Latest news with #EdisonYu
Yahoo
13-05-2025
- Automotive
- Yahoo
Car dealers shield buyers from tariff price hikes in April
The April Consumer Price Index (CPI) report revealed new car prices were flat, a surprise as many felt President Trump's auto sector tariffs would boost prices. But inventory at dealerships may have shielded car buyers from tariff price hikes, at least for now. In April, new vehicle prices came in at no change from the previous month and up 0.3% year over year. Used vehicle prices were down 0.5%, and up 1.5% from a year ago. The report comes on the heels of Trump's 25% foreign-made auto tariffs that began on April 3, affecting not only European and Asian manufacturers, but also Big Three automakers GM (GM), Ford (F), and Stellantis (STLA), which import vehicles from Canada and Mexico, as well as a few models from China. The expectation was for new vehicle prices to climb higher, reflecting the passing of tariff costs on to consumers, as well as a concurrent hike in used vehicle prices as buyers shifted to preowned vehicles. A big reason price hikes were minimized could have been dealers and automakers eating into their preexisting new car inventory, which includes imports that were not tariffed. Dealers were not shy about promoting tariff-free inventory to buyers as a sales tactic in the competitive new car sales landscape. Not surprisingly, the number of cars on the lot is shrinking. Vehicle data and buying site CarPro reports that overall industry stock in April dropped to 2.6 million vehicles from around 3 million, with days of supply falling to just over 60. The average is around 70 days of supply, CarPro said, with different manufacturers maintaining different levels. For instance, Toyota (TM) has around 10 to 15 days of supply, whereas GM maintains around 50 to 60 days. Stellantis, during its troubled summer of 2024, had over 100 days' supply in the US, though that has come down substantially. Meanwhile, Hyundai (up 19%), Honda (up 17%), Ford (up 15%), and Toyota (up 8%) saw huge sales gains in April. (Note: GM and Stellantis do not report monthly sales.) Another reason why prices may have stayed unchanged is that several automakers, including Hyundai, guaranteed pricing through the end of May, CarPro said. The firm also said shipments will soon be tariff-exposed, and further supply and pricing pressures are expected in the weeks ahead. The question is how long the automakers can hold the line on prices. 'Across OEMs, we continue to monitor post-tariff reactions, with GM saying that it will not raise prices across the board but continue to see consistent pricing (up 0.5%-1.0% for the year), and Ford extending employee pricing on most vehicles until July 4 (vs. June 2 previously) while hiking prices on Mexico-built vehicles,' Deutsche Bank's Edison Yu wrote in a note Tuesday morning. Kelley Blue Book (KBB), which tracks average transaction prices (ATP) at the dealership level, actually saw prices climb 2.5% month over month in April, more than double the average monthly move in April. A KBB spokesman told Yahoo Finance that timing and different data sources may have led to the deviations between KBB's numbers and the government's CPI reading. CPI data may be a bit older than KBB's, the spokesman said, meaning CPI data may be more of a trailing indicator than KBB's. With tariffs on foreign-made autos still on the table, prices are expected to rise, meaning April's lack of change in pricing may be a blip. As Deutsche Bank noted above, Ford is already raising prices on its Mexican-built Ford Maverick, Bronco Sport, and Mustang Mach-E EV. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
Yahoo
13-05-2025
- Automotive
- Yahoo
Car dealers shield buyers from tariff price hikes in April
The April Consumer Price Index (CPI) report revealed new car prices were flat, a surprise as many felt President Trump's auto sector tariffs would boost prices. But inventory at dealerships may have shielded car buyers from tariff price hikes, at least for now. In April, new vehicle prices came in at no change from the previous month and up 0.3% year over year. Used vehicle prices were down 0.5%, and up 1.5% from a year ago. The report comes on the heels of Trump's 25% foreign-made auto tariffs that began on April 3, affecting not only European and Asian manufacturers, but also Big Three automakers GM (GM), Ford (F), and Stellantis (STLA), which import vehicles from Canada and Mexico, as well as a few models from China. The expectation was for new vehicle prices to climb higher, reflecting the passing of tariff costs on to consumers, as well as a concurrent hike in used vehicle prices as buyers shifted to preowned vehicles. A big reason price hikes were minimized could have been dealers and automakers eating into their preexisting new car inventory, which includes imports that were not tariffed. Dealers were not shy about promoting tariff-free inventory to