Auto stocks in Q1 2019
In the first quarter, the broader market and most auto stocks traded on a positive note. The S&P 500 and the NASDAQ Composite rose 13.1% and 16.5%, respectively, while General Motors (GM), Ford Motor (F), Fiat Chrysler Automobiles (FCAU), Ferrari (RACE), and Harley-Davidson (HOG) rose 10.9%, 14.8%, 2.7%, 34.6%, and 4.5%. In contrast, American electric carmaker Tesla (TSLA) fell ~15.9% in the first quarter after outperforming the broader market and peers with a 25.7% gain in the fourth quarter.
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Optimism this month
Last week (ended April 18), the two largest US automakers, GM and Ford, stayed bullish for a fourth consecutive week, rising 1.5% and 1.1%, respectively. FCAU and its former subsidiary, Ferrari, inched up by 2.6% and 1.0%, and Tesla rose 2.1%. Its Chinese peer, NIO, (NIO) fell 4.0%.
Most auto stocks have outperformed the broader market this month. As of April 18, GM, Ford, FCAU, Ferrari, and HOG had risen 8.6%, 8.8%, 11.0%, 4.6%, and 14.7%, respectively. However, Tesla has lost 2.4% so far, possibly due to CEO Elon Musk’s ongoing tension with the Securities and Exchange Commission and reports of weak demand for the Model 3.