|Bid||0.00 x 1800|
|Ask||0.00 x 800|
|Day's Range||112.58 - 113.36|
|52 Week Range||87.97 - 114.07|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.14%|
In the week ended August 17, Ford Motor Company (F) stock settled at $9.55, a fall of 2%. The stock has seen negative movement in nine of the last ten weeks. In the previous week, it fell 3%.
As of August 17, the broader market has largely traded on a mixed note, and the S&P 500 (SPY) benchmark has inched up 0.6%. Global trade equations becoming more puzzling could be one of the reasons for investors’ mixed sentiments. In the last couple of months, trade tensions between the United States and other countries, including China, Canada, and European countries, have haunted auto investors.
Last week, Tesla (TSLA) stock fell 14.1% to $305.50. The New York Times published an interview with Elon Musk, Tesla’s CEO, late on August 16. At 9:45 AM EST, Tesla was trading with 3.1% losses—compared to a 0.1% fall in the NASDAQ 100 Index. Among other automakers (XLY), General Motors (GM), Ford (F), and Fiat Chrysler (FCAU) rose 0.8%, 0.9%, and 2.1%, respectively.
Can America Be Great Again without a Strong Auto Industry? In this series so far, we have discussed how the global trade war is affecting the auto industry’s (XLY) profitability. On May 23, the Trump administration initiated a section 232 investigation into auto imports.
Tesla (TSLA) CEO Elon Musk was interviewed by the New York Times on August 16. In the candid interview, Musk answered a variety of questions that have been puzzling Tesla investors since he tweeted on August 7 that he’s “considering taking Tesla private at $420.
Can America Be Great Again without a Strong Auto Industry? In the previous part of this series, we discussed how President Donald Trump has criticized automakers (XLY) for moving their production outside the US. To avoid being on Trump’s hit list, many companies such as Ford (F), General Motors (GM), and Fiat Chrysler (FCAU) have highlighted plans to increase their investments in the US.
According to the latest data compiled by Reuters, 54% of the analysts covering Advance Auto Parts (AAP) recommended a “buy,” 38% recommended a “hold,” and 8% recommended a “sell.”
Since the time Donald Trump began his presidential campaign, he has targeted automakers (XLY) like Ford Motor Company (F) for the decision to move car production to Mexico. Since coming into power, Trump has kept a close eye on automakers to make sure they don’t move their car production out of the US.
Valuation multiples are commonly used in the automotive and auto industry to compare different businesses entities. We can only use valuation multiples to compare companies that are similar in nature in terms of size or financials.
According to the recent data compiled by Reuters, only 18% of analysts covering Ford stock (F) gave it “buy” ratings. By comparison, a much higher percentage of about 57% of analysts covering GM stock gave it “buy” ratings. These ratings were based on the consensus of 22 analysts covering Ford and 21 analysts covering GM as of August 14, 2018.
Can America Be Great Again without a Strong Auto Industry? In 2017, the biggest challenge for automakers was to generate more sales and keep their profitability intact at a time when US auto sales were softening. In the last few years, US passenger car sales have gone down significantly, while stronger truck sales have kept automakers’ hopes alive.