The US auto industry
Most auto stocks are trading positively this month. According to Autodata, US light vehicle sales’ SAAR (seasonally adjusted annual rate) rose YoY (year-over-year) to 16.9 million units in May from 16.8 million units, but fell month-over-month from 17.2 million units. Despite weak passenger car sales, continued demand for pickup trucks and SUVs is keeping optimism alive in the US auto industry. Let’s look at auto stocks’ recent prices.
Auto stocks this month
As of June 6, the broader market was trading positively this month with the S&P 500 rising 2.5% so far. Meanwhile, US auto stocks General Motors (GM), Ford (F), and Tesla (TSLA) outperformed the broader market, rising 2.9%, 3.6%, and 12.2%, respectively. Japanese automakers (FXD) Toyota (TM) and Honda (HMC) have risen 6.4% and 1.4%. In contrast, Italian-American automaker Fiat Chrysler (FCAU) has fallen 8.9%.
Investors’ optimism due to strong US SUV and truck sales may also be behind auto stocks trading positively. Fiat Chrysler held its Capital Market Day on June 1 and maintained uncertainty about CEO Sergio Marchionne’s successor. To learn more about the event, read Fiat Chrysler CEO Marchionne Thinks Trade War Dust Will Settle.
In this series, we’ll take a close look at analysts’ recommendations for auto stocks this month, as well as key updates for auto companies over the last few months.