Bulletin
Investor Alert

London Markets Open in:

Dec. 9, 2020, 8:40 a.m. EST

Specialized Equipment Has a Role in Re-Imagining the Automotive Industry

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Tesla Inc. (TSLA)
  • X
    Volkswagen AG 1/10th ADR (VWAGY)
  • X
    General Motors Co. (GM)

or Cancel Already have a watchlist? Log In

Dec 09, 2020 (IAM Newswire via COMTEX) -- As governments across the globe commit to shortening the deadlines on banning the sale of ICE vehicles, and with manufacturers intensifying their electrification efforts to provide vehicles across all price ranges, electrification is indeed just around the corner.

Interest in EVs in the UK has skyrocketed up by 500%, while Europe sales have reached half a million units this year. The automotive industry is being radically reimagined as we speak and EVs are taking center stage. Tesla's /zigman2/quotes/203558040/composite TSLA -4.84% value topped $500 billion dollars as it will be finally admitted to the S&P 500 this month. Volkswagen /zigman2/quotes/204431732/composite VWAGY +5.31% has built the largest EV production plant in Europe. Moreover, the German giant started delivering its electric ID.3 in September and it became the best-selling electric vehicle on the continent already in October. Meanwhile, General Motor /zigman2/quotes/205226835/composite GM -2.66% and BMW /zigman2/quotes/200850296/composite BMWYY +4.13% are scaling up their electrification efforts and aiming even higher. Yet, due to their lower maintenance cost of these vehicles, we often forget about specialized equipment that is just as important.

Worksport /zigman2/quotes/200413469/composite WKSP -15.55% announced today that 0n December 14 [th ] it will present its TerraVis

(TM)
system, a novel solar powered light truck bed cover, at the LD Micro Main Event (XIII) in Los Angeles. LD Main Event. This event gathers world's largest active base of micro-cap investors estimated at over 1.3 million individuals, with 2 million investors being invited. Timing could not better for Worksport to tell its story as it recently launched a Regulation-A public offering. Each presenter will have 10 min for the expose while another 10 min will be devoted to Q&A.

Despite their lower maintenance costs, EVs will still need replacement parts. Autozone /zigman2/quotes/200304487/composite AZN -1.19% that just reported earnings already supplies several parts for Tesla's such as brake pads, windshield wipers, headlights, cabin air filters and mirror replacement glass, among others.

Autozone earned $18.61 a share from revenue that rose nearly 13% to $3.154 billion, exceeding analyst estimates of $17.82 and $3.147 billion respectively. Domestic same-store sales rose 12.3% in the first quarter after climbing 3.4% in the year-earlier period with 39 new store openings in the U.S. and two in Brazil during the quarter. But gross-profit margin narrowed down 62 basis points from last year. Gross margin shrank due to one-time factors such as the impact of the pandemic on costs and increase in loyalty rewards shopping by current customers. Although this feared investors as stock dropped after the report, COVID-related factors are already declining, and loyalty programs are always a good sign that customers are coming back. Operating expense as a percentage of sales reduced to 33.6% from 35.8% a year earlier. But the Memphis-based company will take a $50 million second-quarter charge to enhance employee benefits.

Most importantly, company has a long history of growing faster than its peers. Additionally, it has opportunities for continued domestic and international growth as well as a superior customer service that puts it ahead of titans such as Amazon /zigman2/quotes/210331248/composite AMZN -2.89% and Walmart /zigman2/quotes/207374728/composite WMT -1.94% . AutoZone has grown its revenue each year over the past 22 years. While it has the largest number of stores, its average store size is smaller than of its competitors O'Reilly Automotive /zigman2/quotes/207206119/composite ORLY +0.70% and Advance Auto Parts' /zigman2/quotes/202065737/composite AAP +0.60% stores. In this case, smaller seems to be better as Forbes reported AutoZone generates more revenue per square foot of store space than its two competitors. AutoZone's superior profitability is behind the consistent growth in core earnings. Over the past decade, the company has grown core earnings by 9% compounded annually.

Whatever the future holds, Autozone is positioned to benefit from rising used car sales and rising average age of cars on the road whereas Worksport's technology can enhance any pickup, the best-selling vehicle, and make it more sustainable with its solar technology. Moreover, during a recession, people are reluctant to make large purchases and are more likely to enhance their existing vehicles. Therefore, both companies are set to benefit from upcoming trends as the industry continues to evolve. We are entering an era which will be marked by one of the greatest and greenest technological advances in human history with a massive shift happening within the next few years.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com

The post Specialized Equipment Has a Role in Re-Imagining the Automotive Industry appeared first on IAM Newswire .

COMTEX_375806391/2618/2020-12-09T08:39:33

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

/zigman2/quotes/203558040/composite
US : U.S.: Nasdaq
$ 653.20
-33.24 -4.84%
Volume: 30.21M
March 3, 2021 4:00p
P/E Ratio
1,039
Dividend Yield
N/A
Market Cap
$658.88 billion
Rev. per Employee
$445,694
loading...
/zigman2/quotes/204431732/composite
US : U.S.: OTC
$ 25.17
+1.27 +5.31%
Volume: 749,867
March 3, 2021 3:59p
P/E Ratio
27.05
Dividend Yield
1.45%
Market Cap
$114.44 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205226835/composite
US : U.S.: NYSE
$ 52.67
-1.44 -2.66%
Volume: 19.67M
March 3, 2021 4:00p
P/E Ratio
12.19
Dividend Yield
0.00%
Market Cap
$77.97 billion
Rev. per Employee
$790,226
loading...
/zigman2/quotes/200850296/composite
US : U.S.: OTC
$ 30.51
+1.21 +4.13%
Volume: 66,174
March 3, 2021 3:59p
P/E Ratio
15.34
Dividend Yield
2.10%
Market Cap
$56.53 billion
Rev. per Employee
$871,869
loading...
/zigman2/quotes/200413469/composite
US : U.S.: OTC
$ 0.44
-0.08 -15.55%
Volume: 5.26M
March 3, 2021 3:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$34.52 million
Rev. per Employee
$1.93M
loading...
/zigman2/quotes/200304487/composite
US : U.S.: Nasdaq
$ 47.16
-0.57 -1.19%
Volume: 14.03M
March 3, 2021 4:00p
P/E Ratio
38.48
Dividend Yield
2.91%
Market Cap
$125.99 billion
Rev. per Employee
$352,484
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 3,005.00
-89.53 -2.89%
Volume: 3.99M
March 3, 2021 4:00p
P/E Ratio
71.97
Dividend Yield
N/A
Market Cap
$1558.30 billion
Rev. per Employee
$297,430
loading...
/zigman2/quotes/207374728/composite
US : U.S.: NYSE
$ 127.59
-2.52 -1.94%
Volume: 13.95M
March 3, 2021 4:00p
P/E Ratio
26.94
Dividend Yield
1.72%
Market Cap
$368.12 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/207206119/composite
US : U.S.: Nasdaq
$ 454.50
+3.14 +0.70%
Volume: 723,134
March 3, 2021 4:00p
P/E Ratio
19.30
Dividend Yield
N/A
Market Cap
$31.69 billion
Rev. per Employee
$149,106
loading...
/zigman2/quotes/202065737/composite
US : U.S.: NYSE
$ 165.83
+0.99 +0.60%
Volume: 757,550
March 3, 2021 4:00p
P/E Ratio
23.20
Dividend Yield
0.60%
Market Cap
$10.80 billion
Rev. per Employee
$148,622
loading...

This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.