General Strike
After closing out last week at $38.83, General Motors stock was down more than 4.5 percent, trading at around $37.17 by mid-afternoon on Monday.
The drop comes as a response to the news that much of its labour force was going on strike.
Numerous political figures have come out in favour of a swift resolution to the dispute. The President of the United States asked for both sides to reach a deal, while several Democrats seeking to replace him spoke out in support of the strikers.
Tumbledown Tesla
Elon Musk’s mission to build the first electric vehicle empire appears less likely than it did at this time last year. Tesla stock is down about 37 percent over the same period last year.
Some investors fear the proliferation of low-cost electric vehicles from other OEMs might prevent Tesla from ever reaching sustainable profitability.
By the middle of the 2020s, it is expected that there will be more than 50 electric vehicle models for sale to North American consumers.
The company also split from its chief technology officer, JB Straubel, in July. That quarter, Tesla also faced larger losses than had been anticipated.
Axalta’s Big News
Not all acquisitions generate excitement.
News that Axalta Coating Systems is acquiring a United Arab Emirates-based powder-coatings company, Capital Paint, was greeted with minimal excitement from investors. Within three hours of the announcement, the stock price dropped by a negligible third of a.
The acquisition of the Middle Eastern company, which deals in architectural–not automotive–paints, could be a harbinger of bigger changes at Axalta.
Executives have already indicated plans to increase the business’s presence in the region.
November 14, 2024
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