled afternoon launch of a SpaceX Dragon capsule atop a Falcon 9 rocket from Cape Canaveral, Florida, at 4:33 p.m. would mark the first time a privately owned vehicle takes astronauts into orbit.Elon Musk, the billionaire space entrepreneur and chief executive of Tesla Inc., founded SpaceX in 2002. If the launch succeeds — bad weather could push it to Saturday — it would be the company’s crowning achievement to date. Musk’s hope is to enable the colonization of Mars. Delivering two astronauts to the International Space Station suggests that his grand ambition might be more than a pipe dream.Even if not, it will be a breakthrough moment in the commercialization of space. All of a sudden, space tourism seems plausible. If SpaceX can fly astronauts from Florida to the orbiting laboratory, then why couldn’t it fly you and me — soon — to an orbiting restaurant to have dinner above the atmosphere?For years, the U.S. has been buying rides to space from Russia, spending $3.5 billion for 52 rides since 2011. Instead of turning to Russia, NASA will now rely on private-sector spacecraft. For many Americans, this will be a needed boost of pride.A half-century ago, the U.S. sent Neil Armstrong and Buzz Aldrin to the moon, in part with the goal of beating the Soviet Union in the space race. At the height of the Cold War, competition with the U.S.S.R. provided an organizing principle for U.S. efforts in space, and a remarkable amount of government resources were brought to bear in the effort. At its peak in the mid-1960s, $7 out of every $1,000 of national income was spent by the National Aeronautics and Space Administration.Having beaten the Soviet Union, the U.S. lacked a clear objective, and the space program drifted. In 2011, the space shuttle program was terminated. The SpaceX launch will mark a rebirth, the first time astronauts have flown to space from the U.S. in nearly a decade.In these wilderness years, the U.S. gradually forged a new space exploration relationship between the government and the private sector. In 2004, two years after Musk founded SpaceX, a presidential commission concluded that business should play a larger role than it ever had. “In NASA decisions, the preferred choice for operational activities must be competitively awarded contracts with private and nonprofit organizations,” the commission wrote.It also defined a more limited role for the U.S. space agency. “NASA's role must be limited to only those areas where there is irrefutable demonstration that only government can perform the proposed activity,” it said.With the reins for much space activity handed over to commercial interests, the past decade has seen an explosion of investment in a profusion of companies. In a 2018 paper, economist Matthew Weinzierl documented the rise of “space access” companies sending people and payloads into space, “remote sensing” companies providing images of the earth, “habitats and space station companies” providing secure facilities for tourism, research and manufacturing, and “beyond low-earth orbit” companies focusing on asteroid mining, space manufacturing and colonizing the moon and Mars. Weinzierl listed several dozen companies, including SpaceX.Weinzierl reported that investment in startup space-sector firms increased to roughly $2.5 billion per year in 2015 and 2016 from less than $500 million annually during the 2000s. Financing often comes from entrepreneurs like Musk, who are wealthy enough to absorb the high fixed costs needed to enter the space-commerce market.This week’s launch with a crew will heighten commercial interest in space and strengthen market forces already at work. Information about consumer and industry preferences will need to be aggregated. Willingness to pay for space commerce needs to be determined. Resources and capital need to be allocated to their best uses. Innovation needs to be fostered. Only markets can build a commercial sector in space.Investors and entrepreneurs will be needed. They will be seeking the enormous profits promised by space commerce, but will need to tolerate enormous risk, as well. If Musk succeeds today, the risk they face will go down a notch.Indeed, competition is a back story to today’s success. In 2014, NASA awarded contracts both to SpaceX and Boeing. In December, a timing error on its debut flight forced the Boeing Starliner capsule to miss a rendezvous with the International Space Station. Boeing will be scrambling to catch up, keeping the pressure on SpaceX. Blue Origin, founded in 2000 by the billionaire chief executive of Amazon.com Inc., Jeff Bezos, is another notable competitor, working to create reusable launch vehicles to lower the cost of space access.Even as the private sector plays a larger role in space, there are glaring needs for governments to provide basic rules and structure. Public policy in outer space is in its infancy. For example, space debris in earth’s orbit could impose significant damage to private property. It needs to be dealt with, perhaps by assigning property rights or by taxing it. And with low-earth orbit in the hands of the private sector, NASA should feel intensifying pressure to achieve goals more plausibly beyond the reach of commerce, like landing on asteroids and colonizing Mars.The sad backdrop to this historic achievement is the coronavirus pandemic that has taken hundreds of thousands of lives around the world and devastated economies in many countries, including the U.S. The end of the decade-long U.S. retreat from space is like a shaft of light piercing that dark cloud. And when that cloud is a distant memory, SpaceX’s accomplishment will still be with us.Commerce is bringing the U.S. back to the stars.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Michael R. Strain is a Bloomberg Opinion columnist. He is director of economic policy studies and Arthur F. Burns Scholar in Political Economy at the American Enterprise Institute. He is the author of “The American Dream Is Not Dead: (But Populism Could Kill It).”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
SpaceX is launching astronauts into space Wednesday. That’s a really big deal for the country. But is it a big deal for Tesla stock?
