As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the automobile manufacturers industry, including Tesla (NASDAQ:TSLA) 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 7 automobile manufacturers stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 3.4%.
In light of this news, share prices of the companies have held steady as they are up 1.7% on average since the latest earnings results.
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 $25.18 billion, up 7.8% year on year. This print fell short of analysts’ expectations by 1%. Overall, it was ain impressive quarter. Tesla beat analysts’ gross margin expectations (19.8% vs 16.9%). That helped it beat on adjusted earnings per share, Adjusted EBITDA, and Free Cash Flow. Additionally, Tesla saw vehicle delivery growth of 6.4% quarter on quarter, the first time this year the company has seen quarter on quarter delivery growth.
Interestingly, the stock is up 60.9% since reporting and currently trades at $343.60.
Is now the time to buy Tesla? Access our full analysis of the earnings results here, it’s free.
Best Q3: 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 $48.76 billion, up 10.5% year on year, outperforming analysts’ expectations by 9.9%. The business had a very strong quarter with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ Wholesale revenue estimates.
General Motors pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 13% since reporting. It currently trades at $55.29.
Is now the time to buy General Motors? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Winnebago (NYSE:WGO)
Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE:WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles.
Winnebago reported revenues of $720.9 million, down 6.5% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
As expected, the stock is down 1.7% since the results and currently trades at $57.11.
Read our full analysis of Winnebago’s results here.
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 $46.2 billion, up 5.5% year on year. This print beat analysts’ expectations by 9.1%. Zooming out, it was a mixed quarter as it also produced a decent beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.
The stock is down 2.7% since reporting and currently trades at $11.06.
Read our full, actionable report on Ford here, it’s free.
Lucid (NASDAQ:LCID)
Lucid (NASDAQ:LCID) produces luxury electric vehicles that combine high-end design with electric technology.
Lucid reported revenues of $200 million, up 45.2% year on year. This result topped analysts’ expectations by 1%. More broadly, it was a mixed quarter as it also logged an impressive beat of analysts’ sales volume estimates but a significant miss of analysts’ adjusted operating income estimates.
The stock is down 5% since reporting and currently trades at $2.11.
Read our full, actionable report on Lucid here, it’s free.
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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