In a notable development, Tesla, Inc. (TSLA - Free Report) has nearly reached the goal of producing 5,000 Model 3 sedans in the last week of second-quarter 2018. In an email, CEO Elon Musk praised the employees for producing 5,000 Model 3s, thereby, reaching the long-delayed target. Importantly, Model 3 is dubbed to transform Tesla, from a niche manufacturer to a mainstream automaker. The company has also produced 2,000 Model S sedans and Model X sport utility vehicles (SUVs), combinedly, taking overall production to a record 7,000 for the week.
In fact, this electric vehicle (EV) manufacturer has been incurring losses to produce the Model 3sedans. Moreover, alongside the entry of several other players in this space, delays have come in the way of achieving the target. More specifically, problems pertaining to over-dependence on automation on its assembly lines, battery issues and other bottlenecks hindered Model 3 production rate.
As the end of second-quarter 2018 neared, Musk encouraged workers, built a new assembly line in a huge tent outside the main factory, and aired that Tesla could hit its target. All these worked in the company’s favor and helped Tesla meet its target.
In the past six months, shares of Tesla have outperformed the industry it belongs to. During the period, its stock has grown 8.1% in comparison with the industry’s decline of 6.2%.
Tesla currently has a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Ferrari N.V. (RACE - Free Report) and Fox Factory Holding Corp. (FOXF - Free Report) . While both Allison Transmission and Ferrari sport a Zacks Rank #1 (Strong Buy), Fox Factory carries a Zacks Rank #2.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has an expected long-term growth rate of 10%. Over the past year, shares of the company have gained 7.1%.
Ferrari has an expected long-term growth rate of 17.3%. Over the past year, shares of the company have gained 57.3%.
Fox Factory has an expected long-term growth rate of 11.5%. Shares of the company have risen 28.1% over the past year.
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