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.
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.
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