3 Auto Stocks Going Places: Speculation Over Ford CEO, Honda’s Hybrid Mileage, Tesla Takes a Road Trip
Ford Motor Co. (NYSE:F): Amid speculation that Ford’s board might allow an earlier exit for CEO Alan Mulally than originally anticipated, Mulally announced that he would continue to serve as CEO of the company through the end of 2014, if not longer. He told Bloomberg that he loves working for the company and that he does not plan on an early exit. Separately, Mulally believes auto sales in the U.S. will hit 17 million in the next few years as more pent-up demand is relieved.
Honda Motor Co. (NYSE:HMC): When Honda launches its new Accord hybrid, the company will be pitching the car as the industry leader for fuel economy, with its 47 miles per gallon combined rating besting its Japanese rival Camry, which manages just 41. However, those figures put it neck and neck with the Ford Fusion and its 47mpg combined rating. Ford has been under fire from buyers claiming their vehicles are not meeting the mileage expectations, though time will only tell how the Honda holds up.
Tesla Motors (NASDAQ:TSLA): CEO Elon Musk announced that he will be taking a cross-country trip in the company’s Model S sedan, squaring off with one of the largest points of contention about the EV: range. Musk will travel 3,200 miles in six days, and claims he can accomplish the feat using just 9 hours of charging during the voyage. “At 1.5 hrs/day, we will only ever need to charge when stopping anyway to eat or sightsee, never just for charging itself,” Musk tweeted. Seeking Alpha notes that “the planned trip could also be an indication that the Supercharger network is being built quicker than forecast.”