French carmaker Renault SA (RNLSY - Free Report) and Japanese automaker Nissan Motor Co., Ltd. (NSANY - Free Report) entered a partnership with German automaker Daimler AG (DDAIF - Free Report) for autonomous vehicles technology and mobility services, per Reuters. This partnership is in sync with strategies adopted by top automakers across the globe for the development and production of autonomous vehicles.
Though the development of electric and autonomous vehicles is presently at the early stage, its demand is growing steadily. Moreover, high price of oil has worked in favor of development of electric vehicles. However, the auto industry has not yet been able to meet growing demand for zero-emission cars due to lack of availability of electric motors and battery cells.
This opened up opportunities and created challenges for automakers from all over the world. As stated by Carlos Ghosn, chairman and CEO of Renault-Nissan-Mitsubishi Alliance, “the industry being in transformation in the area of connectivity, autonomous cars and connected services, there are plenty of areas of cooperation for our entities”.
This new situation has set up an ideal platform for the automakers to explore and experiment various options with respect to battery research in order to find out the best solution for the upcoming autonomous future.
Over the past six months, shares of Nissan, Daimler and Renault have decreased 12.4%, 18.9% and 30.5% respectively.
Zacks Rank & Stocks to Consider
While both Nissan and Renault currently have a Zacks Rank #3 (Hold), Daimler carries a Zacks Rank #4 (Sell). Daimler, Renault and Nissan have expected long-term growth rates of 2.8%, 3.5% and 4%, respectively.
One better-ranked stock in the auto space is Geely Automobile Holdings Ltd. (GELYY - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Geely Automobile has an expected long-term growth rate of 11%. Over the past two years, shares of the company have increased 94.6%.
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