buyers as a sales tactic in the competitive new car sales landscape. Not surprisingly, the number of cars on the lot is shrinking. Vehicle data and buying site CarPro reports that overall industry stock in April dropped to 2.6 million vehicles from around 3 million, with days of supply falling to just over 60. The average is around 70 days of supply, CarPro said, with different manufacturers maintaining different levels. For instance, Toyota (TM) has around 10 to 15 days of supply, whereas GM maintains around 50 to 60 days. Stellantis, during its troubled summer of 2024, had over 100 days' supply in the US, though that has come down substantially. Meanwhile, Hyundai (up 19%), Honda (up 17%), Ford (up 15%), and Toyota (up 8%) saw huge sales gains in April. (Note: GM and Stellantis do not report monthly sales.) Another reason why prices may have stayed unchanged is that several automakers, including Hyundai, guaranteed pricing through the end of May, CarPro said. The firm also said shipments will soon be tariff-exposed, and further supply and pricing pressures are expected in the weeks ahead. The question is how long the automakers can hold the line on prices. 'Across OEMs, we continue to monitor post-tariff reactions, with GM saying that it will not raise prices across the board but continue to see consistent pricing (up 0.5%-1.0% for the year), and Ford extending employee pricing on most vehicles until July 4 (vs. June 2 previously) while hiking prices on Mexico-built vehicles,' Deutsche Bank's Edison Yu wrote in a note Tuesday morning. Kelley Blue Book (KBB), which tracks average transaction prices (ATP) at the dealership level, actually saw prices climb 2.5% month over month in April, more than double the average monthly move in April. A KBB spokesman told Yahoo Finance that timing and different data sources may have led to the deviations between KBB's numbers and the government's CPI reading. CPI data may be a bit older than KBB's, the spokesman said, meaning CPI data may be more of a trailing indicator than KBB's. With tariffs on foreign-made autos still on the table, prices are expected to rise, meaning April's lack of change in pricing may be a blip. As Deutsche Bank noted above, Ford is already raising prices on its Mexican-built Ford Maverick, Bronco Sport, and Mustang Mach-E EV. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram. Sign in to access your portfolio
Yahoo
16-04-2025
- Business
- Yahoo
Why EHang Stock Is Gaining Altitude Today
Shares of companies developing electric vertical take-off and landing (eVOTL) aircraft have been hit hard by the recent market sell-off. But at least one investment bank thinks shares of EHang Holdings (NASDAQ: EH) have been hit too hard. EHang stock climbed as much as 13% on Monday and was up 8% as of 1:30 E.T. after the stock was upgraded to a buy at Deutsche Bank. EHang is a Chinese company that is one of a number of start-ups racing to commercialize eVTOL technology, a hybrid design that blends the flight capabilities of a helicopter with the stability of a small plane. The battery-powered aircraft are envisioned as a more efficient way to bypass city traffic jams and to feed passengers onto larger aircraft. Speculative stocks have been hit hard by the current sell-off, leaving EHang down 40% from where it was in February. Deutsche Bank analyst Edison Yu thinks that is an overreaction and upgraded the shares to buy, from hold. The analyst sees the sell-off as an attractive entry point, arguing that China is in the early stages of cultivating eVOTL technology. Yu's price target is $20, down from $22, but that price is nearly 30% higher than where the stock currently trades. All eVOTL stocks are speculative at this point, with the industry still in the early stages of development. But EHang appears to be among a small number of companies that are out in front of the pack, and as the Deutsche Bank analyst notes, China's regulatory environment appears welcoming to this new tech. For investors with the patience to ride out near-term turbulence, EHang could be an attractive candidate as part of a well-diversified portfolio. Before you buy stock in EHang, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and EHang wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $679,900!* Now, it's worth noting Stock Advisor's total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 14, 2025 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why EHang Stock Is Gaining Altitude Today was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
15-04-2025
- Automotive
- Globe and Mail
'Structural Uncertainty' Means Downgrade at Deutsche Bank for GM Stock (NYSE:GM)
