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

Kód výsledku v 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>

Výsledek na webu

<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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Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50206 - Finance

Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2018

Kód důvěrnosti údajů

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

Název statě ve sborníku

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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Počet stran výsledku

6

Strana od-do

172-181

Název nakladatele

Anglo-Americká vysoká škola

Místo vydání

Praha

Místo konání akce

Praha

Datum konání akce

11. 10. 2018

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

000461826900016