Hispanolistic/E+ via Getty Images Vehicle insurance premiums have gone through the roof. That comes as no surprise to families across the country. According to the March CPI report, the 3-month annualized rate soared to 26.7%. It was a material driver of the strong core services ex-housing CPI increase. A reshuffling in the auto insurance industry,…
Luis Alvarez/DigitalVision via Getty Images By Sam Korus, Director of Research, Autonomous Technology & Robotics Since late 2023, media headlines have seized on data showing that electric vehicle (EV) sales growth decelerated in 2022 and 2023, from +113% in 2021 to +59% and +28% on a year-over-year basis, respectively. Our research contextualizes this deceleration in…
Richard Drury By Hope Crystal The U.S. agency’s final rules for vehicle emissions give manufacturers more time to transition to electric fleets, but set ambitious standards for the future. Last month, the U.S. Environmental Protection Agency announced finalized rules on vehicle emissions that will reduce air pollutants that apply to passenger cars, light-duty trucks and…
sefa ozel Li Auto (NASDAQ:LI) reported much better than expected results for the fourth quarter and the company’s outlook for Q1’24 has been quite impressive as well, causing shares to roar higher. Li Auto, which has pulled ahead of the competition in the start-up electric vehicle market, including NIO (NIO) and XPeng (XPEV), is guiding…
photoman Overview I previously rated Ally Financial (NYSE:ALLY) as a buy in October 2023. It seems that my timing was ideal, as the stock has now moved up over 46% since then. The price appreciation was more severe than anticipated and happened much quicker than expected. At the time of my original analysis, the dividend…
Robert Way Investment Thesis Although often overlooked in comparison to Tesla, Inc. (TSLA) and BYD Company Limited (OTCPK:BYDDF), Li Auto Inc. (NASDAQ:LI) has emerged as one of the leading competitors in the Chinese landscape of battery-electric vehicles (BEVs) and, most recently, all-electric vehicles (EVs). Li Auto’s strategy is quite different from its competitors, offering hybrid…
Zerbor/iStock via Getty Images By James T. Tierney, Jr. Recent labor agreements in the auto and airline industries spotlight the profitability conundrum facing US companies – and equity investors. Pricing power and cost containment are essential ingredients for companies looking to expand profit margins. We’ve seen this clearly in 2023, when some of the best-performing…
Richard Drury One of the latest entrants in the public equity markets from the auto manufacturers industry is VinFast Auto Ltd. (NASDAQ:VFS). This Vietnam-based electric vehicle company went public in August and after a quick rip up to $93 per share, the stock has since fallen about 95% from its all-time high just a few…
Auto Trader Group plc (OTCPK:ATDRY) Q2 2024 Earnings Conference Call November 9, 2023 4:30 AM ET Company Participants Nathan Coe – Chief Executive Officer James Warner – Chief Financial Officer Catherine Faiers – Chief Operating Officer Conference Call Participants William Packer – BNP Paribas Exane Andrew Ross – Barclays Sean Kealy – Panmure Gordon Pete-Veikko…
golfcphoto Those who can, pay cash to avoid the interest rates. Subprime credit tightens substantially. The balance of auto loans and leases rose by 0.8% in Q3 from Q2, and by 4.7% year-over-year, to 1.60 trillion, driven by financing of new vehicles, according to data from the New York Fed’s Household Debt and Credit Report….
UniqueMotionGraphics Chinese electric vehicle companies have seen a significant improvement in their delivery prospects in the last two months. Companies that benefit from the unleashing of pent-up demand include Li Auto (NASDAQ:LI), NIO (NIO) and XPeng (XPEV). As a result, Li Auto has meaningful (vehicle margin) surprise potential when it presents Q3’23 earnings. Vehicle margins…
Milan Markovic/E+ via Getty Images We’re upgrading Tesla, Inc. (NASDAQ:TSLA) to a hold from a sell. We continue to be cautious about the auto industry in 2H23 but expect Tesla will fare better than the peer group in Q4 2023 and 1H24 with its model 3 and Y upgrades. Our previous concerns about the company’s…
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Ethan Miller/Getty Images News Investment Thesis Qualcomm (NASDAQ:QCOM) is an American semiconductor firm specializing in mobile and IoT technologies. QCOM saw a pullback in 3Q23 amid weaker-than-expected results and headwinds. Despite this, it remains a market leader, paying a 2.8% dividend yield. The investment case has been reinforced with the renewal of the Apple (AAPL)…
Richard Drury Three investment return trends related to the green transition concern me. These apply across all sectors but to automotive in particular. Here is how I see it. 1. Pricing is challenging. The strong automotive demand during the COVID-19 pandemic was fueled largely by wealthier customers and is on the wane, especially for electric…
Tesla is likely to decide on a breakthrough method of die casting multiple sections of its EVs to reduce cost and improve production. Tesla Inc (NASDAQ: TSLA) has reportedly figured out a technological breakthrough that will transform the process of making electric vehicles. Fine-tuning the process will help Tesla cut production costs considerably. Tesla stock…
SARINYAPINNGAM A Quick Take On EverQuote EverQuote, Inc. (NASDAQ:EVER) provides online consumer insurance shopping and lead generation for insurance carriers and agents. I previously wrote about EVER with a Buy outlook, before management’s surprise announcement it was exiting the health insurance business segment. Given materially declining revenue and management’s assumption of a “lower for longer”…
vadimguzhva/iStock via Getty Images Shares of Advance Auto Parts (NYSE:AAP) have been a poor performer over the past year as the company’s shift to prioritizing its own brands has gone poorly, costing it market share and causing margins to contract. Shares fell another 7% on Tuesday as S&P downgraded AAP into “junk territory,” which may…
Joe Raedle By Breakingviews Strikes at Detroit’s automakers could hit the brakes on Carvana’s (CVNA) turnaround. The $10 billion used-vehicle vendor’s share price has increased nearly 10-fold this year as profitability improved. That’s partly because it’s paying less to acquire old cars to list on its marketplace. An industry-wide shutdown could reverse that trend, threatening…
Adam Berry Vietnamese electric vehicle manufacturer, VinFast Auto (NASDAQ:VFS) has grabbed the attention of mainstream media following the company’s surprising entry into the US stock market. Euphoria surrounding its stock price seem to be at odds with the potential of the company, raising questions about its soaring valuation and the sustainability of its business model….
Li Auto, Xpeng, and other Chinese EV companies hit good numbers for deliveries, scaling YoY and Month over Month numbers. Chinese electric vehicle makers Li Auto (NASDAQ: LI), Nio (NYSE: NIO, and Xpeng Inc (HK: 9868) announced that their vehicle deliveries for the month of August were in line with guidance set for the third quarter of 2023….
martin-dm Investment Thesis Since its foundation in 2015, Li Auto (NASDAQ:LI) has swiftly positioned itself as a leader in the Chinese EV market. The company adopts a unique approach to tackling range anxiety and charging inconvenience through ‘range extenders’, which are small gasoline engines that generate electricity to power its SUV’s battery when an EV…