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

The World's Biggest Auto Market Is Gearing Up For General Motor's Onslaught

By Sarfaraz A. Khan and Mehreen Tanveer

General Motors is planning for a major push in the Chinese market with an onslaught of SUVs and Cadillacs n the back of a massive $11 billion investment plan through 2016. 

General Motors (NYSE:GM) is one of the leading global vehicle manufacturers that not only dominates North America but also the emerging markets, particularly the BRIC nations where it is one of the leading foreign players with significant market share. In its previous quarterly results, GM earned more than 60% of its revenues from North America while the rest came from Europe, South America and other international operations (including China).

(Figure 1)

August Growth: GM and China

In the previous month (August), GM reported its best monthly sales numbers since the global financial crisis of 2008. On an year-over-year basis, total vehicle sales in the U.S rose by 14.7% to 275,847 vehicles while retail sales rose 22.1% to 220,958 vehicles. The sales of crossover, full-size pickups and large SUVs rose 34%, 15% and 29% respectively. Moreover, new product launches and modifications after 2010 of Chevrolet Volt, Chevrolet Spark, Chevrolet Sonic, Cadillac XTS, and Buick Verano have strengthened the company's position.

Meanwhile, China has continued its recovery from the global financial crisis which is translating into increasing demand for vehicles. In August 2013, sale of non-commercial vehicles rose by 11% to 1.35 million as compared to 1.22 million last year, according to data provided by China Association of Automobile Manufacturers.

The 11% growth shows a record increase from 10.5% in July and 9.3% in June 2013. The increasing levels of income and low car ownership rates have propelled the demand of vehicles in the country's … read full article with images at Seeking Alpha.

Audi vs. Mercedes: Who is Winning?

From: The Motley Fool

Two of the leading German car makers, Daimler AG (NASDAQOTH: DDAIF.PK) and Volkswagen AG (NASDAQOTH: VLKAY), have reported massive drops in profits in their most recent earnings releases. Daimler is the world’s third biggest luxury car-marker and the owner of the iconic Mercedes brand of cars and trucks. Volkswagen, the parent of Audi and the maker of the Beetle, has been eying global expansion, particularly in China, as it aims to compete with the big boys of the auto industry such as General Motors and Toyota. While Mercedes barely managed to increase its total car sales, Audi posted rising unit sales in almost all of its markets as the latter widened its lead over the former from 7,802 cars in Q1 2012 to 27,090 cars in Q1 2013.