Back to top
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Toyota Motor Corporation (TM) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Toyota Motor Corporation (TM) - free report >>
Image: Bigstock
Tesla (TSLA) Moves a Step Closer to Production in China
China, the world’s largest market for autonomous vehicles, is mulling over relaxing rules pertaining to the requirement of tying up with a local company, for manufacturing vehicles in the mainland, per a Wall Street Journal news. This may come in handy for Tesla, Inc. (TSLA - Free Report) for ramping up production in China.
According to a draft proposal, China is preparing plans to allow foreign companies to manufacture electric vehicles in free-trade zones even without having a Chinese local partner. However, vehicles sold in the country will be subject to import tariffs.
Although electric cars occupy a small part of the global automobile market, Tesla has acquired a significant market share within this niche segment. Automotive revenues increased 93% year over year in second-quarter 2017, due to a 53% rise in total vehicle deliveries. The company is witnessing growing sales on the back of the strong performance and impressive design of its products.
In fact, Tesla has long been considering expansion into China. However, it was having problems in finding a local partner. This relaxation may prove to be of huge significance for the pioneer in electric vehicles.
Some important companies in the auto space include Toyota Motor Corporation (TM - Free Report) , Allison Holdings, Inc. (ALSN - Free Report) and Volkswagen AG .
Toyota has a long-term growth rate expectation of 7%.
Allison Holdings has an expected long-term earnings growth rate of 10%
Volkswagen has an expected long-term earnings growth rate of 8.9%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>