3 Auto Stocks Going Places: GM’s Indian Recall, Tesla’s Booming Sales, Toyota’s Australian Dilemma
General Motors Co. (NYSE:GM): closing prize $34.14
GM announced that it will be recalling 4,000 Chevrolet Sail vehicles in India to repair a faulty engine part. The recall, which is the latest in a string of issues for the automaker in India, will repair a problem with the crankshaft hub bolt that can potentially affect performance, but does not have any safety ramifications.
Tesla Motors (NASDAQ:TSLA):closing prize $168.94
Tesla’s Model S has seen booming sales, placing a strain on the parts suppliers of the company. Especially problematic for suppliers is the lithium ion battery that the car uses — one of the largest such batteries in a widely made automobile — that has already caused a notable worldwide jump in battery production. Tesla is on track to have produced 21,000 copies of the car by the end of this year, a far cry from the conservative 3,000 vehicle estimates some analysts projected upon the car’s release.
Toyota (NYSE:TM):closing prize $124.30
Toyota will have to decide what to do with its Australian automobile manufacturing after the results of the upcoming election on September 7th. While Prime Minister Kevin Rudd has promised massive aid to the auto industry to manufacture in Australia, opposition leader and current polling favorite Tony Abbott has declared his intent to make cuts, claiming that there is no need for subsidies to have a strong automotive industry in the country. The rise of the Australian dollar, the need for volume, and a shift to Asian manufacturing have driven downauto manufacturing in the country.
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