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Auto Stock Roundup: U.S. March Auto Sales Down, Tesla Q1 Deliveries Up; Ford Provides Plan Details
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Over the last week, performance of most automakers has been disappointing with Tesla, Inc. (TSLA - Free Report) being an exception. Most automakers reported a decline in March sales when compared to the year-ago figure.
Tesla witnessed record deliveries in first-quarter 2017, up 69% from the prior-year quarter. On the back of record deliveries Tesla became the second largest U.S. auto manufacturer by market cap, a position previously held by Ford Motor Company (F - Free Report) . Along with a year-over-year decline in monthly U.S. sales, the latter also announced details of its China electrification strategy.
Winnebago Industries, Inc.’s (WGO - Free Report) major shareholder announced its decision to liquidate its holding of almost 2.3 million shares. Meanwhile, Tata Motors Ltd. announced a new joint venture for the development of special performance vehicles.
1. U.S. light-vehicle sales fell 1.7% year over year to 1.55 million units in Mar 2017. Sales on a seasonally adjusted annualized rate (SAAR) basis fell to 16.6 million units in Mar 2017 from 17.57 million units in Feb 2016 and to the lowest level since Feb 2015.
2. Tesla reported record quarterly deliveries for first-quarter 2017, up about 69% year over year. Over 25,000 vehicles were delivered in the quarter, comprising of roughly 13,450 units of Model S and 11,550 vehicles of Model X. Tesla also reported record quarterly vehicle productions of 25,418 units, up 14.2% from the prior-year quarter. In addition to the deliveries recorded, about 4,650 vehicles are in transit that will be recorded as deliveries in second-quarter 2017. (Read More: Tesla Reports Record Deliveries in the First Quarter)
3. Winnebago has announced a secondary offering of stock for roughly 2.3 million shares. This underwriting comes to light as the company’s major shareholder, Summit Partners LP, looks to liquidate its entire position. The shares account for almost 7.3% of Winnebago’s total outstanding shares. The company will not receive any proceedings from this sale, which have been solely underwritten by Morgan Stanley.
Winnebago currently carries a Zacks Rank #3 (Hold).
4. Tata Motors announced a new 50-50 joint venture, JT Special Vehicles Pvt. Ltd., with Jayem Automotives Pvt. Ltd. to develop special performance vehicles based on the latest series products.
Tata Motors also reported earnings growth of 6% year over year to 542,561 units in March. While the company’s passenger vehicles cumulative sales in the domestic market rose 22% year over year in March, the same for commercial vehicles fell 1%. Cumulative sales from exports in the month went up 11% year over year. (Read More: Tata Motors Partners Jayem for Special Performance Vehicles)
Tata Motors currently carries a Zacks Rank #4 (Sell).
5. Ford provided details of its ambitious China electrification strategy. The company plans to commence the local manufacturing of the Mondeo Energi plug-in hybrid in 2018 and electric powertrains by 2020. The company also aims to introduce a small completely electric SUV in the country within five years. By 2025, Ford plans to electrify 70% of the total cars sold in the country and provide a wide range of electrified vehicles.
The move comes after the company lost its position as the second largest U.S. car manufacturer by market cap to Tesla. Ford’s recent lowering of first-quarter guidance and weak U.S. sales in March pushed its share price down.
Ford currently carries a Zacks Rank #5 (Strong Sell).
Performance
Auto stocks witnessed a dismal performance over the last week. While Honda Motor Co., Ltd. (HMC - Free Report) lost the maximum among the stocks listed below, Tesla was the sole gainer.
Over the last six months, while Tesla has been the biggest gainer, Ford was the worst performer.
President Donald Trump will be meeting Chinese President, Xi Jinping. The meeting might result in amendments in trade policies.
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Auto Stock Roundup: U.S. March Auto Sales Down, Tesla Q1 Deliveries Up; Ford Provides Plan Details
Over the last week, performance of most automakers has been disappointing with Tesla, Inc. (TSLA - Free Report) being an exception. Most automakers reported a decline in March sales when compared to the year-ago figure.
