Auto-related stocks take the chin, with declines of up to 25% in one day

By Philippe van Doorn

CarMax disappointed investors, citing ‘vehicle affordability challenges’, as Tesla shares tumble ahead of its AI day

US stocks sold off again on Thursday, with CarMax and several automakers and parts makers among the worst performers.

The S&P 500 fell 2.1% for the session to a new closing low for 2022, with all but 39 stocks posting declines for the day. The benchmark index was down 23.6% over the year.

The Dow Jones Industrial Average fell 1.5%, while the Nasdaq Composite Index fared the least well, falling 2.8%.

Here’s a year-to-date chart showing the sharp reversal of the recovery that began after the June 16 S&P 500 low:

Shares of CarMax Inc. (KMX) fell 25% on Thursday as the used-car giant released results for its fiscal quarter ended Aug. 31 that missed consensus estimates for sales and earnings among analysts polled by FactSet. The company said its unit sales were impacted by “vehicle affordability issues stemming from widespread inflationary pressures, as well as rising interest rates and low consumer confidence.”

Read:CarMax stock suffers biggest selloff in 22 years as inflation and low consumer confidence drive major shortfall

Several automakers were among the worst performing US stocks of the day, including Ford Motor Co. (F), General Motors Co. (GM) and Tesla Inc. (TSLA). OEMs were not spared, with BorgWarner Inc. (BWA) and Aptvi PLC (APTV) also sinking.

Tesla’s AI Day will take place on September 30, during which CEO Elon Musk is expected to showcase the company’s prototype “Optimus” robot and the development of its Full Self-Driving (FSD) technology. While pricing Tesla as a “buy,” with a price target of $360, Wedbush analyst Dan Ives wrote in a note to clients on Sept. 29 that “Musk has faced skeptics as the street focuses on short-term improvements in battery technology, capacity builds (Berlin, Austin) and fending off growing competition from electric vehicles from all angles globally, not robots humanoids.”

Worst performers among the S&P 500

More than 90% of S&P 500 member companies declined on Thursday. Here are the 20 stocks in the benchmark that have fallen the most:

Company                              Ticker  Sept. 29 price change  September price change  2022 price change  Decline from 52-week intraday high  Date of 52-week intraday high 
CarMax Inc.                           KMX                   -24.6%                  -26.3%             -50.0%                              -58.2%                     11/08/2021 
SolarEdge Technologies Inc.           SEDG                   -8.3%                  -14.6%             -16.0%                              -39.6%                     11/22/2021 
Royal Caribbean Group                 RCL                    -7.9%                    6.9%             -43.2%                              -55.6%                     11/08/2021 
Generac Holdings Inc.                 GNRC                   -7.1%                  -21.0%             -50.5%                              -66.8%                     11/02/2021 
Carnival Corp.                        CCL                    -6.8%                   -3.2%             -54.5%                              -66.1%                     09/28/2021 
Tesla Inc.                            TSLA                   -6.8%                   -2.7%             -23.9%                              -35.3%                     11/04/2021 
Aptiv PLC                             APTV                   -6.4%                  -13.9%             -51.2%                              -55.5%                     11/04/2021 
Edison International                  EIX                    -6.3%                  -15.2%             -15.8%                              -21.6%                     04/21/2022 
Advanced Micro Devices Inc.           AMD                    -6.2%                  -24.4%             -55.4%                              -61.0%                     11/30/2021 
Boeing Co.                             BA                    -6.1%                  -21.8%             -37.7%                              -46.4%                     11/15/2021 
Caesars Entertainment Inc.            CZR                    -6.0%                  -24.8%             -65.3%                              -72.9%                     10/01/2021 
V.F. Corp.                            VFC                    -5.8%                  -25.8%             -58.0%                              -61.0%                     11/16/2021 
Ford Motor Co.                         F                     -5.8%                  -24.7%             -44.8%                              -55.7%                     01/13/2022 
General Motors Co.                     GM                    -5.6%                  -13.0%             -43.3%                              -50.5%                     01/05/2022 
Lumen Technologies Inc.               LUMN                   -5.6%                  -25.9%             -41.2%                              -49.1%                     11/05/2021 
BorgWarner Inc.                       BWA                    -5.6%                  -16.0%             -29.7%                              -36.8%                     01/13/2022 
Norwegian Cruise Line Holdings Ltd.   NCLH                   -5.3%                    6.0%             -33.2%                              -52.9%                     11/05/2021 
PPL Corp.                             PPL                    -5.2%                  -10.8%             -13.7%                              -16.3%                     08/17/2022 
Xcel Energy Inc.                      XEL                    -5.2%                  -12.0%              -3.5%                              -15.8%                     09/12/2022 
Dominion Energy Inc.                   D                     -5.1%                  -13.1%              -9.5%                              -20.0%                     04/11/2022 
                                                                                                                                                                 Source: FactSet 

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-Philip van Doorn


(END) Dow Jones Newswire

09-30-22 0641ET

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