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Seeking Out Industry 4.0 For The Automotive Market

Jon Phillip

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Many companies have been exploring Industry 4.0 in one way or another. The idea can bring value across a number of ideologies.

One is connectivity, being able to receive the right data and send it to the right people in real time. A lot of manufacturing plants operate with partial data, challenges in manufacturing and delays in getting people to make timely decisions. How do we transition from a world where we are relying on humans to make decisions based on old information and opinions to where we can be more fact-based and prescriptive?

A second is advanced analytics. There is so much data that people have access to, it’s very hard for humans to make the best decisions — Industry 4.0 can help improve the quality of decision-making. Organizations can leverage Big Data, artificial intelligence, and machine learning to create predictive analytics. Similarly, these same organizations can take advantage of advanced analytics to more easily understand the main causes of quality issues such as in paint shops.

The third ideology, flexible automation, is where the automotive industry is at its best. OEMs have been relatively pushing the lead of automation for quite some time. They are continuing to look into the next wave of automation, and they are investigating ways to adopt use cases from the other two areas.

Automotive organizations are very satisfied with automation, and they have been looking at collaborative robots along with having long track records of experience in automated guided vehicles. Companies now are implementing predictive analytics use cases. The story’s example of Renault’s Dacia plant in Pitesti, Romania, demonstrates the detection of micro-level deviation and using it as a predictor of reliability.

The Road Ahead

Industry 4.0 has likenesses to lean manufacturing that the industry saw in the 1990s. The application of digital connectivity and teamwork offers a next level performance potential. In lean manufacturing terms, organizations are still looking to eliminate waste, decrease time, increase productivity and jump-start the effectiveness of assets.

Industry 4.0 allows for an opportunity to make major changes to things like time to market and areas of opportunities that span organizational boundaries. If you have a more transparent, analytically driven view of market demand, then not only can OEMs benefit, but suppliers also have greater visibility and can better control inventories. The whole value chain can better respond and better optimize its performance.

This becomes more important as the industry faces a wave of retirements and the loss of tribal knowledge developed over decades. What digital can do is codify the knowledge and provide remote support to technicians in the field. You don’t need to rely just on what’s in someone’s head.

Moving from trials and proofs of concept to full-scale distribution of Industry 4.0 depends on the organization knowing where the business case makes sense. A lot of companies will attempt new technologies to understand them.

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Automotive

Should You Buy Tesla (TSLA) After The Recent Consolidation?

Jon Phillip

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tesla stock price

It has been a bit of an up and down year for Tesla Inc (TSLA Stock Report) so far. The electric car maker started the year off with a massive drop in deliveries. Then in the second quarter, it made a comeback by generating a larger amount of deliveries in its history.

In the same sense, TSLA stock price has been up and down as well due to a range of reasons. In such a situation, it is often difficult to properly gauge whether the company is going in the right direction or not. More importantly, it will be the best way of figuring out whether the stock is worth buying.

Can Tesla Deliver in 2019?

Now, as everyone knows, the company made a record number of deliveries in Q2 2019. Despite the year on year rise of 134%, the company’s revenues actually went down 11.9%. That is a significant contract and one that might not be entirely acceptable for most investors. That being said, Tesla has stated that the company is confident in their quest to bring down the unit cost of each car and that will eventually reflect on the revenues.

[Read More] Multi-Billion Dollar Markets Are Ready For A Shake-Up; 1 Stock Could Hold The Key

In addition to that, the company is well on its way to execute its strategy by starting with luxury electric cars and eventually producing lower-priced models meant for the mass market. That is a move that could prove to be a huge boost to Tesla in the long run.

What Does The Future Hold?

However, one of the biggest concerns for the company at this point in time is its debt load of more than $13 billion. Considering the fact it is around 33% of its actual market cap, it is only natural that most investors believe that the current valuations of Tesla are unrealistic. Over the coming months, the whole thing may become even tougher for the company as it seeks to grow further.

