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Old 03-05-2020, 11:27 PM   #7 (permalink)
JSH
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Ford stock is selling for $6.74 per share and pay a $0.15 dividend. They had a 2019 EBIT of $570 million (down 82%) and a 1.7% margin. They have $37 billion cash on hand

GM's stock is selling for $30.10 per share and pay a $0.38 dividend. They had a 2019 EBIT of $5.48 billion (up 23%) and a 4.7% margin. They have $23.2 billion cash on hand.

Tesla's stock is selling for $724 per share. They had a 2019 EBIT of -$648 million and a -3.5% margin.

If I was to buy individual stocks (which I don't) I would go with GM. They have solid profits, a good dividend, and strong sales in the two largest auto markets in the world. They sell 8.4 million cars per year,

Ford will likely need to merge with another automaker as they are basically a US centric company selling trucks, vans and SUVs. They sell 6 million vehicles a year.

Tesla's financials make no sense. They sold 367,000 cars in 2019. Their two highest margin vehicles are 9 and 5 years old and past due for a redesign. (Sales of the S and X have dropped 52% and 28% in 2019.) The Model 3 is 3 years old a needs a refresh soon. Meanwhile they are busy trying to launch the Y and tool up the Roadster, Semi, and Truck. They are carrying a huge debt load...

EDIT: I'm of a strong opinion that any mainstream automaker will need to make 10 million cars a year of more to survive the next decade as an independent company. With the FCA / PSA merger there will be 4 such companies. (VW, Toyota, Nissan / Renault and FCA / PSA)

GM, Hyundai / Kia, Ford, and Honda are second tier

The little Japanese automakers will be absorbed. I suspect Mercedes and BMW will merge with each other.

Last edited by JSH; 03-05-2020 at 11:39 PM..
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