Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Ford (NYSE:F) and its peers.
Much capital investment and technical know-how are needed to manufacture functional, safe, and aesthetically pleasing automobiles for the mass market. Barriers to entry are therefore high, and auto manufacturers with economies of scale can boast strong economic moats. However, this doesn’t insulate them from new entrants, as electric vehicles (EVs) have entered the market and are upending it. This has forced established manufacturers to not only contend with emerging EV-first competitors but also decide how much they want to invest in these disruptive technologies, which will likely cannibalize their legacy offerings.
The 6 automobile manufacturing stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 5.1%.
Luckily, automobile manufacturing stocks have performed well with share prices up 10% on average since the latest earnings results.
Best Q3: Ford (NYSE:F)
Established to make automobiles accessible to a broader segment of the population, Ford (NYSE:F) designs, manufactures, and sells a variety of automobiles, trucks, and electric vehicles.
Ford reported revenues of $50.53 billion, up 9.4% year on year. This print exceeded analysts’ expectations by 9.1%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Ford achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 7.6% since reporting and currently trades at $13.26.
Is now the time to buy Ford? Access our full analysis of the earnings results here, it’s free for active Edge members.
General Motors (NYSE:GM)
Founded in 1908 by William C. Durant, General Motors (NYSE:GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac.
General Motors reported revenues of $48.59 billion, flat year on year, outperforming analysts’ expectations by 7.9%. The business had an incredible quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 27% since reporting. It currently trades at $73.65.
Is now the time to buy General Motors? Access our full analysis of the earnings results here, it’s free for active Edge members.
Lucid (NASDAQ:LCID)
Founded by a former Tesla Vice President, Lucid Group (NASDAQ:LCID) designs, manufactures, and sells luxury electric vehicles with long-range capabilities.
Lucid reported revenues of $336.6 million, up 68.3% year on year, falling short of analysts’ expectations by 3.2%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.
Lucid delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 21.2% since the results and currently trades at $13.61.
Read our full analysis of Lucid’s results here.
Tesla (NASDAQ:TSLA)
Originally founded by Martin Eberhard and Marc Tarpenning in 2003, Tesla (NASDAQ:TSLA) is an electric vehicle company accelerating the world’s transition to sustainable energy.
Tesla reported revenues of $28.1 billion, up 11.6% year on year. This print topped analysts’ expectations by 5.7%. More broadly, it was a satisfactory quarter as it also produced an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.
The stock is down 2.1% since reporting and currently trades at $430.25.
Read our full, actionable report on Tesla here, it’s free for active Edge members.
Rivian (NASDAQ:RIVN)
The manufacturer of Amazon’s delivery trucks, Rivian (NASDAQ:RIVN) designs, manufactures, and sells electric vehicles and commercial delivery vans.
Rivian reported revenues of $1.56 billion, up 78.3% year on year. This number surpassed analysts’ expectations by 4.9%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue estimates.
Rivian achieved the fastest revenue growth among its peers. The stock is up 34.5% since reporting and currently trades at $16.89.
Read our full, actionable report on Rivian here, it’s free for active Edge members.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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