Volkswagen Drives D20 Down

Driven by Volkswagen’s huge loss the Driverless Transportation (D20) Stock Index tumbled 5.8 percent and ended last week at 142.05.  The loss was broad based as D20 losers outnumbered gainers 18 to two. On news that the global economy is slowing, both the Dow Jones Industrial Average and the S&P 500 lost value last week although less than the D20 Index. The Dow ended the week at 1631.67, down 0.4 percent while the S&P 500 finished at 1931.34, down 1.4 percent.

A 34.3 percent drop in Volkswagen’s stock price was responsible for over a quarter of the D20 loss for the week. Volkswagen’s ADR (VLKPY) price hit a 52-week low of $21.87 on Monday, less than half its D20 Index high of $54.02 it hit just over six months last March. The automaker’s woes continue to be driven by the diesel pollution testing scandal.  Its CEO has resigned and shareholder lawsuits have arisen.  Volkswagen’s current financial crisis will curtail its ability to invest in driverless technologies as it tries to weather the government fines, shareholder lawsuits, and negative market impact of this scandal.

The lone Chinese company in the D20 Index, BYD Company (BYDDY), shone brightly this week rising almost 6 percent and finishing at $9.91. At 6.16 percent, it is now is the largest component of the D20 Index. BYD has added 17.4 percent to its ADR price since August 28 when the basis for the D20 Index was changed.

Visit the Driverless Transportation D20 Stock Index page to learn more about it and its component stocks.