this S&P 500 IndexOn Tuesday, the index’s seven-day upward momentum was exhausted, with the index falling 0.38% to 6,714.59 points. Bad news from US automakers Ford (F) , Tesla (Tesla) and General Motors (General Motors) The plunge is partially responsible.
As stated in our daily live blog, Today’s stock marketShares of the four companies fell 6.1%, 4.5% and 1.6% on Tuesday. The bad news comes as these companies are facing difficulties such as new Trump tariffs, high interest rates and weak consumer spending.
However, despite the constant spread of bad news about the industry, there is no single explanation for the decline of the three companies. We explore:
Earlier today, the Wall Street Journal reported that a “devastating fire” occurred at a Nobelis factory New York aluminum plants may mean that domestic automakers will experience a shortage of aluminum plates in the coming months.
This is especially bad news for the factory’s biggest customers: Ford Motor (F) the company relies on aluminum plates to build its best-selling F-150 pickup truck. The Wall Street Journal reported that the factory may remain in a state of shutdown until “early next year.”
In fact, the issue is considered so bad that Ford may address the issue on a shareholder call later this month. Affected by the news, the company’s shares fell more than 6.1% on Tuesday.
Recently, Tesla (Tesla) A major announcement will be issued on Tuesday, raising hopes that the automaker may eventually launch a new low-cost car to join its lineup.
Instead, it just launched the cheaper 2026 Model 3 and Model Y sedans. After the news broke, Tesla’s stock price fell 4.45%.
Compared to the existing “advanced” fleet options, the new “standard” model uses rear-wheel drive, with less range and less features. However, they are more approachable: The Model Y starts at $39,990 and the Model 3 starts at $36,990.
These prices may help the company cope with the end of the federal electric vehicle (EV) tax credit, but how much it can play remains to be seen, especially if consumers show reluctance to buy large amounts. This bad news puts pressure on competing electric vehicle companies, e.g. North Star State University of New York (-5.28%), Ideal Car (plum) (-2.41%), Rivian (Rivigne) (-1.78%).
In addition, political disputes with CEO Elon Musk have continued, causing the brand’s former fans to leave. Purchase intention has also dropped significantly, especially overseas.
Ended a bad day for automakers General Motors (General Motors) and Strantis (STLA) I got some bad news from the government: They want to get $1.1 billion back.
