A Chinese automaker, one that competes with Tesla Inc. (NASDAQ:TSLA) for a piece of the world’s most populous EV market, is seeing a surge in its Quality scores in Benzinga’s Edge Stock Rankings, as the latter’s score continues to languish after a series of blows in recent months.
The Quality score in the Edge Rankings is determined by assessing the operational efficiency and financial health of a company, alongside other factors such as historic profitability and fundamental strength relative to peers.
Tesla’s Quality Score Tumbles
EV giant Tesla’s Quality score in Benzinga’s Edge Stock Rankings took a tumble in recent months, dropping from 73.14 to 57.00 within the span of a week in August. It has since recovered to 64.67, which is still unimpressive and below its prior highs.
See Also: Tesla Bull Dan Ives Says Affordable Trim Levels 1st Step Towards 500K Quarterly Delivery Run: FSD 14.1 Could Help Reach $2 Trillion Market Cap
This can be attributed to the company’s brand issues, following CEO Elon Musk’s foray into politics, which led to its sales dropping to a three-year low across several key markets.
The company’s also been struggling in China, which comes at a time when the share of EVs in the country’s auto sales surpassed 51% for the first time. In 2024, China represented 70% of the global EV market in volumes.
The stock scores high on Momentum and Growth, but does poorly on Value and Quality in Benzinga’s Edge Stock Rankings. It has a favorable price trend in the short, medium and long-term. Click here for deeper insights into the stock, its peers and competitors.
Chinese Rival Surges In Quality Metrics
Baoding-headquartered Great Wall Motor Co. (OTC:GWLLY) is surging in Benzinga’s Quality scores, up from 31.87 to 70.37 within the span of a week.
This comes following the company’s sharp recovery since 2023, and its 2024 earnings jumped 45% year-over-year, as it finally rid itself of the COVID-19 overhang. Gross margins similarly rose from roughly 15% to 18%, as the company reported strong operating figures across key metrics such as inventory turnover and return on capital.
It also ended 2024 with a net cash position, made possible by strong free cash flows during the year, and little-to-no growth in its debt. Click here for deeper insights into the stock, its peers and competitors.
Read More:
Ross Gerber Issues ‘Warning’ About Affordable Tesla Vehicles, Says Elon Musk ‘Pilfered’ EV Credit: Gary Black Says ‘I Don’t See These Selling’
Photo courtesy: Shutterstock