July 30, 2021
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Towing company agrees to pay troops for illegally selling their vehicles
Sangamon County Board to vote on first phase of transportation center
This Is the Deadliest Car in the U.S., According to Data
Charleston’s Ashley River bicycle-pedestrian bridge project making strides | News
HAAH Automotive Goes Bust, Abandons Plans To Import Chinese Cars To America
These Cars Are Out of Production and Discontinued for 2022
Bouchard Transportation’s Tugs and Barges Auctioned Off
Car chip shortage to abate, smartphones could be next: industry execs
New York Jets assistant coach dies following bicycle accident
Lightyear One Electric Sedan To Be Produced By Valmet Automotive
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Towing company agrees to pay troops for illegally selling their vehicles Sangamon County Board to vote on first phase of transportation center This Is the Deadliest Car in the U.S., According to Data Charleston’s Ashley River bicycle-pedestrian bridge project making strides | News HAAH Automotive Goes Bust, Abandons Plans To Import Chinese Cars To America These Cars Are Out of Production and Discontinued for 2022 Bouchard Transportation’s Tugs and Barges Auctioned Off Car chip shortage to abate, smartphones could be next: industry execs New York Jets assistant coach dies following bicycle accident Lightyear One Electric Sedan To Be Produced By Valmet Automotive
Jul
2021
22

EV Stocks Could Fly This Summer

While the EV boom has been growing for years, 2021 could be the year electric starts to take over everything.

And it could happen much sooner than most people realize, as some of the biggest names are already hopping on board.

Amazon has already started making deliveries with electric vans in Los Angeles, as they’ve agreed to purchase 100,000 vans from EV startup, Rivian.

Rivian

The United States Postal Service just signed a 10-year, multi-billion dollar contract with Oshkosh Defense to produce thousands of electric mail trucks.

Mail

Mail

And United Airlines just placed an incredible $1 billion order with EV manufacturer, Archer, for a fleet of electric air taxis.

Plane

Plane

Legacy automakers are all making the shift too, rolling out their line of electric vehicles one by one.

Ford is set to double their investment in EVs to $22 billion, and they’re planning to release their electric version of the Mustang and the F-150, the most popular vehicle in the U.S.

Volkswagen is calling their 2021 electric crossover, the ID.4, “the most important new Volkswagen debut since the Beetle.”

And General Motors has even announced they’ll stop making gas-powered vehicles altogether by 2035.

Now, Biden has even announced plans to transition all government fleet vehicles to EVs.

This electric revolution has already led to monster gains for EV companies throughout 2020.

The EV van startup, Workhorse, saw gains of over 551%

Tesla’s shares shot up a massive 740%

And Blink Charging soared for incredible 1,740% gains last year.

Now, many investors are looking ahead for the next big thing in the EV markets.

And one Canadian company in EV related business has seen its momentum building steadily over the last year.

Facedrive (TSXV:FD,OTC:FDVRF) has been acquiring key pieces left and right, adding them to their electric ecosystem alongside their signature ridesharing service.

With these acquisitions, they’ve brought the EV boom into food delivery, car subscriptions, and more.

And now that Facedrive has announced a major government investment in their technology, their business could be set to take off in 2021.

Here are 3 reasons why you should be paying attention to Facedrive:

1 – Bringing EVs to the Gig Economy

Many of the biggest EV stories of late have come from either the automakers rolling out new models or companies working on building out the infrastructure…

But Facedrive is taking a different approach.

Instead, they’re using the cars those automakers have already made and turning them into an entire EV-related ecosystem.

So just like Uber has built their $96 billion business off leveraging cars they never manufactured, bought, or sold…

Facedrive connects customers looking to hail a ride, providing an eco-friendly solution.

Their model is simple.

When customers request a ride, they get their pick between riding to their destination in a standard gas-powered car, a hybrid or an electric vehicle (for no extra charge to them).

Then Facedrive’s algorithm crunches the numbers, setting aside a portion

Apr
2021
5

Best Auto Stocks to Buy in 2021

How do you evaluate an automotive stock?

Automotive stocks fall into the consumer durables sector. This sector includes companies that make products for consumers that are intended to last for more than a few years, like washing machines, furniture — and cars and trucks.

Before investing in automotive stocks, it’s important to understand how economic cycles affect automotive companies and how these companies work to maximize profits and stay competitive during good and bad economic times.

Understand the auto sales cycle

Automakers and their suppliers are cyclical stocks, meaning that their profits rise and fall with consumer confidence. It’s easy to see why: When businesses and consumers are worried about the economy, they postpone buying new vehicles.

Auto sales’ cyclicality matters to investors because:

  • Automakers have high fixed costs, including their factories, tooling, logistics networks, and labor contracts. These bills have to be paid no matter how many cars get sold.
  • Automakers and suppliers also need to spend a lot on product development to ensure that they have a steady stream of competitive new products.
  • High costs and steady spending mean that profit margins in the automotive industry tend to be low, even during good economic times.
  • When sales slump, as in a recession, automotive companies’ profits fall sharply — putting future-product spending and the companies’ future competitiveness at risk.

Cash reserve

Most automotive companies cut future-product spending sharply during the 2008-2009 recession. The few that didn’t, including Ford and Hyundai, had fresh products in their showrooms when the recovery began and were able to gain market share.

That was an important lesson for the industry. Now most global automakers have substantial cash hoards — $20 billion is common — to keep future-product efforts running through the next recession, whenever it arrives.

Many automotive companies also pay dividends to their shareholders. Some automakers planned to use their cash reserves to continue to pay dividends during a recession, but during the COVID-19 pandemic, Ford and General Motors both suspended their dividends to conserve cash.

