Nissan Motor Co. (NSANY - Free Report) has announced that its premium brand, Infiniti, will come out with the first electric vehicle in around three years, per Reuters. The sporty electric sedan will be produced in China, which holds a lot of promise for electric vehicles. It is expected that the e-sedan would be on a new flexible architecture, which will be very useful for accommodating electrified powertrains. Also, its interior design will be considerably different from current models.
This move is in sync with this Japanese automaker’s long-term strategy to electrify the product line up on a massive scale. Previously, Nissan revealed the plan to make Infiniti, predominantly an electrified offering. From 2021 onward, all vehicles under the Infiniti brand will be either an all-electric vehicle or of e-Power version.
Intensified competition in the electric car market in China led startups as well as established players to launch several vehicle models. In order to comply with official quotas, automakers in China are raising the production of new-energy vehicles, either battery electric cars or plug-in electric hybrids. The proposed e-sedans from Nissan are likely to face competition from established players.
Shares of Nissan have outperformed the industry it belongs to in the past three months. Over this time frame, it has gained 0.1% against the industry’s decline of 1.7%.
Zacks Rank & Stocks to Consider
Nissan currently carries a Zacks Rank #4 (Sell). A few better-ranked stocks in the broader auto sector are Geely Automobile Holdings Ltd. (GELYY - Free Report) , Ferrari N.V. (RACE - Free Report) and Fox Factory Holding Corp. (FOXF - Free Report) . While Geely currently sports a Zacks Rank #1 (Strong Buy), Ferrari and Fox Factory carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Geely’ long-term growth rate is projected at 7%. Over the past three months, shares of the company have gained 54.2%.
Ferrari has an expected long-term growth rate of 18.5%. Shares of the company have gained 23.1% over the past three months.
Fox Factory has an expected long-term growth rate of 15.1%. Over the past three months, shares of the company have risen 18%.
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