By Alessandro Albano
Investing.com – Auto and semiconductor sales were down 0.8% after updates from Tesla and Taiwan Semiconductor Manufacturing (BVMF:).
Stellantis (BIT:) recorded the most important losses (-5.4%), followed by Ferrari (BIT:) and STMicroelectronics (BIT:) with declines of approximately 3%.
After the close of Wall Street, Tesla (NASDAQ:) announced that it finished the first quarter with margins below market expectations following several vehicle price cuts in recent months.
With negative effects also on Chinese EV stocks, Elon Musk’s company has made it known that in the coming months “Continued cost reduction of our vehicles is expected,” with operating margins which “have been shrinking at a manageable rate”.
On the sales side, however, the news is positive for Stellantis. As shown on Wednesday by ACEA, the giant born from the merger of PSA Groupe e Fiat Chrysler Automobiles reported a 23% increase in sales in March as it registered 251,122 cars compared to 203,635 in February 2022, with market share down to 17.7% from 18.1% in 2022.
The other big European automakers such as Volkswagen (ETR:) and BMW (ETR:) are also suffering, notwithstanding Renault (EPA:) reported this morning that it was up 30% year-over-year in Q1 revenue.
On the chip side, the effects of geopolitical tensions on the giants of the sector continue to worry, after TSMC communicated a drop in profit and turnover in Q1 compared to the previous quarter.
Recall that Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) had bought TSMC shares for more than 4.1 billion dollars between July and September of last year, then liquidated 86% towards the end of the year due to the tightening of the relations between China and Taiwan.
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