Normally, when an analyst takes aim at a stock and does not like its trajectory, that puts a damper on the stock's performance as a whole. But for legacy automaker General Motors (GM), a downgrade at Deutsche Bank did very little to turn GM on its ear. In fact, GM shares surged nearly 4% in Monday afternoon's trading despite the pan. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Deutsche Bank, via analyst Edison Yu, pivoted his recommendation from Buy to Hold, and also cut the price target down substantially as well. The share target price slid from $58 per share to a new target of $43. That is down 1% against the Friday close, reports noted. The biggest reason? 'Structural uncertainty,' reports noted, all stemming from tariffs. If the tariffs turn out to last for years, becoming 'truly permanent,' then GM will run into those structural challenges. Its responses feature two bits of bad news. If GM 'onshores,' bringing production back to the United States, that means higher capital expense (capex) and, of course, lower profit. Pivoting to robotics to save money will send it afoul of the United Auto Workers (UAW) and politicians as well. But incorporating foreign products in its supply chain will leave it a tariff target. Big Cadillac, Heading for the Sunset Meanwhile, if you were hoping to pick up a huge new Cadillac as a daily driver, your chances are in rapid decline. GM is phasing out the Cadillac XT6 later this year, reports note, as it moves to retool the Spring Hill, Tennessee plant which makes them. The XT6, as it turns out, was an under-performing vehicle. That made for an excellent opportunity for GM to pivot Spring Hill to electric vehicles. Reports noted that the XT6—designed as Cadillac's entry in the 'upscale family hauler' business—never really caught on, with fewer than 20,000 units sold annually since 2019, on average. Some might think that five years is not exactly a lot of time for a car to catch on in the market—especially given how much of those five years were spent under pandemic restrictions—but GM was not taking chances. Taking over for the XT6 at Spring Hill, reports note, will be crossover electric vehicles the Vistiq and the Lyriq. Is GM a Good Stock to Buy Now? Turning to Wall Street, analysts have a Moderate Buy consensus rating on GM stock based on nine Buys, four Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 6.96% rally in its share price over the past year, the average GM price target of $58.10 per share implies 27.97% upside potential. See more GM analyst ratings Disclosure
Yahoo
14-04-2025
- Automotive
- Yahoo
Auto stocks pop as Trump says he's 'looking at something' to help car companies with tariffs
Auto stocks jumped on Monday afternoon after President Trump hinted tariff relief might be coming. 'I'm looking at something to help some of the car companies, where they're switching to parts that were made in Canada, Mexico, and other places, and they need a little bit of time because they're going to make them here,' Trump said, adding that 'they need a little bit of time, so I'm talking about things like that.' Read more about auto stock moves and today's market action. Trump didn't say whether relief was coming for the 25% tariffs already in place for foreign auto imports or the 25% auto parts tariffs that will be finalized by May 3. Even auto imports covered by the USMCA between the US, Mexico, and Canada are subject to tariffs, but parts originating from the US can be backed out of the tariff calculation. Shares of Big Three automakers General Motors (GM), Stellantis (STLA), and Ford (F) all popped in midday trading. Recently, automakers have been scrambling to respond to the daily drip of tariff escalations that began once Trump started his tariff war in earnest following his April 2 "Liberation Day" event. Read more: What Trump's tariffs mean for the economy and your wallet 'Across OEMs, we are beginning to see a dispersion of reactions, ranging from immediate price discounts in the near-term (Ford + Stellantis), to others that will hold prices constant at least for the next 1-2 months before [reevaluating the] situation,' Deutsche Bank analyst Edison Yu wrote in a note to clients last week. 'There is also some capacity re-alignment occurring including GM raising output at its Fort Wayne facility and Stellantis pausing some plant operations in Mexico/Canada.' The effects of tariffs on auto imports and the critical supply chain for parts would hurt the consumer with significantly higher prices. Analyses from various data firms suggest price hikes of $3,000 to as much as $12,000 for non-premium autos, which is expected to result in a meaningful loss in sales. A report from auto research firm Telemetry finds that the US will lose 1.8 million new car sales due to tariffs this year. Cox Automotive's Kelley Blue Book estimated that 15.8 million new cars and light trucks were sold in the US last year. Echoing Telemetry, S&P Global Mobility expects US light-vehicle sales to fall to between 14.5 million and 15 million units annually from 16.0 million vehicles it estimates were sold in 2024. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram. Sign in to access your portfolio
