Tesla CEO Elon Musk visited China last week to attend the World Artificial Intelligence Conference. He also visited Tesla’s Gigafactory in the country.
In 1Q17, Fiat Chrysler’s (FCAU) shipments in the European market rose 11.8% to 340,000 vehicle units, from 304,000 units in the corresponding quarter of 2016.
After North America, Europe is the second-largest market for US auto giants GM and Ford. In 3Q16, the region accounted for ~9.9% of GM’s total revenue.
While Greater China accounted for just 9% of the company’s total shipments, it’s still strategically important for Ferrari due to China’s future growth potential.
The minister has also stated that FDI inflows to India (EPI) (IFN) rose by a whopping 46% during October 2014 to May 2016 in response to the “Make in India” campaign, which launched in September 2014.
The Vanguard European Stock Index Fund’s assets were spread across a staggering 1,250 stocks as of June 2016, and it was managing assets worth $17.8 billion.
The Vanguard European Stock Index Fund – Investor Shares’ (VEURX) assets were spread across a staggering 1,249 stocks as of March 2016. It was managing assets worth $19.0 billion.
The Ifo Business Climate Index for Germany rebounded in March from a 14-month low in February. It rose to 106.7 in March—compared to 105.7 in February.
Car2go is the largest car-sharing service provider in the world. It could be seen as the biggest competition for GM’s ambitious car-sharing program, along with Uber and Zipcar.
In January 2016, General Motors entered into a strategic alliance with Lyft, a car-sharing service. This could be seen as a hedge against a possible downturn in the US auto demand.
Germany’s CPI rose to 0.4% in February compared to a fall of 0.8% in January. The increase in CPI indicates an increase in the price of goods and services.
Germany’s industrial production stood at 3.3% for the month of January 2016 compared to a fall of 0.3% for the month of December 2015, according to the Federal Statistical Office.
Since General Motors’ beginning, North America has been its most important market. North America alone accounted for ~70% of GM’s total revenues in 2015.
In the current global scenario, the possibility of further devaluation of the Chinese yuan is a major concern for global equity markets. The Chinese PMI data released on January 31, 2016, indicated a slowdown in the Chinese economy.
Being a fairly new automaker, Tesla Motors’ valuation multiples are not comparable with other industry giants such as Ford, General Motors, and Toyota.
Tesla (TSLA) has industry-leading gross margins, which are better than those of other auto industry giants such as Ford Motor Company and General Motors.
Germany’s services business activity index declined by 1.0 points in January to 55.0. The composite PMI output index fell to 54.5 in January against 55.5 in December 2015.
The service sector grew at a slow rate in the Eurozone in January. The Eurozone services business activity index stood at 53.6 in January, compared to 54.2 in December 2015.
The German economy contributes about 5.5% toward global gross domestic product, and the manufacturing sector accounts for 23% of the country’s economy.
With the reading above neutral, the Eurozone continued its upturn in business activity. Though at a 12-month low, the services PMI rose to 53.6 in January
FEZ’s auto manufacturing industry provided a return of 0.13% on January 19. Volkswagen, Daimler, and BMW returned -0.02%, 0.78%, and -0.34%, respectively.
The European economy currently faces a major problem known as a migration crisis. It could increase pressure on government spending in different EU nations.
Overview of FEZ’s performance on January 13 As we discussed previously in this series, as global growth worries weighed on the market during the previous day’s trading, global markets fell drastically on Wednesday, January 13, 2016. The SPDR EURO STOXX 50 ETF (FEZ) and the iShares MSCI EMU Index ETF (EZU) returned 2.08%, and 1.97%, […]
On Wednesday, January 13, 2016, the stocks at the bottom of the SPDR Euro STOXX 50 ETF (FEZ) were BMW, Daimler (DDAIF), Deutsche Bank (DB), SAP (SAP), and Siemens (SIEGY).
Germany’s trade surplus stood at 20.6 billion euros in November 2015. It rose by 3.2 billion euros, or 18.4%, from 17.4 billion euros in November 2014.
Ferrari is expected to witness high growth in earnings with relatively lower leverage than the industry average. This could be a reason why Ferrari has a high forward price-to-earnings multiple.
As of March 31, 2015, Ferrari reported 164 million euros worth of cash and cash equivalents, up by nearly 22% from 134 million euros in the previous quarter.
Ferrari (RACE) is considered a symbol of power, speed, and passion by many motorsport enthusiasts. There are only a few key market players in the luxury supercar segment.
Ferrari (RACE) is one of the most prestigious brands in the automobile industry. The Italian racing and sports car manufacturer entered the business in 1947.
The performance of all major global indexes fell in the week ended January 8, 2016. All the industries and stocks of the SPDR Euro STOXX 50 ETF (FEZ) provided negative returns.
The service sector makes up about 69% of the German economy. According to Markit, Germany’s services business activity index increased by 0.4 points in December to 56.0.
On Tuesday, January 5, 2016, the auto manufacturing industry provided the highest negative return of 1.5% to the performance of the SPDR Euro STOXX 50 ETF (FEZ).
The auto manufacturing industry was the biggest loser with a negative return of 1.5% on Tuesday, January 5, 2016. Volkswagen (VLKAY) stock alone fell 2.8%.
According to Germany’s Federal Statistical Office (Destatis), Germany’s December inflation rate is expected to come in at 0.3% on a YoY (year-over-year) basis as compared to 0.4% in November 2015.
On Monday, January 4, 2016, China’s Shanghai Composite Index fell a huge 7%, sending jitters throughout the global market. It came on the back of fresh fears over China’s economic growth.
On January 3, 2016, Tesla Motors (TSLA) reported delivery of 17,400 vehicles in 4Q15. That was the highest number of deliveries for a single quarter so far.
The EU’s (European Union) major economies like France (EWQ), Germany (EWG), and the United Kingdom (EWU) could witness a growth rate of 1% or more in 2016.
Anheuser-Busch (BUD) provided the positive return of 22% in FEZ in 2015. Currently, the stock is trading at 114.6 euros. Its 52-week high is 119.65 euros.
The auto manufacturer industry provided the second-highest return of 1.7% on Thursday, December 24, 2015. Volkswagen (VLKAY) returned 1.4% on that day.
VEUAX fell 1.6% in November 2015 compared to the previous month. In the three- and six-month periods ended November 30, it fell 0.2% and 5.1%, respectively.
