这些涨幅的部分动力来自美联储决定降息50个基点。这一举措在市场预期之内，但比25个基点的降息更为激进。The Fed's rate cut decision caused tesla's stock price to soar by 7.4%, triggering market tremors. With the reduction in financing costs, the enthusiasm for purchasing electric autos may rise accordingly.
Tesla's stock price rose on Thursday, partly due to the Federal Reserve's interest rate decision.
$Tesla (TSLA.US)$ The stock closed up 7.4% at $243.92, while the S&P 500 index and Dow Jones Industrial Average rose 1.7% and 1.3% respectively.
Part of these gains came from the Fed's decision to cut rates by 50 basis points. This move was within market expectations but more aggressive than a 25 basis point cut.
"Rate cuts will boost growth stocks with long cycles and high PEs the most," said Gary Black, co-founder of the Future Fund active ETF and a Tesla shareholder.
"Long cycle" refers to the time it takes for investors to recoup the initial bond investment. Shorter-term high-yield bonds mean quicker recovery of more funds during interest payments. Longer-term bonds are more sensitive to interest rate changes. Black is essentially explaining why Tesla would see a bigger boost from rate cuts.
However, the expected upper limit rate cut should be beneficial for auto stocks. Lower rates make car financing more affordable, reduce pricing pressure, and boost demand.
$General Motors (GM.US)$And$Ford Motor (F.US)$The stock rose during most of the trading time, but eventually closed down 0.1% and 0.6% respectively. The stock price of Stellantis (STLA.N) rose 1.4%.
$Toyota Motor (TM.US)$And.$Honda Motor (HMC.US)$Their stock prices rose by 5.1% and 3.4% respectively in overseas trading. They also benefited from low interest rates. The strengthening of the US dollar against the Japanese yen also benefited companies that export goods to the United States, such as these two auto manufacturers, in terms of profits. The recent strength of the yen has been troublesome for Japanese auto manufacturers. In Thursday's trading, Toyota's stock price fell by about 15% over the past three months, while Honda's stock price fell by nearly 7%.
"With increased available supply, and the recent rate cuts by the Federal Reserve, the automotive market is moving towards a more predictable direction, providing more reasons for consumers to move out of observation and make purchases," said Rebecca Lindland, Senior Director of Data and Insights at Cars Commerce, in a press release on Thursday.
On Wednesday, Tesla's stock price fell 0.3%, similar to the changes in the S&P 500 index. Investors seem more optimistic about the Federal Reserve decision on Thursday. Before trading began on Thursday, Tesla's stock price had already fallen about 9% year-to-date. The decline in electric car sales has had a negative impact on investor sentiment. Tesla sold approximately 831,000 cars in the first half of 2024, a year-on-year decrease of about 7%.
Tesla's stock price usually experiences more volatility on the day after the Federal Reserve decision. According to Dow Jones market data, since 2019, Tesla's stock price has averaged about 2.5% volatility (up and down) on decision day, compared to an average of 3.2% volatility after the decision.
The S&P 500 index typically fluctuates about 1.1% (up and down) on Federal Reserve decision days, and similarly on the day after the decision.
Tesla's stock price moves in the same direction as the market about 75% of the time on Federal Reserve decision days and the day after.
Interest rates will dominate the trend in Thursday's trading. In addition to the Federal Reserve, investors have also received some concerning news from Europe. According to industry data provider ACEA, new car sales in August fell by about 17% year-on-year. Sales of battery electric cars declined by 36%, while sales of plug-in hybrid cars declined by 22%.
As of now, car sales in Europe have increased by about 2% year-on-year. Sales of battery electric cars have declined by about 6%, while sales of plug-in hybrid cars have fallen by 2%. As of now, battery electric cars account for approximately 14% of new car sales in Europe, which is a decrease of about one percentage point year-on-year.
In contrast to sales in Europe are sales data in China. Citigroup analyst Jeff Chung's tracked data shows that Tesla sold over 15,000 cars in the past week, expecting the company to have its strongest quarter ever in China.
Editor/Somer