Why GM, Ford, Stellantis Are In Reverse Gear In Premarket Today

Legacy automakers such as Stellantis NV STLA, Ford Motor Company F and General Motors Corp. GM were moving lower on fears that Tesla’s price cuts will impact their sales.

What Happened: According to Benzinga Pro data, General Motors was sliding 2.56%, to $37.35, in premarket trading on Friday, Ford was falling 3.20%, to $13, and Stellantis was down 3.68%, to $15.44.

See Also: Best Auto Manufacturer Stocks Right Now

Tesla, on Friday, sharply cut prices of all its electric vehicle models, sending the stock lower in premarket trading. Automakers are moving in sympathy as the 6.4% to 19.7% reductions announced by Tesla could impact demand for their ICE vehicle lineup.

The lowest price of a Tesla vehicle will be the company’s base Model 3 variant at $46,990. With the $7,500 federal EV subsidy, it could come even cheaper at $36,490. Meanwhile, Ford brand’s average transaction price, excluding that of the Lincoln luxury brand, rose 3.3% month-over-month to $55,943 in December, according to Ford Authority.

As Tesla’s models are now price-competitive with the legacy automakers, it is likely customers will gravitate toward its environment-friendly EVs.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsPre-Market OutlookTrading Ideaselectric vehiclesEVsTesla Model 3why it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!