The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F […]
The major stock indexes were sharply higher early Tuesday on coronavirus vaccine hopes. Alphabet and Apple broke out past new buy points.
Elon Musk's SpaceX said on Tuesday that it raised $346.2 million in a new round of funding, a day before it launches two American astronauts to the International Space Station. The private rocket company's launch of its first crewed mission on Wednesday from NASA's Kennedy Space Center in Florida will put an end to the U.S. space agency's nine-year hiatus in human spaceflight. The launch, which will be attended by President Donald Trump, is crucial for Musk, SpaceX and NASA.
Dow Jones futures surged as vaccine hopes fuel the hot coronavirus market rally. Apple, Google are breaking out. Tesla and AMD are near buy points.
Entrepreneur Elon Musk's SpaceX is set to launch two American astronauts to the International Space Station on Wednesday from NASA's Kennedy Space Center in Florida, ending the U.S. space agency's nine-year hiatus in human spaceflight. California-based SpaceX's Crew Dragon capsule carrying astronauts Doug Hurley and Bob Behnken and its Falcon 9 rocket is due to lift off at 4:33 p.m. EDT (2033 GMT) on Wednesday from the same launch pad used by NASA's last space shuttle mission in 2011.
Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk and his partner Canadian musician Grimes have changed their baby's name to comply with Californian law. What Happened The baby X Æ A-12 will now be named X Æ A-Xii to comply with a law in California, revealed Grimes on Instagram Sunday.Grimes said in response to a comment on the social media network, "Just removed the numbers to confirm [sic] to California law," She added, "Roman numerals. Looks better tbh."The singer also added that a dash in the name was allowed by the law.Why It Matters According to the California Birth Registration Handbook, baby names are limited to the 26 alphabets of the English language and cannot include numeric characters or diacritical marks. Hyphens or apostrophes may be used in certain names. Musk had previously disclosed that his baby boy's name is pronounced "X Ash A 12." Explaining the meaning of the name, he had said X is just "X," and the A-12 is just "A 12."The Tesla chief executive gave credit to his wife for coming up with the name and disclosed that A-12 signifies the Archangel-12 plane, the precursor of their favorite aircraft SR-17. Musk announced at the beginning of the month that he was rethinking his "attachment to the material world" and will be selling "almost all physical possessions."It is not certain if the baby's name would be accepted by the state of California, reported Business Insider. Price Action On Friday, Tesla shares closed 1.30% lower at $816.88.Image Credit: Elon Musk's Twitter.See more from Benzinga * Amazon Shareholders Demand Disclosures On COVID-19 Worker Safety * BlackRock Under Pressure From Activist Shareholders On Mindful Climate-Related Investing * Hewlett Packard To Reduce Workforce, Slash Salaries(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
A recent study by Raj Chetty and his Harvard colleagues for the National Bureau of Economic Research suggests that much of the decline in economic activity in US states was already happening before states shut down. Under these circumstances, Mr Musk’s decision to throw a juvenile tantrum towards state and local public health officials — who according to preliminary studies were responsible for saving thousands of lives — seems amazingly selfish.
What happened Shares of VectoIQ Acquisition (NASDAQ: VTIQ) were up on Tuesday, as the stock continued to gain momentum ahead of an expected merger with electric-semi maker Nikola Motor next month. As of 12:45 p.
