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GM and Ford stock are outpacing high-momentum Tesla shares this month

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After a nearly 400% rally this year, Tesla‘s stock is tapping the brakes. The stock is down 3% this month even after another blowout quarterly report.

That has given traditional automaker stocks time to play catch-up. General Motors has surged 27% in October, while Ford is not far behind with a 24% gain.

That’s not the only way the old-school auto companies are bridging the gap, according to Gina Sanchez, founder and CEO of Chantico Global and chief market strategist for Lido Advisors.

“The problem that Tesla has is that GM, Ford, Volkswagen, they’re all waking up and saying, ‘Hey, we need to get into this [electric vehicle] game.’ And if you look at Europe as a kind of litmus test, Europe just topped 500,000 units sold for EVs, and Tesla was not among the top, which tells you that there’s competition now in this space,” Sanchez told CNBC’s “Trading Nation” on Thursday.

Global electric vehicle sales are expected to climb by 36% in 2021, surpassing 3 million total units, according to Cairn Energy Research Advisors. GM and Ford have pivoted to expand research and production in the space — General Motors, for example, unveiled an EV Hummer earlier this week.

“Tesla has basically shown everyone that EV is a space that they need to be in, and now they’re competing against old-school companies like GM,” said Sanchez.

Quint Tatro, president of Joule Financial, said pitting Tesla against GM and Ford is not an apples-to-apples comparison.

“I know they all make cars, but I don’t even like lumping GM, Ford and Tesla together,” Tatro said during the same “Trading Nation” segment. “Tesla has so much going for it that’s just outside the automobile. I think if you’re buying Tesla here, you’re buying it for the ability for the company to unlock future value through their batteries, future technology that’s coming down the pike.”

Its position at the cross-section of auto production and tech makes it a different beast, Tatro said.

“It’s always been virtually impossible to value this company. And I tell folks, you know this is a company where you believe in [CEO Elon Musk], you believe in the technology, you buy it when everybody thinks that there’s trouble and then you just hold it, and you don’t trade it,” said Tatro.

GM and Ford, on the other hand, may have been overdue for a bounce after tumbling at the beginning of the year, Tatro said.

“They just got too cheap,” said Tatro. “They have much better balance sheets over the years, they’ve been improving, and, as Gina said, they’re coming strong with the EV game, so they’ve got a little bit of momentum. So it’s been a kind of a perfect storm to see money move in looking for value.”

GM trades at 8 times forward earnings, Ford at 13.5 times, and Tesla at 129 times.

Disclosure: Joule Financial holds shares in Ford and Tesla.

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India can beat China in low-cost manufacturing: Maruti Suzuki chairman

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NEW DELHI: India has the potential to surpass even China in low-cost manufacturing if the government and industry work in a cohesive manner, Maruti Suzuki India (MSI) Chairman RC Bhargava said on Thursday.
Bhargava also said the government should focus on increasing the competitiveness of the Indian industry.
“India has the capability to become a lower cost country than China if the industry and the government work together,” Bhargava said.
He was sharing his views on making Indian manufacturing globally competitive at an online event organized by the All India Management Association (AIMA).
Bhargava said the only objective of government policies should be to increase the competitiveness of Indian industry so that it can make things at the lowest cost along with the best quality in the world.
“The more the industry can sell, the more jobs will be created in the economy,” he noted.
Bhargava pointed out that creating jobs across sectors was important for the overall growth of the economy.
He, however, criticized states which have reserved jobs in manufacturing for locals.
“It is an anti-competitive step,” Bhargava said.
He also said MSMEs have to be as globally competitive as the large companies because the entire supply chain determines the overall competitiveness.
Bhargava also noted that the industry cannot be competitive unless the promoters and managers treated workers as partners.
He pointed out that MSI owed its success to explaining to its workers that they will prosper if the company grew and backing that with policies and actions that delivered income and career growth to employees.


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Transport Ministry begins exercise to formalise registration of vintage motor vehicles in India

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New Delhi: The transport ministry has issued a notification to formalise the registration process for vintage vehicles in the country, in a bid to preserve the heritage of old motor vehicles in India.

The ministry has proposed a fee of Rs 20,000 for a new registration and Rs 5,000 as fee for subsequent re-registration.

All applications for registering such vehicles will be applied on the “PARIVAHAN” portal of the ministry of road transport and highways. This registration shall be valid for 10 years.

The Ministry has published GSR 734 (E) on Wednesday seeking comments and suggestions in regards to amending Central Motor Vehicle Rules 1989, relating to Vintage Motor Vehicles.

“There are no existing rules for regulating the registration process of vehicles of heritage value. Through this notification the Ministry intends to formalize the registration process of the Vintage Motor Vehicles,” said a government official.

The government has defined Vintage vehicles as those two-wheelers and four-wheelers (non-commercial/personal use) which are more than 50 years old from the date of their first registration (including imported vehicle).

The definition, however, restricts any substantial overhaul of the vehicle which includes modification in chassis or body shell, and or engine.

All States registering authority will appoint a nodal officer who will process all applications for registration of vintage motor vehicles, as per the proposed rules.

Further, States will have to form a committee which will inspect a vehicle and declare whether the vehicle is fit to be registered as vintage.

The ministry has proposed to restrict the use of vintage vehicles on Indian roads.

“A Vintage Motor vehicle is allowed to run on Indian roads only for display, technical research or taking part in a vintage car rally, refueling and maintenance, exhibitions, vintage rallies, to and fro to such exhibition or car rally,” the official said, sharing details of the proposal.


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India can beat China in low-cost manufacturing if industry, govt work together: RC Bhargava

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NEW DELHI: India has the potential to surpass even China in low-cost manufacturing if the government and industry work in a cohesive manner, Maruti Suzuki India (MSI) Chairman RC Bhargava said on Thursday. Bhargava also said the government should focus on increasing the competitiveness of the Indian industry.

“India has the capability to become a lower cost country than China if the industry and the government work together,” Bhargava said.

He was sharing his views on making Indian manufacturing globally competitive at an online event organised by the All India Management Association (AIMA).

Bhargava said the only objective of government policies should be to increase the competitiveness of Indian industry so that it can make things at the lowest cost along with the best quality in the world.

“The more the industry can sell, the more jobs will be created in the economy,” he noted.

Bhargava pointed out that creating jobs across sectors was important for the overall growth of the economy.

He, however, criticised states which have reserved jobs in manufacturing for locals.

“It is an anti-competitive step,” Bhargava said.

He also said MSMEs have to be as globally competitive as the large companies because the entire supply chain determines the overall competitiveness.

Bhargava also noted that the industry cannot be competitive unless the promoters and managers treated workers as partners.

He pointed out that MSI owed its success to explaining to its workers that they will prosper if the company grew and backing that with policies and actions that delivered income and career growth to employees.


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