Last week was relatively quiet for the auto sector. One announcement that gained significant attention was Tesla Motors, Inc.’s (TSLA - Free Report) plan to add new features to its Autopilot system via a software update. Meanwhile, Tata Motors Limited finally reported earnings for the quarter ended June, bringing the earnings season for the sector to an end.
Among other developments, Toyota Motor Corporation (TM - Free Report) opened a Lexus parts distribution center in Georgia. Further, Honda Motor Co., Ltd. (HMC - Free Report) and General Motors Company (GM - Free Report) announced new investment plans.
(Read the previous roundup here: Auto Stock Roundup for Aug 25, 2016)
Recap of the Week’s Most Important Stories
1. Tesla’s Autopilot system will soon get a software update to V8.0 and 8.1. CEO Elon Musk recently revealed that the update is in the final review stage and will see noticeable improvement due to advanced processing of radar signals. The over-the-air software update is expected to be rolled out in a few weeks. Tesla has also raised the price of the Autopilot feature by $500 recently.
Per Electrek, the updated Autopilot will have off-ramp and highway interchange features that will allow it to maneuver a car from one highway to another with a simple turn signal by the driver. It will also have more responsive Traffic-Aware Cruise Control and Autosteer features, better voice commands, and redesigned map and navigation interface (read more: Tesla Autopilot Becomes Costlier, Version 8.0 Expected Soon).
2. Tata Motors reported an income of INR6.57 per ordinary share (50 cents per American Depositary Share or ADS) for the first quarter (ended Jun 30, 2016) of fiscal 2017. In the year-ago quarter, the company had earned INR15.75 per share (66 cents per ADS). Consolidated revenues increased 9% year over year to INR670.56 billion ($9.87 billion). This improvement in top line was driven by strong sales in the Jaguar Land Rover business in the UK, Europe, North America, China and other Overseas markets. Strong volumes in the medium and heavy commercial vehicles segment and higher volumes in the light commercial vehicles segment in the standalone business also contributed to top-line growth.
3. Honda announced that Honda of South Carolina Mfg., Inc. will invest $45 million in an expansion and innovation project that will increase manufacturing efficiency, parts flow and logistics related to side-by-side vehicle production. These vehicles, including the Honda Pioneer 500, 700 and 1000 series models, produced exclusively at the South Carolina plant, are witnessing rising demand.
4. Toyota opened a new Lexus parts distribution center in Lithia Springs, GA that will serve dealers in Atlanta, Georgia, North Carolina, South Carolina, Alabama, and Tennessee. About 27 dealerships will be able to order from a range of 43,000 Lexus parts, which will be delivered on the same day in select metro areas.
5. General Motors revealed its plan to invest in a battery assembly plant in Shanghai, China through its SAIC-GM joint venture. This plant will help it to locally produce battery packs for new energy vehicles in the nation. General Motors plans to launch the Chevrolet Malibu XL Hybrid, Buick LaCrosse Hybrid and the Cadillac CT6 plug-in hybrid electric vehicle in China this year.
Performance
Auto sector companies had mixed fortunes on the stock market last week. Ford Motor Co. (F - Free Report) gained the most, while Tesla was the biggest loser among the stocks listed below.
Over the last six months, Harley-Davidson, Inc. (HOG - Free Report) outperformed the others once again. AutoZone lost the maximum value over the longer term.
Company | Last 1-Week Period | Last 6 Months |
GM | +0.4% | +6.4% |
F | +2.4% | -3.7% |
TSLA | -4.8% | +13.8% |
TM | -0.2% | +13.4% |
HMC | +0.7% | +15.4% |
HOG | -1.3% | +19.6% |
AAP | -1.9% | +2.6% |
AZO | -4.5% | -6.2% |
What’s Next in the Auto Space?
Later today, major automakers will report their U.S. auto sales for August.
Where Do Zacks' Investment Ideas Come From?
