The stocks of Tesla, the electric vehicle maker that is expected to take a big hit from a new tax plan that affects the auto industry, and Citgo, the utility company, fell on Wednesday, but the broader market was still up in the air.
The stock price of the global oil and gas group climbed 5.5 per cent to $6,856.27 in morning trade, after the company reported quarterly profit that beat Wall Street forecasts.
The companies reported a record $2.6-billion (U.S.) loss for the quarter, which ended Sept. 30.
Tesla also announced plans to increase production and cut costs in the coming year.
Citgo reported a $2-billion profit for the third quarter.
The two companies together are the world’s largest oil and natural gas company and both have been targeted by the Trump administration for being “too big to fail.”
The Treasury Department has imposed a new $10,000 annual tax on U.S. corporations that earn more than $1 million.
The U.K. Treasury has also imposed a $10-per-trillion tax on oil and coal companies, a move that the Trump government said was designed to curb global carbon emissions.
It’s a tax that, if enacted, would reduce global carbon pollution by about 8 per cent compared with the Obama administration’s goal of cutting it by 28 per cent.
The Trump administration has said the tax would be a win-win for U..
S., British and Canadian companies.
Tesla CEO Elon Musk said the plan will benefit consumers, but Citgo has said it will hurt U.Y.O. workers.
Tesla’s shares fell 2 per cent on Wednesday to $7,921.67, while Citgo dropped 1.7 per cent, to $1,096.67.