Relax, investors! While some ticker feeds might be slow to update or explain price fluctuations, rest assured Delphi Technologies (NYSE:DLPH) hasn't actually lost half the value of its investment Tuesday morning.
If you recall -- and you can read here if you don't -- the company formerly known as Delphi Automotive has planned on separating into two publicly trade entities. The company's powertrain segment will be known as Delphi Technologies, while Aptiv, trading as APTV, will become focused on electric vehicle architecture and driverless vehicle technology.
"Mobility has the power to change the world, and Aptiv has the power to change mobility," Kevin Clark, president and CEO, said in a press release. "Aptiv is built on a strong foundation of industry firsts, and has the knowledge, capability, and agility to win with traditional OEM customers and emerging mobility players. It is a remarkable time to be in our industry, and we are very confident about our future."
It's a good move for Aptiv, as its electric vehicle and driverless technology will be a higher-margin business with more lucrative growth potential as the industry shifts toward autonomous vehicles. Separating the two should help Aptiv generate a higher price-to-earnings multiple, and offer investors a more pure play into the autonomous vehicle business going forward.