3 Auto Stocks Going Places: GM Sales Gain in China, Toyota’s Pickup Situation, and Tesla Faces a Revenue Cut
General Motors Co. (NYSE:GM): GM’s sales in China grew 11 percent in July thanks to a strong performance from the Buick brand, with gains that came after a 10.6 percent gain in June. Buick deliveries jumped 26 percent to 66,208 units, largely on the popularity of the Excelle line, while Cadillac sales surged 83 percent to 3,688. Chevrolet faltered, though, sliding 3.4 percent to 43,343. The company remains on track to nail its 3 million unit goal for the year in China.
Toyota Motor Corp. (NYSE:TM): As the U.S. debates ending a 50-year old tariff on pickup trucks, as analysis shows that the program is resulting in higher costs for consumers. Companies like Toyota and Nissan (NSANY.PK) have dodged the charges put on foreign manufacturers by building their vehicles stateside, but the tariff is now seen as being responsible for an unnecessary premium on pickups because the American brands “lack of true market competition.” Separately, Toyota has announced the discontinuation of its regular cab Tacoma pickup as the small pickup market continues to shrink.
Tesla Motors (NASDAQ:TSLA): Shares are up almost 3 percent despite a rumor that Tesla could potentially lose a source of its income in the event that the California Air Resources Board clamps down on rules that allow electric vehicle manufacturers to earn zero-emission credits. During its first quarter, Tesla earned $67.9 million in ZEV credits and another $17.1 million in “other regulatory credits,” Autoblog reports. However, the company has warned before that changes to the rules on ZEV credit presented a profit risk during the short term.