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Tesla (TSLA) stock fell on Monday after the EV maker announced price cuts in China, which led to lower deliveries in February.
Ford (F)’s stock price rose after the company’s U.S. sales rose 10.5% in February compared to the same month last year.
Yahoo Finance reporter Pras Subramanian joins the live show to discuss the latest developments in these companies and what it means for them going forward.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor’s note: This article was written by Nicholas Jacobino
video transcript
[AUDIO LOGO]
Julie Hyman: Tesla stock took a big hit today due to concerns from China. His friend Pras Subramanian from Yahoo Finance has the details. 7% was a significant decrease.
Pras Subramanian: Yeah. So I think the low in the last few weeks was mid-February since we last saw this level. There are two things here. First, shipments decreased in February, down 16% from the previous quarter to 60,000 units, and down 19% from the same month last year.
what’s happening? There was a Chinese lunar holiday in February this year. This obviously reduces economic activity and sales. Tesla also tends to postpone shipments to China until later in the quarter. So we’ll probably see more of a catch-up in March. But as you know, this low amount, coupled with price cuts, means Tesla starts paying around $4,800 for Model 3 and Model Y vehicles here in China, based on insurance subsidies, some options, discounts, etc. Did.
But all of this suggests that China’s once-hot EV market is likely to slow down.
Josh Lipton: Let’s talk about Ford for a moment. U.S. sales are reported to have increased 10.5% year over year. How did you compare to your competitors there?
Pras Subramanian: Yeah. Conversely, today we see a significant increase in Ford’s stock price compared to Tesla. And this quarter too he had a strong 10% growth and sales increased as well. But I also want to note that despite finishing behind them, Toyota had a big, big month for themselves. I think it went up 16%. Hyundai rose 6%.
Kia Motors’ sales decreased slightly, but Honda and Kia Motors’ EV sales were strong. Honda also rose 37.8% in February. In other words, there are many comparisons to last year, when Japanese automakers were having supply issues. But again, this means that the U.S. auto market is probably more resilient than you might think in the face of potentially uncertain conditions due to high prices and interest rates. It seems to indicate.
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