Shares of Tesla, Apple, and Caterpillar Fall Due to Disappointing Economic Data
- Wednesday, October 16, 2024
Shares of Tesla, Apple, and Caterpillar were all experiencing a decline as a result of the recently released disappointing economic data. These companies, which heavily rely on sales from China, saw a decrease in their stock prices.
The National Bureau of Statistics recently reported that China's gross domestic product (GDP) expanded by 5.2% in the fourth quarter of 2023. While this figure was slightly higher than the Chinese government's target of around 5% growth, it still represents one of the lowest levels in decades.
Tesla's shares were down by 2.9% in recent trading, while Apple and Caterpillar's shares experienced a decline of 1.2% and 2.3%, respectively. It is worth noting that all three companies have a significant sales presence in China, as evidenced by their securities filings. Consequently, weak economic data from China has an adverse impact on their stock prices.
In 2022, Tesla generated a total revenue of $81.46 billion, with approximately 22% or $18.15 billion coming from China. Apple reported total net sales of about $383 billion in 2023, with the Greater China region accounting for $72.56 billion or approximately 19% of the total sales. Caterpillar recorded a total sales and revenue of $59.43 billion in 2022, with the Asia/Pacific region contributing $11.89 billion or around 20% of the sales.
It is important to note that these three companies were not the only ones affected by the disappointing economic data. Chinese stocks also experienced a decline, with companies such as Alibaba Group Holding, JD.com, and PDD Holdings witnessing drops in their American depositary receipts (ADRs).
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