MODELLING THE DYNAMIC CONDITIONAL CORRELATIONS: THE CASE OF COBALT AND LITHIUM PRICE INCREASE AND VOLATILITY OF TESLA MOTORS INC. SHARES

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F18%3A10240856" target="_blank" >RIV/61989100:27510/18:10240856 - isvavai.cz</a>

Result on the web

<a href="https://www.aauni.edu/data/files/sbornik-ifrs-verze2.pdf" target="_blank" >https://www.aauni.edu/data/files/sbornik-ifrs-verze2.pdf</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

MODELLING THE DYNAMIC CONDITIONAL CORRELATIONS: THE CASE OF COBALT AND LITHIUM PRICE INCREASE AND VOLATILITY OF TESLA MOTORS INC. SHARES

Original language description

In recent years, a significant increase of demand for lithium and cobalt has led to a high increase of the price of these commodities due to their reduced availability. Cobalt and lithium are source of power batteries that are utilized in electric cars. Tesla Motors Inc. company became a key player on electric vehicles market. The stability of production of electric vehicles and their subsequent commercialization is affected by many risk factors. The shortage of renewal of cobalt and lithium, limited resources and the instability of some supplier countries like D. R. of Congo are some of them. The dependence of Tesla Motors Inc. on these two metals is evident. In addition to this, the profit of Tesla Motors Inc. reached negative values despite of annual revenue growth. Operating costs including raw materials for batteries (lithium cobalt included) grew proportionately. The aim of this paper is to model prices shocks of cobalt and lithium on Tesla Motors Inc. volatility. In this paper, the Dynamic Conditional Correlations model has been estimated to examine potential effects of cobalt and lithium price fluctuations on volatility of Tesla shares. The results of estimated models suggested that changes in lithium price have statistically significant impact on volatility of Tesla Motors Inc. shares during testing period of 2013-2017. In the case of cobalt prices fluctuations, the hypothesis of significant impact on Tesla Motors Inc. volatility can be rejected.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50206 - Finance

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2018

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

IFRS: Global Rules &amp; Local Use : proceedings of the 6th international scientific conference : Prague, October 11-12, 2018

ISBN

978-80-906585-7-8

ISSN

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e-ISSN

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Number of pages

6

Pages from-to

172-181

Publisher name

Anglo-Americká vysoká škola

Place of publication

Praha

Event location

Praha

Event date

Oct 11, 2018

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

000461826900016