Comparison of P/E Ratio for Major Automakers and Tesla

Tesla Motors, Inc. Analyst PE Estimates

The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative to its per-share earnings, and is a commonly used statistic for stock evaluation. Many of the major automakers, save for Toyota, are projected to have stable P/E ratios […]

Ford GT Sells Out – Selection Process Now Begins

Beginning on April 13th, Ford began a month long window for buyers to submit applications to purchase the all new limited edition Ford GT. In that time frame, 6,506 orders were received – far greater than the 500 GTs Ford will produce for the 2017 and 2018 model years. Dave Pericak, director of Global Ford […]

Nissan to Take Stake in Mitsubishi Motors

Amidst the recent controversy surrounding Mitsubishi and their misreported fuel efficiencies, Nissan has taken the opportunity to pick up a substantial stake in the Japanese automaker at a very attractive price. The deal will be worth an estimated $2.2 billion dollars, and will give Nissan a 34% stake in Mitsubishi. The companies view this as […]

Tesla Reports Q1 Loses – Narrowly Beats Analyst Expectations

Tesla released their Q1 reports today, outlining millions in losses while trying to maintain optimism for the future. Within the Tesla shareholder letter, included below, they highlighted the mass-market appeal for their electric vehicles in astonishing pre order numbers for the Model 3, due at the end of 2017. Tesla touts their future mass market […]

Chapter 5 Discussion Questions

1) What was the state of the auto industry prior to WWII/during the Great Depression? What ramifications did the war have on both U.S. and foreign auto makers? Why was the U.S. auto industry able to see a boom in sales in the post-war period?

2) What were some of the key technological advancements in […]