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How Fiat Chrysler Stock Is Trading in Q2

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Fiat Chrysler Automobiles

In 2019, the shares of Italian-American automaker giant Fiat Chrysler Automobiles (FCAU) have been highly volatile. The company started the year on a strong positive note as its stock surged 19.0% in January. However, these gains didn’t last long, as the stock turned negative in February and fell 14.4% in the month. It remained mixed in March. As of yesterday’s closing, Fiat Chrysler has lost 1.6% in the second quarter so far. Now, let’s find out how its recent stock performance looks compared to the performances of other automakers and the broader market.

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Broader market and peers

After posting a 13.1% gain in the first quarter, the S&P 500 benchmark has lost its positive momentum in the second quarter. As of yesterday, the index was trading with a minor quarter-to-date loss of 0.3% due to a sharp fall in May.

A recent escalation in the US-China trade war has taken a big toll on investors’ sentiments. In May, the S&P 500 Index fell 6.6%, and nearly all automakers underperformed the market by a wide margin.

Last month, the two largest US automakers, General Motors (GM) and Ford Motor Company (F), fell 14.4% and 8.9%, respectively, and the US-listed shares of Fiat Chrysler tanked 9.3%.

US electric car company Tesla (TSLA) fell 22.4% in May, while Japanese automakers Toyota Motor (TM) and Honda Motor Company (HMC) slipped 4.9% and 11.8%, respectively.

Auto investors fear that the ongoing US-China trade war is likely to further deteriorate auto companies’ profitabilities by increasing their cost burdens due to higher tariffs. This concern triggered a sell-off in auto stocks last month.

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