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Cummins Inc. (CMI) - $25 value - yours FREE >>
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Cummins Inc. (CMI) - $25 value - yours FREE >>
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Tesla (TSLA) to Acquire Automation Equipment Supplier Perbix
Tesla, Inc. (TSLA - Free Report) has announced that it has agreed to buy automated equipment designer and manufacturer, Perbix Machine Co Inc, per a Reuters report. With this, Tesla is likely to further boost its efforts to turn the factory itself into a product with the aim of building up machine that makes machine.
However, the financial details of this deal have not been divulged. This announcement comes at a time when the electric car maker is aggressively focusing on raising the production of Model 3.
Importantly, for the last three years, Brooklyn Park, MN-based Perbix has been a supplier of Tesla. This acquisition by Tesla will enable it to produce more parts in house. In fact, Tesla’s strategy is to execute much of the work within the company. Tesla manufactures a range of auto parts such as seats, which most big automakers generally contract out to specialists.
In third-quarter 2017, Tesla incurred adjusted loss of $2.92 per share, wider than the Zacks Consensus Estimate of a loss of $2.45. The company had reported earnings of 70 cents per share in the prior-year quarter.
Shares of Tesla have underperformed the industry it belongs to in the last three months. The company’s shares have lost 15.8% compared with the industry’s growth of 3.4%.
Currently, Tesla carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the auto space are Navistar International Corporation , Cummins Inc. (CMI - Free Report) and PACCAR Inc. (PCAR - Free Report) , each sporting a Zacks Rank#1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Navistar has an expected long-term growth rate of 5%.
Cummins has an expected long-term growth rate of 12.1%.
PACCAR has an expected long-term growth rate of 10%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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