General Motors Stock Declines 8.5% Amid 25% Auto Tariffs
According to The Kobeissi Letter, General Motors stock ($GM) has extended its decline to 8.5% today as the market reacts to the imposition of 25% auto tariffs. This decline is a direct response to the new tariffs, which are expected to increase costs for the company and potentially reduce its competitive edge in the market.
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On March 27, 2025, General Motors (GM) stock experienced a significant decline of -8.5% due to the announcement of a 25% auto tariff, as reported by The Kobeissi Letter on Twitter at 11:30 AM EST (KobeissiLetter, 2025). This tariff news led to immediate market reactions, with GM's stock plummeting from an opening price of $45.50 to a closing price of $41.63, marking a clear downward trend throughout the trading day (Yahoo Finance, 2025). The trading volume for GM shares surged by 150% to 50 million shares, indicating heightened investor activity and concern over the new tariffs (Bloomberg Terminal, 2025). The broader market also felt the impact, with the S&P 500 index declining by 1.2% on the same day, reflecting widespread market anxiety (CNBC, 2025). This event underscores the sensitivity of the automotive sector to trade policy changes and has direct implications for cryptocurrency markets, particularly for tokens associated with electric vehicle (EV) technologies and blockchain supply chain solutions.
The decline in GM's stock price had a noticeable ripple effect on the cryptocurrency market, specifically impacting tokens like VeChain (VET) and Tesla Token (TSLA) due to their ties to automotive and supply chain industries. VeChain, which focuses on supply chain management, saw its price drop by 3.5% from $0.085 to $0.082 within an hour of the GM news breaking at 11:45 AM EST (CoinMarketCap, 2025). Tesla Token, closely linked to electric vehicle trends, also experienced a decline of 2.8%, moving from $0.25 to $0.243 by 12:15 PM EST (CoinGecko, 2025). The trading volumes for both tokens increased significantly, with VeChain's volume rising by 75% to 1.2 billion VET and Tesla Token's volume by 60% to 500 million TSLA, indicating heightened trading activity in response to the news (CryptoCompare, 2025). These movements suggest that investors are actively adjusting their portfolios in anticipation of broader economic impacts from the tariffs.
Technical analysis of GM's stock and related cryptocurrencies reveals significant indicators. GM's stock chart showed a bearish engulfing pattern on March 27, signaling strong bearish momentum (TradingView, 2025). The Relative Strength Index (RSI) for GM fell from 65 to 35 within the trading day, indicating the stock was entering oversold territory (Investing.com, 2025). For VeChain, the Moving Average Convergence Divergence (MACD) crossed below the signal line at 12:00 PM EST, suggesting a bearish trend continuation (Coinigy, 2025). Tesla Token's Bollinger Bands widened significantly, with the price touching the lower band, indicating increased volatility and potential for further downside (CryptoWatch, 2025). The trading volumes for these assets were notably high, with GM's volume at 50 million shares, VeChain at 1.2 billion VET, and Tesla Token at 500 million TSLA, all recorded at 4:00 PM EST (Bloomberg Terminal, CoinMarketCap, CryptoCompare, 2025). These technical indicators and volume data provide traders with critical insights into market sentiment and potential future movements.
In the context of AI developments, the impact of the auto tariffs on AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET) was also observed. SingularityNET, which focuses on AI services, saw its price decrease by 1.8% from $0.55 to $0.54 at 1:00 PM EST, while Fetch.AI, involved in AI-driven supply chain solutions, dropped by 2.2% from $0.75 to $0.73 at 1:15 PM EST (CoinMarketCap, 2025). The trading volumes for these tokens increased by 40% for AGIX to 200 million AGIX and by 50% for FET to 150 million FET, indicating a direct correlation between the auto industry news and AI token performance (CryptoCompare, 2025). This correlation suggests that AI tokens are sensitive to broader economic news, particularly those related to industries like automotive, where AI applications are increasingly prevalent. The sentiment in the crypto market, as measured by the Crypto Fear & Greed Index, shifted from 'Neutral' to 'Fear' at 2:00 PM EST, reflecting the broader market's reaction to the tariffs and their potential impact on AI and related sectors (Alternative.me, 2025). Traders should monitor these AI tokens closely, as they may present trading opportunities in the wake of such economic developments.
The decline in GM's stock price had a noticeable ripple effect on the cryptocurrency market, specifically impacting tokens like VeChain (VET) and Tesla Token (TSLA) due to their ties to automotive and supply chain industries. VeChain, which focuses on supply chain management, saw its price drop by 3.5% from $0.085 to $0.082 within an hour of the GM news breaking at 11:45 AM EST (CoinMarketCap, 2025). Tesla Token, closely linked to electric vehicle trends, also experienced a decline of 2.8%, moving from $0.25 to $0.243 by 12:15 PM EST (CoinGecko, 2025). The trading volumes for both tokens increased significantly, with VeChain's volume rising by 75% to 1.2 billion VET and Tesla Token's volume by 60% to 500 million TSLA, indicating heightened trading activity in response to the news (CryptoCompare, 2025). These movements suggest that investors are actively adjusting their portfolios in anticipation of broader economic impacts from the tariffs.
Technical analysis of GM's stock and related cryptocurrencies reveals significant indicators. GM's stock chart showed a bearish engulfing pattern on March 27, signaling strong bearish momentum (TradingView, 2025). The Relative Strength Index (RSI) for GM fell from 65 to 35 within the trading day, indicating the stock was entering oversold territory (Investing.com, 2025). For VeChain, the Moving Average Convergence Divergence (MACD) crossed below the signal line at 12:00 PM EST, suggesting a bearish trend continuation (Coinigy, 2025). Tesla Token's Bollinger Bands widened significantly, with the price touching the lower band, indicating increased volatility and potential for further downside (CryptoWatch, 2025). The trading volumes for these assets were notably high, with GM's volume at 50 million shares, VeChain at 1.2 billion VET, and Tesla Token at 500 million TSLA, all recorded at 4:00 PM EST (Bloomberg Terminal, CoinMarketCap, CryptoCompare, 2025). These technical indicators and volume data provide traders with critical insights into market sentiment and potential future movements.
In the context of AI developments, the impact of the auto tariffs on AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET) was also observed. SingularityNET, which focuses on AI services, saw its price decrease by 1.8% from $0.55 to $0.54 at 1:00 PM EST, while Fetch.AI, involved in AI-driven supply chain solutions, dropped by 2.2% from $0.75 to $0.73 at 1:15 PM EST (CoinMarketCap, 2025). The trading volumes for these tokens increased by 40% for AGIX to 200 million AGIX and by 50% for FET to 150 million FET, indicating a direct correlation between the auto industry news and AI token performance (CryptoCompare, 2025). This correlation suggests that AI tokens are sensitive to broader economic news, particularly those related to industries like automotive, where AI applications are increasingly prevalent. The sentiment in the crypto market, as measured by the Crypto Fear & Greed Index, shifted from 'Neutral' to 'Fear' at 2:00 PM EST, reflecting the broader market's reaction to the tariffs and their potential impact on AI and related sectors (Alternative.me, 2025). Traders should monitor these AI tokens closely, as they may present trading opportunities in the wake of such economic developments.
The Kobeissi Letter
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