General Motors To Move Into a Shared Auto Mobility

The auto-maker might be the most disruptive automaker in the industry.

Markets all over the world are going to a rapid and drastic change especially the automobile industry. Amid this technological advancement, auto-mobile companies do not want to be left behind and enjoy every chunk of these changes. Furthermore, auto-makers all over the world are working on establishing ways to make the driving environment more safe and clean and one of the solutions that they have come up with is Shared Auto Mobility.

General Motors Company has made numerous attempts to enter into the Shared Mobility space in recent time which makes us believe that it might just be the most sustainable auto-maker in the industry for the specific technology.

Mobility Services will not only reduce the heavy traffic congestion problems but also help managed the transport systems which are likely to be used as a shared service, since the population of the world is growing at a good 1.2% rate. Furthermore, analysts are concluding that in the recent future, people will avoid buying their own vehicles and rather prefer more economic ways of commuting which could include car sharing services or even public transport – that ought to reduce the congestion and transportation problems.

Numerous analysts in the industry believe that there is likely to be a drastic change in the vehicle purchasing patterns of people in the upcoming years. Last year, analysts Barclays shared their views on the future of the automaker industry in a report. As per the report by the investment bank, car ownership is likely to call by 50% in the next 35 years as they will prefer to commute via shared autonomous vehicles that are currently in the making. Every shared autonomous car is expected to replace nine traditional vehicles that are now owned by customers. This change would bring the auto demand to 9.5 million which will indicate a drop of 40%, in the United States.

Making such a concept a reality entirely depends upon automakers making technology their friend; as these automobile companies will need to partner up with technology companies to bring new features and technologies to their cars. Taking into consideration the fact that research is the first step in achieving all these goals, the research and development expenses of General Motors Company went up to $7.5 billion in 2015 to an initial $7.4 billion in 2014.

GM is not the only auto-maker that has injected a lot of cash into R&D; many others have made hefty investments in this research as well however GM is largest car seller in North America and has made the most investment in the car mobility field taking the lead in the specific research.

Launch of Tesla's Model 3 Right Around the Corner:March 31, 2016

The auto-maker plans to launch its Model 3 on March 31; investors and analysts are quite excited about the event.

Analysts and investors have been long concerned with the long-term future of the auto-maker giant, Tesla Motors Inc. As March 31, 2016 is approaching the analysts and shareholders are getting excited as the most anticipated event by Tesla will be held at Hawthorne Studios where the automobile manufacturer will be introducing its Model 3 electric vehicle (EV). This event is considered to make or break the EV maker; however many are expecting that Tesla Motors will be able to gain back the trust of its analysts with the introduction of the latest vehicle.

In case the latest model by the auto-maker turns out to be a hit, which many are predicting it will be, the short sellers of the stock will be in for a tough time. Tesla Stock is expected to witness a big jump in its share price if the event works in favor of it. As per the latest data by Bloomberg, the company short interest stands at an all-time high of 34.05 million shares for the period that ended in February.

It seems that the stock price is bound to get up since there are a high number of shares in the short position and along with the big event coming up, the share price is certain to bounce. This ultimately signifies that the stock price will not just vault due to the event or the release of Model 3 but also because of the short squeeze – this short interest is equivalent to over 34.76% of the outstanding share in the company; making the stock highly expensive.

If the stock of the automobile giant continues to rise, more investors with short position are expected to borrow the stock which will lead to a rise in stock prices. Tesla Stock had been underperforming since the beginning of the year however it managed to bounce back after February 10 after announcing its fourth quarter financial results. Even since the announcement, the stock of the auto-maker has jumped by as much as 57% which blew up in the fact of those Wall Street analysts that had a bearish stance towards it.

Due to the lag in production and less deliveries of Model X, investors became quite confused with the performance of the company. It managed to sell 208 units of Model X which was lower than the company’s and analyst’s estimation. Because of the slow production of the electric crossover sports utility vehicle the stock price was affected. However, the CEO Elon Musk admitted that they made will making the vehicle and stated that they simply put too much technology and features into one vehicle.

As the event approaches, teaser picture of the latest car have started to surface. The company and its executive officer have chosen Twitter as the perfect platform to share these images, to create the necessary hype for the electric car in the market. For the first time, the organization is relying on Buzz Marketing as previously word of mouth strategy worked best for the giant. Furthermore, as per the report, Tesla has sent of 650 invites of the event to its customers.