When you think "clean energy," you probably picture rows and rows of solar panels, or maybe a wind farm or hydroelectric dam. Enter Clean Energy Fuels (NASDAQ: CLNE), which provides natural- and renewable-gas-based fuels for vehicles. The first thing you may be wondering is why anyone would even be interested in natural gas fuel when there's already plenty of oil-based diesel fuels around, not to mention green "biodiesel" options and zero-emission battery technology.
Tesla Inc. (TSLA) is asking the Chinese government for approval to build model 3 vehicles in the country equipped with lithium iron phosphate (LFP) batteries, Reuters reported.The name of the battery maker wasn’t disclosed, according to a document by the Ministry of Industry and Information Technology seen by Reuters.Reuters exclusively reported in February that Tesla is in advanced talks to use LFP batteries from CATL that contain no cobalt - one of the most expensive metals in electric vehicle (EV) batteries - in cars made at its China plant.Tesla did not immediately respond to a request for comment from Reuters.Model 3 vehicles are being built at the U.S. car maker’s Shanghai factory. On May 8 Tesla revealed that it secured a 4 billion yuan ($565M) lending line for continued expansion of production at the Gigafactory Shanghai.The company uses EV batteries from Panasonic Corp and LG Chem. CATL has said it would start supplying Tesla from July.Earlier this month figures from the China Passenger Car Association (CPCA) showed that sales of Tesla’s Model 3 sedan in China plunged 64% in April vs March. The industry association also said that auto demand was now recovering following the coronavirus outbreak.The value of Tesla shares has more than doubled in the past two months. The stock depreciated 1.3% to $816.88 as of the close on Friday.TipRanks data shows that Wall Street analysts take a more cautious stance on Tesla stock. The Hold consensus rating is based on 9 Sells, 9 Holds, and 8 Buys. Following the stock’s recent rally, the Street’s $623.45 average price target implies 24% downside potential in the shares over the coming year. (See Tesla’s stock analysis on TipRanks).Related News: Tesla Drops Alameda County Lawsuit Over California Plant Reopening Tesla Gets County Nod To Reopen California Auto Plant – Report Fiat Chrysler Shares Decline on Dividend Payout Withdrawal More recent articles from Smarter Analyst: * Here’s Why Roku Stock Will Stay Afloat * Is CymaBay’s Seladelpar Back in the Saddle? 5-Star Analyst Weighs In * Why Aurora Cannabis (ACB) Stock Looks Attractive * Macy’s Spikes 17% On Refinancing Plan To Weather Coronavirus Crisis
In the days and weeks after Tesla CEO Elon Musk revealed the cybertruck — a post-apocalyptic inspired vehicle made of cold-rolled steel — there was a lot of speculation about whether it would be smaller once it actually made it to market. Production of the Cybertruck is still a long ways off.
California’s Alameda County, home to Tesla’s flagship Fremont assembly plant, saw a 20-plus percent spike in confirmed Covid-19 cases over the past week.
A study says America’s billionaires gained $434 billion in wealth during the crisis. A more sensible way of looking at the numbers show they lost nearly that much.
Tesla Inc is seeking Chinese government approval to build model 3 vehicles in the country equipped with lithium iron phosphate (LFP) batteries, a document on the website of the Ministry of Industry and Information Technology showed. Reuters exclusively reported in February that Tesla is in advanced talks to use LFP batteries from CATL that contain no cobalt - one of the most expensive metals in electric vehicle (EV) batteries - in cars made at its China plant. Tesla did not immediately respond to a request for comment.
Nearly a year ago, Todd Howard, the director of Bethesda Games, said that Fallout Shelter would be coming to Tesla displays. It arrived this week via the 2020.20 software update, which was first noted at driver's platform Teslascope. Fallout Shelter is the latest — and one of the more modern games — to join Tesla Arcade, an in-car feature that lets drivers play video games while the vehicle is parked.
Jim Cramer shares stock market news including Apple and Tesla competing in the tech sector, Expedia optimistic about travel and the recent jobless claims.
Tesla is returning to production at its factories in California and Nevada, and reports say it’s offering unpaid leave to production workers who are leery of returning to work out of fear over being exposed to the coronavirus. The stipulation, outlined in an email memo to employees from HR boss Valerie Capers Workman, runs until May 31 and requires employees to sign a document and get approval for the unpaid leave. The memo also announced the automaker’s intention to reinstate its attendance policy effective Friday.
