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.
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.