The major indexes fell for the week, but bounced back from Thursday's intraday lows, especially the Nasdaq. Leading stocks outperformed, with many flashing buy signals to start 2025, including Nvidia. Tesla sold off on weaker-than-expected Q4 deliveries, with annual deliveries falling for the first time.
Market Struggles, Leaders Stand Out
The major indexes retreated for the week, but bounced strongly on Friday. The S&P 500, which undercut its 50-day line Monday, was fighting to regain it Friday. The Nasdaq found support at that key level and rallied to reclaim its 21-day line. A relatively large number of leading stocks from a variety of groups flashed buy signals. Treasury yields retreated from recent highs but not by much. Crude oil rose solidly.
Economic Data Mixed
The latest batch of data presented a mixed economic picture as President-elect Donald Trump prepares to take the reins. So far, a boost in business optimism isn't yet translating into broad-based strength, as stubbornly high interest rates and tariff concerns weigh on new activity. The ISM manufacturing index moved closer to the break-even 50 level, while the new orders gauge showed modest growth. The employment gauge stumbled to 45.3, consistent with staff reductions.
Construction spending for November was flat, missing forecasts for modest growth, with nonresidential construction spending edging lower. Initial jobless claims fell to a low 211,000, but though economists noted there are seasonal adjustment issues this time of year.
Tesla Deliveries Fall Short
Tesla: Tesla reported record fourth-quarter deliveries, but they slightly missed analyst expectations and the company's target for full-year vehicle unit growth. The EV giant produced 459,445 vehicles in Q4 and delivered 495,570 units globally. Tesla delivered 1.789 million vehicles for the year after swelling 38% to 1.81 million in 2023. In the Q3 earnings report, Tesla forecast "slight" vehicle delivery growth in 2024. Tesla also deployed 11 gigawatt-hours of energy storage products in Q4 and 31.4 GWh for the year. Tesla stock tumbled on the delivery figures, falling sharply for the week.
BYD Seizes BEV Crown In Q4
BYD sold 1.524 million EVs in the fourth quarter, more than triple Tesla's global total, with annual sales of 4.27 million, up 41%. Warren Buffett-backed BYD easily bested Tesla in terms of fully electric battery vehicles (BEVs), but just fell short for the full year. For December, BYD, as well as startups Li Auto, XPeng, Nio and Zeekr, all reported record EV sales. While China EV sales keep growing, analysts warn of a race to the bottom as cutthroat competition and overcapacity threaten smaller and unprofitable players. Both Tesla and BYD slashed prices in December, with EV makers extending discounts for January.
GM, Ford EV Sales Power Up
General Motors, Ford Motor and most other auto giants reported robust new vehicle sales for the fourth quarter, a strong finish to a challenging year. GM's Q4 sales surged 21%, well above a 4% gain for 2024. Ford's Q4 sales climbed 9%, also above a 4% increase for the year. In 2024, EV sales boomed 125% for GM and 38% for Ford. In contrast, Ford's fossil-fuel car sales were almost flat last year. Toyota reported declining U.S. new vehicle sales in Q4 and 2024. But its EV sales, mostly hybrids, rocketed 53% in 2024 to top 1 million units for the first time. Hyundai and Honda also reported robust EV and hybrid sales growth. Cox Auto analysts forecast 2024 U.S. auto sales rising above 15.8 million units in 2024 on the back of a robust Q4, marking the best year since 2019. The research firm expects U.S. new vehicle sales to grow 3% in 2025.
