Today in the Market (1/3/2024)

Good Morning! On Wednesday, U.S. equities declined as the initial enthusiasm for quick interest-rate reductions diminished due to the release of new employment statistics and the Federal Reserve meeting minutes, which indicated uncertainty on the timing of rate cuts.

It was a red day for the market, with the S&P 500 falling by 0.80%, the Dow Jones decreasing by 0.76%, and the Nasdaq sliding by 1.18%.

GROWTH INTO 2024!

Despite the fact that strikes had an impact on its Q4 US sales, General Motors (GM) reported a slight increase. By how much? The firm had a 14.1% increase in revenue for the year, and it anticipates more growth in 2024.

Let’s dive deeper! GM reported a significant increase in sales, with 2.6 million cars in 2023, marking the company’s most successful year since 2019. The automaker also expanded its market share by 0.3% to reach a total of 16.3% in the U.S. This was still done with the outcomes influenced by the UAW labor strike, which extended into the beginning of the quarter. 

Going forward! GM projects that the overall sales of the US car sector will reach 16 million in 2024, representing a significant recovery from the impact of the pandemic. In 2022, just 13.4 million vehicles were sold, marking the lowest sales in ten years.

MOVE OTHER!

In an unforeseen event, Tesla (TSLA) witnessed fewer electric vehicle (EV) sales during a quarter compared to the Chinese electric car manufacturer BYD, which secured the leading position in all-electric sales for Q4 2023. But how? The battery producer-turned-automobile, supported by Warren Buffett, expanded rapidly, in part because of its capacity for large-scale production of its own batteries.

So how badly did Tesla lose? During the last quarter of 2023, BYD managed to sell 526,000 electric cars, surpassing Tesla’s sales of 484,500. According to Nikkei, the firm had a 73% increase in sales of electric cars (EVs) compared to the previous year. They delivered a total of 1.57 million automobiles, with a similar number of plug-in hybrids sold.

BYD isn’t stopping there, though! While most of BYD’s sales still occur inside China, its overseas shipments grew almost three times in 2023. Moreover, it poses a significant challenge to car giants Volkswagen and Renault by planning to establish their first European electric vehicle manufacturing facility in Hungary.

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