Shares of several automotive companies, including Ford Motor Company F, General Motors Company GM, Nio Inc NIO and Workhorse Group Inc WKHS, are trading lower amid overall market weakness as stocks fall amid a rise in bond yields and continued concerns over Fed tapering for 2022.
The U.S. 10 Year Treasury yield has continued higher in recent sessions, rising from around the 1.49% level on December 31 to around 1.80% during today's session. This has pressured stocks across sectors and has especially weighed on growth sectors such as tech and EVs.
See Also: Why Nike Shares Are Trading Lower Today
When interest rates rise, the value of future cash flows is reduced for stocks, which in turn lower the valuation of the stock.
The sector has also faced global macro concerns as fears surrounding the COVID-19 omicron variant continue globally.
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