January 29, 2024 | Daily JAM, F, GM, Mid Term, TSLA, Videos |
Today’s Trend of the Week video is Bad News from Tesla is even worse news for other electric vehicle companies. On January 24, after the close, Tesla announced a slight miss on their earnings report. Guidance was rather sparse but grim. Sales grew at about 38% in 2023, well below the 50% target that Tesla regularly touts. The 2024 guidance is even below that, (Wall Street estimates 24%). While this isn’t great for Tesla, it’s much worse for companies like Ford, GM and Volkswagen who are trying to figure out how much to spend and when to build market share for electric vehicles. The companies have been using estimates based on Tesla likely prices and profit margins in order to build their own projectors for their own profitability in  electric vehicles. Those estimates, thanks to recent guidance from Tesla, appear to badly outdated, especially if Tesla is considering cutting prices again. Now companies like GM and Ford will have to decide how much pain, and for how long, they’re willing to take in order to get into this market.
January 15, 2024 | Daily JAM, Mid Term |
Hertz (HTZ) plans to sell a third of its U.S. electric vehicle fleet and reinvest in gas-powered cars. The company says the shift is due to weak demand and high repair costs for its electric vehicle fleet. Which is dominated by Telsa’s electric vehicles. Electric vehicles make up about 11% of the Hertz fleet and 80% of those electric vehicles are Tesla. The news certainly isn’t a plus for electric cars and electric car makers. But I think it’s also important not to forget that Hertz is struggling to show improvements to its bottom line. Tesla’s price cuts–and their effect the resale value of the Hertz fleet–may have more to do with this abrupt about face than weak demand and higher repair costs.
November 29, 2023 | Daily JAM, GM, Jubak Picks, Stock Alerts |
Shares of General Motors (GM) are up 11.39% today, November 29, on news that the company will boost its dividend by 33% (to 12 cents a share from 9 cents) and repurchase $10 billion of shares. I’m selling my position in the stock in my 12-18 month Jubak Picks Portfolio. That position is now down 10.03% since I added it to the portfolio on October 4, 2022. I don’t see anything in this report that changes the fundamentals of GM’s car business. Yes, the company demonstrates today with its biggest-ever buyback plan that its legacy gas-powered vehicle business throws off tremendous amounts of cash. Now. But the company has pulled back on many of the expensive investments that would have brought GM into the electric vehicle future.
October 30, 2023 | Daily JAM, F, GM, Jubak Picks |
I added Step #7 to my Special report: 8 Steps to Protect Your Portfolio from the Global Debt Bomb today. And my advice is to sell Ford and General Motors sometime between now and before the December 13 meeting of the Federal Reserve. Here’s what I wrote in that Special Report.
October 24, 2023 | AAPL, ALB, CAT, Daily JAM, DE, Dividend Income, DUK, F, GM, Jubak Picks, Mid Term, NI, SCCO, Short Term, Special Reports, Top 50 Stocks |
I’ve hi-lighted the key characteristics of the coming global debt bomb explosion that investors MUST include in any plan to protect a portfolio from the explosion of this bomb.
October 12, 2023 | Daily JAM, F, GM, Jubak Picks, VWAPY |
In the third quarter electric vehicle sales in the United States jumped to more than 300,000 for the first time, Cox Automotive reported today. Electric vehicle sales were up 50% year over year in the quarter. And electric vehicles made up 7.9% of total industry sales. It’s not surprising that as vehicle sales volumes have surged, market leader Tesla (TSLA) has lost market share.
January 31, 2023 | Daily JAM, Jubak Picks |
General Motors (GM) shares are up 8.34% as of the close today after the company reported a huge jump in earnings for the fourth quarter and the full year. For the quarter the car company reported adjusted earnings per share of $2.12 versus an expected $1.69, and revenue of $43.1 billion versus an expected $40 billion. Revenue grew by 28% year over year. For the full year, GM reported EBIT profit of $14.5 billion, near the high end of its forecast of $13 billion to $15 billion.
January 29, 2023 | Daily JAM, Millennial, Volatility |
An 11% rally in a sector leader, like Tesla (TSLA) on Friday translated into a jump in other stocks in the sector. But not all equally. The move was most clearly concentrated in shares of electric vehicle charging stocks.
January 3, 2023 | Daily JAM, F, GM, Jubak Picks |
Tesla (TSLA) can’t win for winning. On Monday, while U.S. markets were, fortunately, closed, the company reported record quarterly deliveries for the fourth quarter of 2022 of 405,278 cars. Unfortunately, Tesla had convinced Wall Street to look for delivery of 420,7690 cars. So even record deliveries amount to a miss. For a third straight quarter, Tesla’s deliveries missed company and Wall Street projections. The company saw deliveries rise 40% in 2022, but that too was short of the 50% growth targeted by the company. As of the close today, January 3, Tesla shares were down 12.24%
November 18, 2022 | Daily JAM, GM, Jubak Picks |
Granted it’s only a forecast, but yesterday General Motors (GM) forecast that its electric vehicle models will start generating a profit in 2025. The company now projects free cash flow of as much as $11 billion, compared with prior guidance of $7 billion to $9 billion. Electric-vehicle sales should top $50 billion in 2025, GM said. The Detroit-based company plans to build 400,000 EVs in North America from 2022 through the first half of 2024. Production capacity will reach 1 million units annually in North America in 2025. By 2025, its family of electric crossover SUVs, pickups, and luxury models will compete in segments that represent about 70% of the electric vehicle industry volume, the company projects.
November 1, 2022 | Daily JAM, Videos |
Today I posted my one-hundred-ninety-ninth YouTube video: Quick Pick General Motors. This week’s Quick Pick is General Motors (NYSE: GM). On Monday morning, October 25, GM announced third-quarter revenue earnings of $41.89 billion-slightly below the $42 billion that Wall Street was expecting, but still a record high for General Motors. The adjusted earnings of $2.25 per share killed Wall Street estimates of $1.89. Additionally, GM confirmed its full-year earnings guidance of $13 to $15 billion for the year. That’s extremely reassuring for a market wary of a possible recession. The Chevy Bolt is back (after a previous halt to sales due to severe battery problems) and took about 8% of the US market for electric vehicles in the last quarter. The successful return of the Bolt, with more electric vehicles coming in 2023, gives GM, essentially, sole (or close to it) ownership of the low-priced end electric vehicle market. The company also recently announced that it has assured supply of the materials needed to build the vehicles and batteries through 2025 at a rate of one million vehicles a year. While GM is no Tesla, the stock isn’t priced as if it were, either. Is Tesla with a market cap of $689 billion actually worth 12 times GM’s $53 billion? I’ll be adding recently added GM to my portfolios on JubakPicks.com and JubakAm.com.
October 4, 2022 | Daily JAM, Jubak Picks |
Yesterday I added General Motors to my 10 Perfect Stock Picks Special Report. Here’s what I wrote in that Special Report on the buy.
