| Title | GM, Ford Shares Dip as Morgan Stanley Downgrades US Auto Industry | |
| Date | Saturday September 28, @10:44PM | |
| Author | janrinok | |
| Topic | ||
| from the driving-down dept. | ||
Investors sold after the investment bank's analysts warned about what they called the 'China butterfly effect':
Shares of General Motors and Ford Motor traded lower on Wednesday after Morgan Stanley downgraded the overall U.S. auto sector, citing worries that Western automakers might struggle in the intensifying competition with Chinese rivals.
General Motors was downgraded to "underweight" from "equal weight," and its shares fell 5.4 percentage points, to $45.50. Ford went to "equal weight" from "overweight," with its shares dropping more than 4 percentage points, to $10.43.
Electric vehicle (EV) maker Rivian Automotive and Canadian parts manufacturer Magna International were both downgraded to "equal weight" from "overweight." Shares of Rivian were down 5.7 percentage points while Magna's were off 4.7 percentage points.
Investors sold after Morgan Stanley analysts warned about what they called the "China butterfly effect," a metaphor suggesting that even small surges in China's industrial production capacity could have significant ripple effects across the global market.
[...] Bolstered in part by massive government subsidies, Chinese manufacturers have rapidly emerged as major players in the EV industry, accounting for 60 percent of worldwide EV sales and almost one in five EVs sold in Europe last year.
Both Washington and Brussels have hiked tariffs in response to China's excess production of low-price EVs.
Previously:
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printed from SoylentNews, GM, Ford Shares Dip as Morgan Stanley Downgrades US Auto Industry on 2024-10-06 09:38:30