KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Key Takeaway
U.S. auto sales got a strong boost in August thanks to record electric vehicle (EV) demand, but the momentum looks temporary as federal tax credits worth $7,500 expire at the end of September. Automakers are already bracing for a slowdown with layoffs, production cuts, and shifting strategies.
EV Sales Surge in August
Overall U.S. new-vehicle sales rose 3.7% YoY in August to an annualized rate of 16.4 million units.
EVs and plug-in hybrids grabbed 11% market share, up from the usual 8%, as buyers rushed to lock in federal credits before they expire Sept. 30.
GM hit a record with 21,000 EVs sold across Chevrolet, Cadillac, and GMC.
Hyundai’s EV sales jumped 72%, led by the Ioniq 5.
Honda’s Prologue SUV soared nearly 80%, its best month yet.
Ford EV sales rose 19%, with the Mustang Mach-E hitting a record.
Tesla slipped 6.7%, facing more competition and consumer pushback tied to Elon Musk’s politics.
Automakers Brace for Post-Credit Drop
GM will cut a shift at its Tennessee plant for six months and launch the new Bolt with one shift instead of two.
Volkswagen will slow production and furlough 160 workers in Tennessee.
Rivian laid off several hundred employees as it preps for a lower-cost SUV next year.
Tariffs, Costs, and Margins
U.S. tariffs have already shaved $12 billion+ from automakers’ bottom lines this year.
Prices have risen only 1.5% YTD, as companies avoid large hikes to protect market share.
Automakers are banking on possible tariff relief, especially on Mexico imports, which remain a key production hub.
Outlook for Investors
Short-term headwind: EV demand could dip in Q4 as tax incentives vanish and automakers scale back production.
Long-term view: Hyundai and GM are still growing their EV portfolios, while Tesla faces slowing U.S. momentum.
Watch list: GM, Ford, Hyundai, Tesla, and Rivian as key plays in a volatile EV landscape.
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