A Window Into A Driverless Future: From Science Fiction To Reality

This article was first published by Seeking Alpha as Editor’s Pick on January 5, 2015

By Sarfaraz A. Khan. Research Asst. Adnan Mushtaq

Self-driving cars have captured the imagination of Hollywood for decades, but it could become a reality in the next five years, said Karl Brauer, senior analyst at Kelley Blue Book's KBB.com, in an email interview.

Hydrogen Under the Hood at Toyota

This article was originally published by TheStreet and also appeared on Yahoo! Finance

By Sarfaraz A. Khan February 23, 2014

NEW YORK (TheStreet) -- The world's leading automaker Toyota (TM_) is expecting record annual profits due partly to sales and partly to weakness in the yen. Its fuel-efficient hybrid cars continue to grow their already massive sales. In the meantime, while some of the leading vehicle manufacturers have been trying to capitalize on the increasing demand for electric vehicles like those created by Tesla Motors (TSLA_), Toyota on the other hand has been increasing its focus on its hydrogen-powered cars.

On Tuesday, the company reported more than fivefold year-over-year increase in quarterly profits to $5.2 billion. For the full fiscal year, Toyota is targeting net income of $18.8 billion, which would show around 100% increase from net income of $9.5 billion in the previous fiscal year. This would come from sale of 9.98 million vehicles in 2013, more than any other automaker in the world.

Moreover, Toyota plans to retain the crown as the world's best-selling automaker by selling 10.32 million cars in 2014. Some of this increase in sales can be attributed to the popularity of its fuel-efficient hybrid vehicles. They have given a boost to sales in regions like Europe where competitors have struggled.

Despite the positive outlook, Toyota's shares dropped by more than 5% due to the strength of the yen and an expected drop in sales in North America by 30,000 units in the current fiscal year. As a result, Toyota's shares closed at $112.75 on Monday and are trading just 12.9 times their trailing earnings and just 0.85 times their trailing sales.

I believe that is cheap for a blue chip stock with industry-leading sales volume.

Don’t Sell Tesla – Here’s Why

After thoroughly shaking the American automobile industry this year, the electric car maker Tesla Motors (NASDAQ:TSLA) is now out to establish itself in the world’s largest automobile market, China. Meanwhile, the company is eying uptake in production from its California factory as it aims to capitalize on the excess demand. Its recent Q3 report disappointed investors, despite the better than expected performance in terms of revenues and income.

However, its entry in China, its updated production plans, and the expected launch of the Model-E, the mass market vehicle in just 13 months, have shown that the business will continue growing its top and bottom line in the coming quarters. The company is laying foundations for significant growth in domestic and international markets. Read full article at GuruFocus