Tesla’s Stock Smacked on Revision and 4 Auto Stocks Shifting Gears
Tesla Motors, Inc. (NASDAQ:TSLA): Elon Musk, co-founder and Chief Executive Officer of Tesla Motors, Inc. declined to confirm whether the electric-car maker will be able to meet their initial delivery target for Model S sedans this year. Tesla, which began building the luxury cars in June, will deliver 20,000 of the sedans next year and achieve a gross margin of more than 20%. Tesla reduced its forecast for revenue this year on Tuesday, due to a slowdown of its Model S sedan rollout to customers. The electric car maker’s revised revenue range is now $400 million to $440 million, lower than its previous outlook of $560 million to $600 million. Shares are down almost 10% pre-market Tuesday.
Ford Motor Co. (NYSE:F): According to Bloomberg, Ford Motor Co. employees represented by the Canadian Auto Workers Union ratified a four-year contract that eliminates most cost-of-living raises in favor of bonuses, extends the time it takes for a new employee to reach full pay and adds 600 jobs.
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General Motors Company (NYSE:GM): According to the Detroit News, General Motors Company Canadian Auto Workers Union President, Ken Lewenza, said that the union might not reach an agreement with Chrysler (FIATY) until the end of this week. Lewenza said that he anticipates bargaining will be “tough” and that the automaker “will be reluctant” to meet the pattern set by Ford (NYSE:F) and General Motors Company.
Toyota Motor Corporation (NYSE:TM): The Wall Street Journal reported that Toyota Motor Corporation plans to roll out 21 new models powered by electric-gas engines over the next few years and predicted strong sales.
Honda Motor Co., Ltd. (NYSE:HMC): Honda’s Chief Executive Officer, Takanobu Ito, recently gave a speech outlining where the company will be headed over the next five years and hybrid electric vehicles will be playing a major role. Honda will use three different hybrid systems, Ito said. First on the list is their lightweight and compact one-motor hybrid system that could take the lead in fuel economy among all hybrid vehicles. This is Honda’s current hybrid system, but there will be improvements in motor output and battery performance coupled with a newly developed transmission.
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