Tesla Motors Tests China and Boeing Increases Dreamliner Production

Boeing reports earnings next week and investors hope the company will continue to ramp up production to fill its massive backlog of orders.

Jan 24, 2014 at 3:00PM

The Dow Jones Industrial Average (DJINDICES:^DJI) is trading about 250 points lower, or 1.5%, in midafternoon trading after market concerns weighed on investors. Demand for safer assets rose and sent Treasury bonds higher again today as investors continued to worry about this week's downbeat manufacturing data from China. As earnings season continues look for two big quarterly reports next week from industrial Dow components Boeing (NYSE:BA)  and Caterpillar. With that in mind, here are some companies making headlines.


Boeing's 787 Dreamliner rolling out of its Everett plant. Source: Boeing.

Boeing announced today that it has rolled out the first 787 Dreamliner built at the increased rate of 10 airplanes per month. The improved rate is the highest ever for a twin-aisle airplane and marks the third increase in production rate in just over a year's time. It's also double the rate of five planes that were produced as recently as November 2012.

Increasing the production rate will be a big focus for Boeing and its investors in order to cash in on the company's massive and ever-growing backlog of orders. Adding orders from last fall's Dubai Airshow, the backlog will stand at roughly $500 billion.

"The entire 787 team is now focused on capturing efficiencies at this historic level of production, as well as meeting our commitment to increase the production rate to 12 per month in 2016 and to 14 per month by the end of the decade," Larry Loftis, vice president and general manager, 787 program, said in a press release.

Model S Blue Front

Tesla's Model S. Source: Tesla Motors.

Outside the Dow, Tesla Motors (NASDAQ:TSLA) again defied industry norms this week when it announced it wouldn't hike the price of its vehicles in China, the world's largest automotive market, by more than necessary. The Model S will go on sale in China for about 734,000 yuan, equal to $121,280, which is a 50% premium to the same vehicle found in the U.S. market.

"The price of a Model S in China is the same as the price of a Model S in the U.S., adding only unavoidable taxes, customs duties and transportation costs," the car maker said in a statement on its website, according to Bloomberg. "If we were to follow standard industry practice, we could get away with charging twice as much for the Model S in China as we do in the U.S."

The move comes as the electric car maker prepares to test demand in China, which has faced obstacles to its target of having 5 million alternative energy-powered vehicles by 2020. Tesla is still in the infancy of expanding its EV infrastructure with supercharger networks in North America, Europe, and China. When that systems is built out it should give Tesla a huge advantage over the EV competition as the market for electric-powered vehicles grows. 

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Fool contributor Daniel Miller has no position in any stocks mentioned. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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