Tesla witnessed record deliveries in first-quarter 2017, up 69% from the prior-year quarter. On the back of record deliveries Tesla became the second largest U.S. auto manufacturer by market cap, a position previously held by Ford Motor Company (F - Free Report) . Along with a year-over-year decline in monthly U.S. sales, the latter also announced details of its China electrification strategy.
Winnebago Industries, Inc.’s (WGO - Free Report) major shareholder announced its decision to liquidate its holding of almost 2.3 million shares. Meanwhile, Tata Motors Ltd. announced a new joint venture for the development of special performance vehicles.
(Read the previous roundup here: Auto Stock Roundup for Mar 30, 2017)
Recap of the Week’s Most Important Stories
1. U.S. light-vehicle sales fell 1.7% year over year to 1.55 million units in Mar 2017. Sales on a seasonally adjusted annualized rate (SAAR) basis fell to 16.6 million units in Mar 2017 from 17.57 million units in Feb 2016 and to the lowest level since Feb 2015.
2. Tesla reported record quarterly deliveries for first-quarter 2017, up about 69% year over year. Over 25,000 vehicles were delivered in the quarter, comprising of roughly 13,450 units of Model S and 11,550 vehicles of Model X. Tesla also reported record quarterly vehicle productions of 25,418 units, up 14.2% from the prior-year quarter. In addition to the deliveries recorded, about 4,650 vehicles are in transit that will be recorded as deliveries in second-quarter 2017. (Read More: Tesla Reports Record Deliveries in the First Quarter)
Tesla currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank(Strong Buy)stocks here.
3. Winnebago has announced a secondary offering of stock for roughly 2.3 million shares. This underwriting comes to light as the company’s major shareholder, Summit Partners LP, looks to liquidate its entire position. The shares account for almost 7.3% of Winnebago’s total outstanding shares. The company will not receive any proceedings from this sale, which have been solely underwritten by Morgan Stanley.
Winnebago currently carries a Zacks Rank #3 (Hold).
4. Tata Motors announced a new 50-50 joint venture, JT Special Vehicles Pvt. Ltd., with Jayem Automotives Pvt. Ltd. to develop special performance vehicles based on the latest series products.
Tata Motors also reported earnings growth of 6% year over year to 542,561 units in March. While the company’s passenger vehicles cumulative sales in the domestic market rose 22% year over year in March, the same for commercial vehicles fell 1%. Cumulative sales from exports in the month went up 11% year over year. (Read More: Tata Motors Partners Jayem for Special Performance Vehicles)
Tata Motors currently carries a Zacks Rank #4 (Sell).
5. Ford provided details of its ambitious China electrification strategy. The company plans to commence the local manufacturing of the Mondeo Energi plug-in hybrid in 2018 and electric powertrains by 2020. The company also aims to introduce a small completely electric SUV in the country within five years. By 2025, Ford plans to electrify 70% of the total cars sold in the country and provide a wide range of electrified vehicles.
The move comes after the company lost its position as the second largest U.S. car manufacturer by market cap to Tesla. Ford’s recent lowering of first-quarter guidance and weak U.S. sales in March pushed its share price down.
Ford currently carries a Zacks Rank #5 (Strong Sell).
Performance
Auto stocks witnessed a dismal performance over the last week. While Honda Motor Co., Ltd. (HMC - Free Report) lost the maximum among the stocks listed below, Tesla was the sole gainer.
Over the last six months, while Tesla has been the biggest gainer, Ford was the worst performer.
Company
Last 1-Week Period
Last 6 Months
GM
-4.3%
+4.5%
F
-3.6%
-9.1%
TSLA
+6.4%
+46.8%
TM
-3.7%
-8.9%
HMC
-5.7%
-1.9%
HOG
-1.0%
+19.7%
AAP
-4.6%
-4.0%
AZO
-2.7%
-7.7%
Auto-Tires-Trucks Sector 5YR % Return
Auto-Tires-Trucks Sector 5YR % Return
What’s Next in the Auto Space?
President Donald Trump will be meeting Chinese President, Xi Jinping. The meeting might result in amendments in trade policies.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>