Tesla stock down on new challenges as Ford sees sales gains
Shares of Tesla (TSLA) fell on Monday as the EV maker's shipments fell in February as it announced price cuts in China.
Shares of Ford (F) have risen as US sales for the company rose 10.5% year-over-year for the month of February.
Yahoo Finance Reporter Pras Subramanian joins the Live show to discuss the the latest developments for these companies and what it could mean for them going forward.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Nicholas Jacobino
Video Transcript
[AUDIO LOGO]
JULIE HYMAN: Tesla shares were hit hard today on concerns coming out of China. Yahoo Finance's Pras Subramanian joins us with the details. 7%, that was quite a drop.
PRAS SUBRAMANIAN: Yeah. I mean, multi-week lows here since I think mid-february, since the last time we saw these levels. Two things here. First off, we saw that shipments fell in February, down 16% sequentially to 60,000 units and down 19% from a year ago.
What's going on here? We had the Chinese Lunar holiday that dropped in February of this year. So that, obviously, depresses economic activity and sales, things like that. Tesla also tends to push out their China shipments later in the quarter. So probably see more of a catch up there in March. But, you know, that combined with also this low amount but combined also with price cuts we saw Tesla initiate here in China of about $4,800 for Model 3 and Model Y vehicles based on insurance subsidies, some options, discounting, things like that.
But both of these things point to potentially a slowdown maybe for them in this once-hot Chinese EV market.
JOSH LIPTON: Let's talk Ford for a second, reports US sales are up 10.5% year-over-year. How did that stack up against the competition there?
PRAS SUBRAMANIAN: Yeah. You know, conversely, you see Ford shares up a lot today compared to Tesla. And they had another strong quarter 10% plus sales gains there. But also, I want to note that Toyota, even though they finished behind them, also had a big-- big month for them for themselves. They were up, I believe, 16%. You had Hyundai up 6%.
Kia down a little bit, but both Honda and Kia saw a strong EV sales. And then also Honda up 37.8% in February. I mean, a lot of it is compared to last year when these Japanese automakers had some supply issues and things like that. But again, it kind of shows you that maybe the US auto market is more resilient than we think it is heading into what could be some uncertainty there with high prices and interest rates.
