Daimler AG’s (DDAIF - Free Report) Mercedes-Benz has unveiled its first fully-electric crossover sports utility vehicle (SUV), EQC, in Stockholm. The company’s new all-electric vehicle (EV) will compete with other top-spot vehicles by other automakers within the EV category.
As a battery-powered vehicle, the model has a driving range of more than 450 km, with two electric motors in the front and rear axles that will offer a combined output of 300 kW. Also, its flawless and clear design embodies a progressive luxury car. These features will attract luxury and technologically proficient customers.
This is in sync with Daimler’s target of launching up to 10 variants of EVs by 2022. Per management, the company expects EQC and its other EV variants to contribute 15-20% to sales in 2025. Further, its planned introduction of 10 EVs will be able to support almost 60% of the EV market.
Daimler AG Price and Consensus
Most countries are opting for emission-free vehicles to reduce pollution caused by gasoline or diesel combustion. Per Reuters, with this new trend, many German auto companies are unveiling their EV models in a bid to tap the rising demand and stay ahead of its industry counterparts. Further, with strict regulations, manufacturing EVs are less costly compared with vehicles with combustion engines. Daimler aims to stop using combustion engines in its vehicles and opt for electric models from 2020.
Earlier, in June, Daimler has launched its fully-electric semi-trailer truck, whose production is likely to start in 2021. The 18-wheeler and 250-mile ranged Freightliner eCascadia is meant for regional deliveries and port services. Further, the company announced an investment of more than €2.5 billion to develop its truck operations to be used throughout 2018 and 2019.
In the past three months, Daimler’s stock has lost 14.5%, underperforming 9.9% decline recorded by the industry it belongs to.
Zacks Rank & Key Picks
Daimler currently carries a Zacks Rank #4 (Sell). A few better-ranked stocks in the auto space include PACCAR Inc. (PCAR - Free Report) , Navistar International Corporation (NAV - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) . PACCAR and Navistar carry a Zacks Rank #2 (Buy) while Allison Transmission sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PACCAR has an expected long-term growth rate of 10.8%. Over the past three months, shares of the company have gained 4.4%.
Navistar has an expected long-term growth rate of 5%. Shares of the company have risen 6.9% in the past three months.
Allison Transmission has an expected long-term growth rate of 10%. Over the past three months, shares of the company have gained 17.9%.
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