前总统特朗普上台且共和党控制参议院和众议院，这将以多种方式利好传统汽车制造商。Stock prices of Ford Motor and General Motors have significantly increased.
According to Zhītōng Finance app, on Wednesday, the stock prices of Ford Motor (F.US) and General Motors (GM.US) have significantly increased, mainly related to Trump, tariffs, and taxes.
Ford's stock rose by 5.6% in midday trading, reaching $11.19 per share, while the S&P 500 Index and Dow Jones Industrial Average rose by 2.4% and 3.4% respectively. General Motors' stock saw a peak increase of nearly 3%, reaching $54 per share.
With former President Trump back in office and the Republicans controlling the Senate and the House, this will be beneficial for traditional auto manufacturers in various ways.
Firstly, Trump has shown little interest in electric cars and is likely to attempt to abolish tax credits for electric vehicle purchases. This means the growth rate of the US electric car market will slow down. Since Ford and General Motors have not yet profited from selling electric cars, selling fewer electric cars and more gasoline cars will be more advantageous for their product structure.
Tesla only sells electric cars, yet its stock also rose by 14.5% on Wednesday, reaching $288 per share. However, Tesla sells electric cars globally, and with economies of scale, it can still be profitable even without tax credits. Furthermore, Tesla's CEO Musk supporting Trump's presidential campaign is not necessarily a bad thing for the company.
Analyst Ben Kallo from Baird pointed out in a report on Wednesday that not all of the Biden administration's electric vehicle policies will change. He mentioned that some policies encouraging the construction of battery factories are beneficial for both blue states and red states. Nevertheless, Trump's stance on electric cars still has a negative impact. Rivian (RIVN.US) stock price dropped by 8.3%.
In addition, Trump's tariff and tax policies may also benefit Tesla, General Motors, and Ford.
Trump once proposed to lower the corporate tax rate to 15% and provide certain incentives for domestic production in the USA. These three companies all manufacture cars in the USA, therefore they can all benefit from it.
Tariffs on imported foreign autos will help raise domestic prices, while tariffs on Chinese electric cars will protect American auto manufacturers from the threat of Chinese competition, although currently there are no Chinese cars being sold in the USA.
The control of the Republican Party makes it more likely for Trump's tax and tariff policies to be implemented. This is another reason for the rise in stock prices. The reduction of policy uncertainty makes it easier for investors to predict the impact of these policies on the market.
Another reason for Ford's better performance is that in recent trades, General Motors' stocks have outperformed Ford. As of Wednesday, General Motors' stocks have risen by about 17% in the past month, while Ford's share price has remained almost unchanged.
