Just How Bad Are the Automakers Taking a Beating in the Stock Market?

by Aaron Cole

Updated: December 31st, 2020 Published: August 24th, 2015

Markets around the world are down, down, down, down and down.

At the time of this writing, the Dow Jones Industrial Average is down roughly 650 points on Monday, which is more than 1,500 points off of where we were at the beginning of August. A lot of the run is fueled by fears that China is tapering off its growth ( or they’ve been making it up for a while) and that Europe is tinkering on the brink of sinking into another recession.

There are plenty of financial sectors that are taking a beating. Automotive companies are no different. Here’s a rundown of publicly traded automakers and how much they’ve lost from their July 31 close to mid-day trading today.

Unsurprisingly, the biggest droppers are those with more exposure to China ( Especially Toyota, whose production has been hampered by a blast in Tianjin) and Tesla, whose second stock offering could be diluting shares in addition to the larger, global shock.

Tata Motors (TTM) — 29.66-23.01, -22.4 percent
Tesla Motors (TSLA) — 266.15-219.46, -17.5 percent
Toyota Motor Corp ™ — 133.71-110.87, -17 percent
BMW (BMW.DE) — 91.30-77.88, -13.5 percent
Daimler (DDAIF) — 89.19-77.59, -13 percent
Nissan Motor Company (NSANY) — 19.34-16.90, -12.6 percent
Honda Motor Company (HMC) — 33.96-29.70, -12.5 percent
Ford Motor Company (F) — 15.18-13.21, -12.9 percent
General Motors (GM) — 32.08-28.22, -12 percent
Fiat Chrysler Automobiles (FCAU) — 15.80-14.02, -11.2 percent
Volkswagen AG (VLKAY) — 40.35-36.56, -9.3 percent

Earlier this month, General Motors issued a statement before the massive stock sell off to ensure investors that it would endure a devalued Chinese currency. It’s “natural hedge,” or locally sourced suppliers, would help insulate it from massive market fluctuations, but not entirely. Last month, GM announced it would invest $5 billion in a joint venture with SAIC motors in China to locally build smaller cars.

On Monday, Daimler said it would press on further in China, despite worries that the market for luxury vehicles could be drying up, according to Automotive News.

Losing this much steam in China will undoubtedly have a ripple effect in the rest of the automotive world, that much is clear. The size of the wave has yet to be determined.

#Automakers #BMW #Fiat.Chrysler #Finance #Ford #Global #GM #Honda #Mercedes-Benz #Nissan #Volkswagen #Tesla

Aaron Cole

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3 of 9 comments

Dusterdude on Aug 24, 2015

I'm going into a fetal position and will cry like a baby after last few days ....

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- Kendahl on Aug 25, 2015
  
  If you are still in savings and investing mode, it's time to start buying. Just do it slowly because prices may drop even more. Remember 2008. The market dropped by half in 4 months and took 4 years to recover. The good news is that it went on to rise by another third. If you are retired and living off your investments, until the market recovers, minimize spending that requires stock sales to pay for.
  
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Goldtownpe on Aug 25, 2015

Silver lining? Time to buy! Buy low, sell high.

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Recent Comments

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Dartman https://apnews.com/article/artificial-intelligence-fighter-jets-air-force-6a1100c96a73ca9b7f41cbd6a2753fdaAutonomous/Ai is here now. The question is implementation and acceptance.