Ford, GM, Tesla, Rivian, and more car stocks soar as interest rates are expected to drop

From Forbes: 2024-07-12 16:06:28

Ford and GM stocks surged to new highs on Friday, driven by promising inflation data and hopes of lower interest rates. Tesla also saw a 3% increase, while smaller EV makers Rivian and Lucid saw even bigger gains. Other automakers like Toyota and Volkswagen also rose. Car companies benefit directly from rate cuts, as lower interest rates lead to lower auto loan rates, stimulating demand for new cars. Ford and GM pay dividends that become more attractive to investors as interest rates drop. Despite recent struggles during the rate hiking cycle, American car giants are hopeful for growth with potential catalysts on the horizon. Tesla remains the largest car company by market capitalization, valued at 15 times that of Ford.



Read more at Forbes: Ford Stock Hits 2024 High—Leading Car Stock Surge With Tesla, GM, Rivian