3 Auto Stocks Going Places: GM’s Global Report, Tesla Sinks on Goldman Treatment, and Industry Eyes Turn to Toyota
General Motors (NYSE:GM): Strong U.S. and Chinese demand has led to a 4 percent gain in global sales for the automaker, with over 4.85 million cars and light trucks sold in the first half of the year, pulling ahead of Volkswagen for sales volume. By region, North America is up 7.7 percent to over 1.64 million, with the U.S. up 8 percent to 1.42 million. International sales increased 7 percent to 1.92 million, with China’s sales up 11 percent to a record 1.57 million. However, Europe fell another 6.5 percent to just above 797,000, while South America’s numbers slid 1 percent to almost 497,000.
Tesla Motors (NASDAQ:TSLA): Northland Securities’ bullish price target of $230 isn’t swaying Patrick Archambault at Goldman Sachs, who believes that the bull scenario involves a 3.5 percent global market share in the entry and mid-luxury categories, equating 200,000 units sold with a 15.2 percent operating margin, and yielding a per share value of $113. In a worst case scenario, Goldman sees the shares at $58.
Toyota Motor Co. (NYSE:TM): The release of GM’s U.S. sales numbers has shifted eyes back to Toyota, which faltered slightly, moving 1.1 million vehicles during the first half of the year in contrast to the 1.4 million sold by GM. The figures are still good for a 6.7 percent gain, and Toyota is expected to release global sales figures later this month. However, a crippling image problem in China might see Toyota take a back seat to GM, as the country proves to be one of the most valuable foreign assets in the auto industry.