This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Subaru Outsells Tesla 100:1 in the U.S. in July; Launches First Hybrid

Stocks in this article: TSLAFUJHYTMFVLKAY

NEW YORK (TheStreet) -- This is a review of Subaru's first hybrid car, the XV Crosstrek. It carries a base price of $26,820, which includes destination.

But first, let's consider Subaru's amazing success in the U.S market. In the month of July 2014 alone, Subaru sold 45,714 cars in the U.S. market, up 27% over 2013. That's approximately 100 times as many cars as Tesla (TSLA) sold in the U.S. market in July.

Year-to-date (July), Subaru sold 283,722 cars in the U.S. market, so it is on track to reach approximately 500,000 cars for the full year. That is approximately 30x as many cars as Tesla is expected to sell in the U.S. market this year, and almost 15 times as many as Tesla is expected to sell globally.

Read More: Warren Buffett's Top 10 Dividend Stocks

Considering that Subaru is significantly more profitable than Tesla, does this mean that Subaru should be awarded a market cap of at least 30 times Tesla's fully diluted $37 billion, or approximately $1.1 trillion, making Subaru the most valuable company in the world by a factor of more than double?

Probably not. With a Tesla selling for on average $106,000, Subarus go for approximately one quarter that amount. So perhaps a market cap a quarter of $1.1 trillion is more appropriate, i.e., $275 billion.

In terms of growth rate in the U.S. market, Subaru sales were up 16% for the first half of 2014. In contrast, Tesla's U.S. sales were down 26% for the first half of 2014.

In the U.S., Subaru carved out a niche among the prototypical outdoors person in the Colorado Rockies, thanks to its standard always-on four wheel drive system in cars available at reasonable prices. In recent years, Subaru also seems to have taken over SAAB's old role in cornering other nice demographics such as college professors in Boston and militant lesbians in Vermont.

Analyzing the Subaru Crosstrek XV's body, the best way to describe it is that it's basically a smaller version of Subaru's two more popular models: Forester and Outback. Subaru looks to sell approximately 70,000 of these Crosstrek XVs in the U.S. this year, or twice as many cars as Tesla looks to sell world-wide this year.

Read More: 10 Stocks George Soros Is Buying

Thanks to the Crosstrek's elevated height compared to a regular car, it is very easy to get in an out of it. The base model I drove had a cloth seat, and it has very soft cushions for bottom and back alike; it basically feels like you're sitting in a plush sofa. I like it!

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs