US Auto Stocks See Rising Inventories as Tesla Gets a Reprieve


Today is turning out to be a big day for US auto stocks. Here are some things you should keep an eye on.

Analysts are watching US auto stocks today on pretty much all fronts. For one, Elon Musk is getting a brief respite from the month-long throttling Tesla (TSLA) stock as taken. Countless media outlets have focused attention on the electric car maker every time a Model S got into an accident or irked a celebrity.

The US government announced that it's opening an investigation into the the fires – but this morning the German Government also reported that it had found no problems with car's machinery.

Presuming that the US investigation results in the same findings, Musk gets a big, fat "I told you so" as Tesla shares soared about $14 in under 40 minutes this morning.

But today's trading will likely be more nerve-racking for the manufacturers of traditional automobiles. America's big three: Ford (F), General Motors (GM) and Chrysler are all carefully eyeing figures for November auto sales.

As the industry has recovered, many of these companies ramped up production to keep up with renewed demand. However, with inventory at its highest level since 2005, all three auto makers are paying extremely close attention to the numbers. If sales fall short, then the much vaunted US auto recovery could be jeopardized by dated, overstocked inventory.

And as if tensions in Detroit weren't already high – today is also the day when a Federal judge will rule on the legitimacy of Detroit's bankruptcy filing. If the bankruptcy is upheld, many of Detroit's creditors could wind up receiving as little as dimes on the dollar – which would have huge ramifications for the municipal bond industry.

But auto stocks will likely keep rolling regardless of Detroit's financial status, so we gathered a list of some of the big names to watch.

Click here to access the interactive chart to view quarterly sales over time.

Kapitall chart

Are you watching US auto stocks today? Use the list below to begin your own analysis.

1. Ford Motor Co.: Develops, manufactures, distributes, and services vehicles and parts worldwide. Market cap at $66.31B, most recent closing price at $17.06.

2. General Motors Company: Operates as a global automaker. Market cap at $53.86B, most recent closing price at $39.11.

3. Toyota Motor Corporation (TM): Engages in the design, manufacture, assembly, and sale of passenger cars, minivans, and commercial vehicles. Market cap at $196.41B, most recent closing price at $124.10.

4. Tesla Motors, Inc.: Designs, develops, manufactures, and sells electric vehicles and advanced electric vehicle powertrain components. Market cap at $16.88B, most recent closing price at $124.17.

List compiled by James Dennin. Quarterly sales sourced from Zacks Investment Research, all other data sourced from Yahoo! Finance.)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Investing Ideas , Stocks , Technology

Referenced Stocks: F , TM , TSLA



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