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Auto manufacturers saw a substantial increase in sales during the first half 2021, thanks to solid progress in COVID-19 vaccine and strong economic growth. The EV market is likely to continue growing due to sustainability efforts worldwide. We believe that the shares of automotive manufacturers Stellantis and Tesla (TSLA), whose prices have risen more than 6% over the last month, will continue to rise. Let’s talk.
The growth of the electric vehicle (EV) market is aided by global zero emission initiatives. As governments across the world place great emphasis on EV production and sale acceleration to achieve their sustainability goals, the near-term outlook is bright for the EV market. With a record number of EVs being registered, the EV market grew by more than 40% in 2020.
Global EV sales grew by approximately 140% in the first quarter 2021. Auto manufacturers now focus on expanding their product lines and increasing production to keep up with the growing demand. According to the International Energy Agency (IEA), the EV market will experience “healthy growth” over this decade.
Shares of Stellantis N.V. (STLA) and Tesla, Inc. (TSLA), two prominent players in the sector, have increased by more than 6% over the last month. They are expected to continue to earn significant returns in coming months.
TSLA, Palo Alto (Calif.), designs, produces, leases and sells global electric vehicles as well as energy generation and storage system. It operates two business segments, Automotive and Energy Generation and Storage.
TSLA’s fiscal second quarter ended June 30, saw a 98% increase in total revenue to $11.96 Billion. The company’s operating income grew by 301% to $1.31billion, while the non-GAAP net profit climbed 258% to $1.62billion year-over year. Non-GAAP earnings per share (EPS) increased 230% to $1.45
Analysts predict that TSLA will see its revenues rise 49.3% to $13.10 Billion in the current quarter ending September 2021. The consensus estimate of EPS for this quarter is $1.38, which represents an increase of 81.6% over the previous year. TSLA’s earnings surprises history is impressive as it has exceeded the consensus EPS estimates for three of its trailing quarters.
TSLA has gained 6.5% over the last month to trade at $686.17 yesterday. Over the last year, the stock has gained 107.8%.
Stellantis N.V. (STLA)
STLA is based in the Netherlands and designs, engineers and manufactures passenger cars, pickup trucks and SUVs. It also sells light commercial vehicles. The company offers premium and luxury vehicles as well as parts and financial services. It also provides leasing and retail financing.
STLA’s investment in Vauxhall’s Ellesmere Port production plant was announced on July 6. This will make it the first STLA facility to manufacture a fully battery-electric vehicle in commercial or passenger form by next year. It is consistent with U.K.’s 2030 ban on pure petrol- and diesel-powered vehicles. As part of sustainability efforts worldwide, the project will generate significant returns.
STLA, Hon Hai Precision Industry Co., Ltd., and its subsidiary FIH Mobile Ltd., signed a memorandum not binding to create Mobile Drive, a joint venture aimed to accelerate development timelines in order to provide innovative in-vehicle experiences. The company hopes to expand the capabilities of connected cars and offer immersive digital experiences for its customers through this partnership.
STLA’s net revenue increased by 270.2% over the past year to EUR72.61 trillion ($85.55 Billion) during the six-month fiscal period ending June 30, 2017. The net profit of STLA was EUR5.80billion ($6.83billion), an increase of 627.7% over the previous year. Over this time, its cash flow from operations was EUR5.62 trillion ($6.62 billion).
The consensus revenue estimate of $182.87 million for the fiscal year ending December 2021 shows a 12.8% rise in annual sales. The Street predicts that the company’s earnings per share will rise by 202.8% to $4.02 from the previous year.
STLA has gained 18.4% in the last month, closing yesterday’s trading session with $21.68. Over the last six months, stock shares have gained 32.8%.
After-hours trading on Tuesday saw TSLA share prices fall $1.91 or -0.29% The TSLA shares have declined 5.66% year-to-date compared to a 19.54% increase in benchmark S&P 500 during that same time.
Subhasree Kara is the author
Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics.
The post2 Auto-Manufacturers Up More Than 6% in the Past MonthThis article was first published onStockNews.com
Publiated at Tue 17 August 2021 21:09.04 +0000