Today’s Featured Interview:
CBT News Market Update: Joe Langley, IHS Markit & Neal Gann LotLinx
Top Headlines:
Ford continues to press into the fight against COVID-19. The automaker announced its goal of donating 100 million medical-grade masks through 2021. The mask mission follows Ford’s completion of 50,000 ventilators to help clinicians treat COVID-19 patients. The company currently produces 2.5 million masks per week but will incorporate more machines to help increase their output and deliver on their promise. The masks will be delivered to a number of at-risk communities across the United States.
Fleet sales took a step back in the month of August. According to Cox Automotive, rental, commercial, and government purchased new vehicles were down 51% year-over-year. For automakers, fleet sales varied from as high as an 8.1% increase and as low as an 89.1% decrease. Toyota experienced its best month of fleet sales since March, while Nissan saw the largest fall in fleet sales for August.
Used-car sales ended the month on a high note, with pre-owned sales for the last full week of August beating pre-COVID forecasts by 1%. According to J.D. Power’s Auto Industry Impact Report, franchised dealer used-car sales were either even or above pre-virus projections. In the month of August, used-car sales decreased week-over-week, however, the trends show that used-car sales remain on a steady road to recovery.
Stock experts say that Tesla could be the most dangerous stock on Wall Street. Tesla’s recent rally hit a speed bump with shares dropping four days in a row. New Constructs CEO David Trainer told CNBC that the EV maker’s stock prices imply that Tesla will own anywhere from 40 to 110% market share depending on what shareholders believe their long term average selling price will be. Trainer said that warning signs, such as current valuations implying a dramatic production ramp by 2030, and competitive pressure from other automakers, makes Tesla “one of the biggest of all-time, house of cards getting ready to fold.”
Did you enjoy today’s automotive newscast? Please share your thoughts, comments, or questions regarding this topic with host Jim Fitzpatrick at jfitzpatrick@cbtnews.com.
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