3 Auto Stocks Going Places: Honda’s Big Recall, Ford’s Canadian Expansion, Upgrades Charge Tesla
Honda Motor Co. (NYSE:HMC): Honda will be issuing a recall for about 405,400 vehicles in the United States, Canada, Japan, and Australia for vehicles including the Odyssey minivan over a technical glitch in the airbag system. A computer chip in the airbag control unit could malfunction when it receives electrical interference from other parts in the car and could potentially deploy inadvertently, a Honda spokesman said. No crashes related to the glitch have been reported, but several cases of injuries like abrasions on the hand and fingers have been reported, the company noted.
Ford Motor Co. (NYSE:F): Ford will be investing around $685 million in its facility in Ontario, Canada, to add production of additional models at the plant, which is already involved in the production of the Ford Edge, Ford Flex, and several Lincoln models. The next generation of the Edge and the Lincoln MKX will be assembled there.
Tesla Motors (NASDAQ:TSLA): A bullish note from Deutsche Bank has set shares of Tesla racing nearly 8 percent in trading. The bank says that “based on conversations with [management] and monitoring information available on Tesla owners’ blogs, we believe that the company is on-track to modestly outperform Q3 margin expectations, that demand has continued to grow in the US and Europe.” Recent price hikes on options have also had little to no effect on Model S demand, while 22 percent of the company’s float remains shorted. The bank has a $200 price target on Tesla shares.