Research PaperNo Access

Exploring the Cross-Correlations between Tesla Stock Price, New Energy Vehicles and Oil Prices: A Multifractal and Causality Analysis

Xingyue Gong

https://orcid.org/0009-0002-3301-9237

College of physical and Electronics Engineering, Sichuan Normal University, Chengdu 610000, P. R. China

Hope College, Southwest Jiaotong University, Chengdu, P. R. China

E-mail Address: 2943142452@qq.com

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and

Guo-Zhu Jia

https://orcid.org/0000-0002-1650-4276

College of physical and Electronics Engineering, Sichuan Normal University, Chengdu 610000, P. R. China

E-mail Address: 309739124@qq.com

Corresponding author.

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https://doi.org/10.1142/S021947752450024XCited by:3 (Source: Crossref)

Abstract

The interaction between new energy vehicle (NEV) stock prices and the crude oil market is crucial for resource allocation and risk management. This study employs Multifractal detrended cross-correlation analysis (MF-DCCA) to investigate the multifractal characteristics of the cross-correlation between Tesla stock price (TSLA) and crude oil price (Brent), as well as between TSLA and other NEV stocks (excluding TSLA). The experimental results reveal long-term persistence and multiple fractal characteristics in the cross-correlations. Additionally, multifractal asymmetric detrended cross-correlation analysis (MF-ADCCA) demonstrates the asymmetry of the cross-correlation during upward or downward trends between TSLA and Brent, as well as between TSLA and other NEV stocks (excluding TSLA). Furthermore, utilizing the transfer entropy (TE) method, we assess the strength and direction of information flows between TSLA and Brent, and between TSLA and other NEV stocks (excluding TSLA). Interestingly, we observe bidirectional information transmission between TSLA and other NEV stocks, while only unidirectional information transmission from NIO to TSLA is evident. These findings provide valuable insights for resource allocation, supply chain management and sustainable development strategies for decision-makers in the NEV market.

Communicated by Wei-Xing Zhou

Keywords:

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