Competition

Generally speaking, the automaker with the newest products will get the highest prices and the best profits. Automakers must invest constantly to ensure that they have a steady flow of new products in their pipelines.

Nowadays, virtually all automakers and many parts suppliers are also making big investments in future technologies like electric vehicles and autonomous driving systems. Most experts believe that those technologies will be necessary for automakers if they are to stay competitive in the not-too-distant future.

Electric vehicles

Some of the most exciting opportunities of the next few years will involve manufacturers of electric vehicles. Electric vehicles are new and different, and most analysts expect them to largely displace internal-combustion vehicles over time.

Electric-vehicle companies might see high growth, which is exciting for investors. But it’s important to remember that the processes involved in developing and manufacturing electric vehicles aren’t all that different from those used by makers of traditional internal-combustion vehicles. That means electric-vehicle manufacturers face high costs just like traditional automakers.

May
2020
4

Automotive Stocks Gear Up To Fight COVID-19

Major automotive and auto component manufacturers have seen their stock prices decline by an average of over -30% year-to-date, due to the Coronavirus pandemic. While General Motors stock is down by about -41% year-to-date, Ford is down by -47%. However, Tesla has bucked the trend, rising 68%. The health crisis has meant people really don’t need to drive much right now, and not many are buying new cars either. Irrespective of what local and country governments prescribe or guide, we don’t believe this is likely to change in a hurry. Discretionary spending is likely to drop as the economy slips into a recession, impacting auto sales.

Though steep declines have happened, more pain and declines are possible in the coming weeks as earnings and accompanying guidance confirm the bad on-the-ground situation. That said, given the U.S Federal Reserve’s backing, most of the companies should survive. All said, it might be wise to wait to invest in the theme, however brave investors could choose to invest a fraction into the theme now, still keeping funds ready if things unfold for the worse in the coming weeks and months. As part of our theme: Autos Fight COVID-19, we discuss further our analysis of the recent performance of key automotive stocks, the survival risks the key auto names face, and the potential downside.

Performance Summary

Our Automobile portfolio of 10 stocks including Ford, General Motors, Tesla, Navistar, Harley Davidson
HOG
, Advance Wabco, and Lear, shows an average decline of about -2% in the last five trading days (through April 23) compared with a -1.5% decline in the S&P 500 over the same period. Year-to-date, the portfolio is down by about -21% (or over -30% excluding Tesla), compared to about -14% for the S&P 500. Harley Davidson and Ford were the worst performers, posting declines of about -50% and -47% respectively year-to-date. On the other hand, Tesla has soared 68% year-to-date while Wabco Holdings, an auto components manufacturer, has seen its stock remain relatively flat. Overall, there is a significant variance and summarized on the dashboard Autos Fight COVID-19

Survival Check

We dive a little deeper to look at the vulnerability of key automotive players through the current downturn. Our analysis Can GM survive the crash indicates that with over $19 billion in cash in hand, General Motors will have a relatively low probability of bankruptcy. On the other hand, Advance Auto Parts, which has higher relative fixed costs and a lower cash balance faces more uncertainty. The company recently issued $500 million in notes to better manage its liquidity. View our analysis Advance Auto Parts: A COVID Recession can consume $513 Mil in cash during 2020 for more details on how a demand shock will impact the company’s financials and cash flows.

How Low Can Automotive Stocks Go?

Automotive stocks could be poised

Apr
2020
10

The Department of Transportation Just Gave Airline Stocks 3 Huge Wins

After President Trump signed the $2 trillion coronavirus relief package into law on March 27, executives from the top passenger airlines like Southwest Airlines (NYSE:LUV)Delta Air Lines (NYSE:DAL), and American Airlines Group (NASDAQ:AAL) probably breathed sighs of relief. After all, the new law gave them $25 billion in bailout funds to help maintain payroll and another $25 billion in loans earmarked for the industry. 

But three days later, they likely got nervous again, as the Treasury Department issued guidelines for companies that receive that money. In particular, a rule requiring recipients to maintain existing levels of service had some industry insiders worried that they’d have to continue operating expensive empty or near-empty flights to qualify.

Luckily, on March 28, the U.S. Department of Transportation weighed in with new guidelines, which ought to make the airlines — and their investors — relieved again (well, as much as possible in the current economic environment)! Specifically, the guidelines contained three big wins for the industry. Here’s what they were and why they’re important.

A Boeing 787 airplane in flight.

Image source: Getty Images.

Win No. 1: Route consolidation lite

Many airlines have been hoping to get the green light to consolidate routes without penalty. True route consolidation involves removing most of the flights on a particular route — say, Boston to New York City — and allowing multiple carriers to book seats on the remaining flight or flights, which are operated by just one carrier.

So, for example, if every carrier normally operates three flights a day (morning, afternoon, and evening) from Boston to New York, but there’s only enough demand for two flights total per day, maybe Southwest operates a morning flight, Delta operates an evening flight, and any other carrier that used to operate that route could sell tickets through its website on one of those two flights.

The guidelines don’t go quite that far, but they do allow carriers to consolidate flights to a single airport in each city they serve. So in the above example, if American Airlines flew into LaGuardia, Kennedy, and Newark airports — all of which serve New York — it could cut down its flights to just one of those airports and still satisfy the Treasury Department’s “existing levels of service” requirement.

Win No. 2: Spreading out the schedule

The Transportation Department is generously interpreting “service to” a city as any flight from anywhere into that city. It has also imposed the following “tiers” of service obligations:

If, at the end of February, an airline served a city: To maintain its service obligation, it must now offer at least:
With at least one flight on at least five days per week, One flight per day, five days per week.
Less than five days per week One flight per week.

Data source: Department of Transportation.

So, as the DOT says in a footnote, “For example, if a carrier operated seven flights per day, seven days per week to a given point, it would only be required to operate one