One only needs to look at Western Europe's April car sales to know that 2020 has been a disaster for all vehicle manufacturers including Tesla (NASDAQ:TSLA). On a relative basis, however, Tesla's April decline was actually pretty good, which is great news if you own TSLA stock.Source: Tudoran Andrei / Shutterstock.com Here's why. According to the European Automobile Manufacturers' Association (ACEA), the overall sales in Western Europe in April fell by almost 80%, led by declines of 97.6% and 96.5% in Italy and Spain, respectively. InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe association's data shows that the car company with the best result in April was Lada, which is owned by Renault (OTCMKTS:RNLSY). It saw April sales fall by 48.6%, selling a whopping 107 vehicles over the 30-day period. Lada's sales for the entire European Union fell 71.2%. By comparison, Volkswagen (OTCMKTS:VWAGY) saw its legacy brand's sales fall 76.9% in Western Europe and 74.3% for the entire European Union. * 7 Excellent Penny Stocks Ready to Roar Nissan (OTCMKTS:NSANY) and Honda (NYSE:HM) saw sales decline by more than 80%.And Tesla? According to Forbes, Tesla's sales in the Western Europe region dropped by 38% in April, to 2,737. While Tesla isn't a member of ACEA, if these numbers are accurate, it's another reason why Tesla stock is the best of a bad bunch. None of the other car companies have Tesla's online sales model to fall back on during a pandemic. Overall, sales in Europe are expected to fall between 15% and 30% in 2020. HowNorth America Sales and TSLA StockIn the first quarter, only four brands had year-over-year increases in U.S. car sales: Kia (+1%), Lincoln (+2.8%), Ram (+2.5%), and Tesla (+72.5%). If you're a Tesla shareholder, this figure has got to make you smile amidst all the carnage. As for electric vehicles, Tesla sold an estimated 11,925 vehicles in April, 98% higher than a year earlier. It accounted for 58% of all plug-in electric car sales and 78% of all fully electric vehicles. Not unexpected, April vehicle sales in the U.S. declined by 24.5% over the same period last year to 8.6 million units on a seasonally adjusted annualized basis. However, the consensus estimate was for 7.4 million vehicles, so the numbers actually beat expectations by 16%. Also not a surprise, light trucks accounted for 77% of all sales in April. Thank goodness for cheap gas and the fact that business picked up toward the end of the month. TD expects new-vehicle inventory to spike to 140 days in the second quarter, the highest it's been since late 2008. This translates into great deals for consumers on 2020 models and lower profits for dealerships. Interestingly, the average transaction price in April went up, to $38,060. With all the unemployment in the country, that's a head-scratcher. "Despite our expectation that retail sales volume will be cut in half in April due to the impact from COVID-19, average transaction prices continued their upward trajectory, hitting record highs this month," said Eric Lyman, Chief Industry Analyst for ALG, a subsidiary of TrueCar. Apparently, consumers think it's a good idea to overpay for their vehicles, just so they can get an 84-month, 0% loan. The industry gives with one hand and takes with the other. But that's a subject for another day. The point is that automotive sales in North America appear to be far more resilient than those in Europe. What's This Mean for TSLA Stock?Ark Investment Management founder and CEO, Catherine Wood, originally predicted Tesla stock would reach $4,000 by 2023. At the beginning of 2020, Wood upped that number to $7,000 by 2024.Since the pandemic hit, she's cut the projection to $6,800 by 2024, to factor in a struggling economy, etc. That's based on a belief that Tesla will start an "Uber-like" business before moving on to an autonomous car service."I've always said to analysts, wherever I've been a portfolio manager, that the truth wins out," Wood told Institutional Investor in April. "If we're right, we're going to be rewarded."Indeed they will. If you're long Tesla, stay long. If you're not, there's still plenty of room on the bandwagon. As long as Elon Musk continues to push the innovation button, good things are bound to happen. Will Ashworth has written about investments full-time since 2008. Publications where he's appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Tesla Stock Continues to Get the Better of Its Peers During the Pandemic appeared first on InvestorPlace.
Futures pared losses as Dr. Anthony Fauci said Moderna vaccine data was hopeful. Despite Thursday's fall, the market rally is up solidly this week. Alibaba and Nvidia earnings easily beat.