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Tesla (TSLA) to Open Doors of R&D Site in Chinese Capital
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Tesla Inc. (TSLA - Free Report) is reportedly establishing a new company in Beijing (China) for its research and development (R&D) purposes with an initial capital investment of $2 million. The new set-up will be under Tesla’s subsidiary, Hong Kong Tesla Technology Ltd., and has been named Tesla (Beijing) New Energy Research and Development Co. Ltd.
This new development follows the company’s last-month announcement to build a new factory in China. Further, the company’s CEO confirmed that Tesla will pump in large investments to make the factory ready for production around 2020.
Per a draft proposal, China intends to allow foreign automotive companies to produce electric vehicles in their free-trade zones without joining any local partner. This development has encouraged Tesla to open its first manufacturing plant in China.
China’s pledge to ban combustion engine cars by 2030 and focus on promoting electric vehicles makes it a potential market for Tesla. Moreover, unveiling a plant in the country will enable the company to lower its logistics cost.
At its upcoming production site in China, the company has plans to manufacture Model 3 and possibly Model Y cars to cater to the demand of the Chinese market and neighboring nations. However, the factory won’t be producing any Model S or Model X car.
Currently, Tesla manufactures its vehicles only in California. However, the final assembling of a few vehicles is done in Netherlands too.
Price Performance
In the last three months, shares of the company have underperformed the industry it belongs to. The stock has lost 10.1% against the industry’s 5.9% gain during the period.
Cummins has an expected long-term growth rate of 12.2%. The stock has seen the Zacks Consensus Estimate for current-quarter earnings per share being revised 2.4% upward over the last 30 days.
American Axle has an expected long-term growth rate of 8.1%. Over a month, shares of the company have been up 1.7%.
Navistar has an expected long-term growth rate of 5%. Its shares have been up 19.1% in the last three months.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Tesla (TSLA) to Open Doors of R&D Site in Chinese Capital
Tesla Inc. (TSLA - Free Report) is reportedly establishing a new company in Beijing (China) for its research and development (R&D) purposes with an initial capital investment of $2 million. The new set-up will be under Tesla’s subsidiary, Hong Kong Tesla Technology Ltd., and has been named Tesla (Beijing) New Energy Research and Development Co. Ltd.
This new development follows the company’s last-month announcement to build a new factory in China. Further, the company’s CEO confirmed that Tesla will pump in large investments to make the factory ready for production around 2020.
Per a draft proposal, China intends to allow foreign automotive companies to produce electric vehicles in their free-trade zones without joining any local partner. This development has encouraged Tesla to open its first manufacturing plant in China.
Tesla Inc. Price and Consensus
Tesla Inc. Price and Consensus | Tesla Inc. Quote
China’s pledge to ban combustion engine cars by 2030 and focus on promoting electric vehicles makes it a potential market for Tesla. Moreover, unveiling a plant in the country will enable the company to lower its logistics cost.
At its upcoming production site in China, the company has plans to manufacture Model 3 and possibly Model Y cars to cater to the demand of the Chinese market and neighboring nations. However, the factory won’t be producing any Model S or Model X car.
Currently, Tesla manufactures its vehicles only in California. However, the final assembling of a few vehicles is done in Netherlands too.
Price Performance
In the last three months, shares of the company have underperformed the industry it belongs to. The stock has lost 10.1% against the industry’s 5.9% gain during the period.
Zacks Rank & Key Picks
Tesla carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the auto space include Cummins Inc. (CMI - Free Report) , American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) and Navistar International Corporation , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cummins has an expected long-term growth rate of 12.2%. The stock has seen the Zacks Consensus Estimate for current-quarter earnings per share being revised 2.4% upward over the last 30 days.
American Axle has an expected long-term growth rate of 8.1%. Over a month, shares of the company have been up 1.7%.
Navistar has an expected long-term growth rate of 5%. Its shares have been up 19.1% in the last three months.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>