You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buy" stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 "Strong Sells" and other private research. See the stocks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Last week was relatively quiet for the auto sector. One announcement that gained significant attention was Tesla Motors, Inc.’s (TSLA - Free Report) plan to add new features to its Autopilot system via a software update. Meanwhile, Tata Motors Limited finally reported earnings for the quarter ended June, bringing the earnings season for the sector to an end.
Among other developments, Toyota Motor Corporation (TM - Free Report) opened a Lexus parts distribution center in Georgia. Further, Honda Motor Co., Ltd. (HMC - Free Report) and General Motors Company (GM - Free Report) announced new investment plans.
(Read the previous roundup here: Auto Stock Roundup for Aug 25, 2016)
Recap of the Week’s Most Important Stories
1. Tesla’s Autopilot system will soon get a software update to V8.0 and 8.1. CEO Elon Musk recently revealed that the update is in the final review stage and will see noticeable improvement due to advanced processing of radar signals. The over-the-air software update is expected to be rolled out in a few weeks. Tesla has also raised the price of the Autopilot feature by $500 recently.
Per Electrek, the updated Autopilot will have off-ramp and highway interchange features that will allow it to maneuver a car from one highway to another with a simple turn signal by the driver. It will also have more responsive Traffic-Aware Cruise Control and Autosteer features, better voice commands, and redesigned map and navigation interface (read more: Tesla Autopilot Becomes Costlier, Version 8.0 Expected Soon).
2. Tata Motors reported an income of INR6.57 per ordinary share (50 cents per American Depositary Share or ADS) for the first quarter (ended Jun 30, 2016) of fiscal 2017. In the year-ago quarter, the company had earned INR15.75 per share (66 cents per ADS). Consolidated revenues increased 9% year over year to INR670.56 billion ($9.87 billion). This improvement in top line was driven by strong sales in the Jaguar Land Rover business in the UK, Europe, North America, China and other Overseas markets. Strong volumes in the medium and heavy commercial vehicles segment and higher volumes in the light commercial vehicles segment in the standalone business also contributed to top-line growth.
3. Honda announced that Honda of South Carolina Mfg., Inc. will invest $45 million in an expansion and innovation project that will increase manufacturing efficiency, parts flow and logistics related to side-by-side vehicle production. These vehicles, including the Honda Pioneer 500, 700 and 1000 series models, produced exclusively at the South Carolina plant, are witnessing rising demand.
4. Toyota opened a new Lexus parts distribution center in Lithia Springs, GA that will serve dealers in Atlanta, Georgia, North Carolina, South Carolina, Alabama, and Tennessee. About 27 dealerships will be able to order from a range of 43,000 Lexus parts, which will be delivered on the same day in select metro areas.
5. General Motors revealed its plan to invest in a battery assembly plant in Shanghai, China through its SAIC-GM joint venture. This plant will help it to locally produce battery packs for new energy vehicles in the nation. General Motors plans to launch the Chevrolet Malibu XL Hybrid, Buick LaCrosse Hybrid and the Cadillac CT6 plug-in hybrid electric vehicle in China this year.
Performance
Auto sector companies had mixed fortunes on the stock market last week. Ford Motor Co. (F - Free Report) gained the most, while Tesla was the biggest loser among the stocks listed below.
Over the last six months, Harley-Davidson, Inc. (HOG - Free Report) outperformed the others once again. AutoZone lost the maximum value over the longer term.
Company
Last 1-Week Period
Last 6 Months
GM
+0.4%
+6.4%
F
+2.4%
-3.7%
TSLA
-4.8%
+13.8%
TM
-0.2%
+13.4%
HMC
+0.7%
+15.4%
HOG
-1.3%
+19.6%
AAP
-1.9%
+2.6%
AZO
-4.5%
-6.2%
What’s Next in the Auto Space?
Later today, major automakers will report their U.S. auto sales for August.
Where Do Zacks' Investment Ideas Come From?
You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buy" stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 "Strong Sells" and other private research. See the stocks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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