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Automotive

As Tesla (TSLA) Stock Price Consolidates, What Should You Watch?

Joe Samuel

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tesla stock price

In the past few weeks, Tesla Inc. (NASDAQ:TSLA) stock price has been making headlines for various reasons. Currently, the electric vehicle maker is making headlines after its decision to reintroduce unlimited supercharging for owners of the Model S sedan and Model X cars.

Unlimited free supercharging for Model S and Model X

This is not the first time the company is offering free supercharging benefits and this shouldn’t be a big deal. However, for investors who are reading between the lines, this can be unsettling for Tesla stock price. Investors are still not sure what motivated the decision to bring back the free supercharging for life hardly a year after it was phased out.

[Special Report] On-Demand Tech Companies Hit Billion-Dollar Valuations; Here’s How Investors Can Capitalize In The Market

It is expensive for the company to power cars of customers for life when it has been facing unprofitability issues. The company has been laying off employees and cutting costs to show that it can be profitable in the long-term. Following the announcement of Q2 earnings Tesla stock dipped 10% after the company announced a net loss of around $408 that was almost three times what Wall Street analysts had predicted on a per-share basis.

Free supercharge for life to boost sales of Model S and Model X cars

The return of free charging is a desperate move by Tesla as it looks to boost sales of the Model S and Model X vehicles. For months bears have argued that the low-margin Model 3 car is the reason there is low demand for these premium profitable models.

For instance, in Q2 Model X sales were down 40% while Model S registrations dropped 54% in California which by far is Tesla’s biggest market. On the other hand Model 3 sales doubled in the quarter. Although this might look like good news for the company it is nonetheless not if the low margin Model 3 is eating into the demand for higher-margin models. 

If the company at some point phased out free supercharging then it will be pulling forthcoming sales forward. That with disappearing tax credits may help in creating a future demand vacuum for Model X and Model S vehicles.

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Automotive

Auto Stock Prices In Jeopardy After Latest Earnings Reports From Ford & Tesla

Joe Samuel

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F stock price TSLA stock price

After disappointing earnings, both Ford stock price and Tesla stock price fall

The automobile industry has been through its fair share of troubles over the past few years, due to a range of factors. However, it cannot be denied that one company that has been going through a prolonged churn is Ford, one of the giants of the industry.

[Article] Can On-Demand Delivery Help Boost Autos In The Coming Quarters?

On the other hand, electric car manufacturing giant Tesla has had a rollercoaster ride for years now. That continues to be the case for the company. This week, both these companies released their Q2 2019 earnings and the results proved to be disappointing.

Ford Stock Price

Ford Motor Company (NYSE:F) released its earnings on Thursday. Unfortunately, the results proved to be a major disappointment for investors. In addition to that, the company’s projections for the full year also proved to be well short of expectations.

Back in April, the shares had attained the biggest gains in a decade after the carmaker beat expectations, but the second-quarter results have dented the stock considerably. The Ford stock price declined by as much as 7.45% following the results, which is the biggest single-day fall since January 17 and the next few days could prove to be crucial.

On the other hand, the earnings for the full year were projected to be in the range of $1.20 and $1.35 a share. Analysts had expected earnings of $1.40 a share.

Tesla Stock Price

On the other hand, electric car maker Tesla Inc (NASDAQ:TSLA) may have generated record deliveries. But the company’s losses widened and the resignation of co-founder J. B. Straubel didn’t help matters either. However, one of the bigger reasons behind the Tesla stock price tanking by as much as 14% on Thursday was the fact that CEO Elon Musk seemed to backpedal on his promise about turning a profit in the remaining quarters this year.

Although Musk did reiterate the company’s quest to turn a profit in the next two quarters, he seemed to stress more on the growth of volumes and enhancement of production capacity. Analysts believe the company needs to increase its margins if it wants to become a serious player in the industry.

Like This Article? Check Out: Special Delivery! On-Demand Tech Companies Hit Billion-Dollar Valuations; Here’s How Investors Can Capitalize In The Market

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