The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Rivian (NASDAQ:RIVN) and the rest of the automobile manufacturing stocks fared in Q2.
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 slower Q2. As a group, revenues beat analysts’ consensus estimates by 1.5%.
Thankfully, share prices of the companies have been resilient as they are up 6.4% on average since the latest earnings results.
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 $1.30 billion, up 12.5% year on year. This print exceeded analysts’ expectations by 2%. Despite the top-line beat, it was still a softer quarter for the company with full-year EBITDA guidance missing analysts’ expectations significantly and a miss of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 15.2% since reporting and currently trades at $14.03.
Is now the time to buy Rivian? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $50.18 billion, up 5% year on year, outperforming analysts’ expectations by 7.8%. The business had an exceptional quarter with an impressive beat of analysts’ sales volume estimates and a solid beat of analysts’ adjusted operating income estimates.
Ford pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 7.7% since reporting. It currently trades at $11.75.
Is now the time to buy Ford? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $22.5 billion, down 11.8% year on year, falling short of analysts’ expectations by 1.1%. It was a disappointing quarter as it posted a miss of analysts’ revenue estimates, as the miss in Energy trumped the beat in Services and in-line print for Automotive and a significant miss of analysts’ operating income estimates.
Tesla delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 11.2% since the results and currently trades at $370.44.
Read our full analysis of Tesla’s results here.
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 $47.12 billion, down 1.8% year on year. This number beat analysts’ expectations by 1.3%. Aside from that, it was a slower quarter as it recorded a significant miss of analysts’ EBITDA estimates and a miss of analysts’ sales volume estimates.
The stock is up 9.9% since reporting and currently trades at $58.52.
Read our full, actionable report on General Motors here, it’s free.
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 $259.4 million, up 29.3% year on year. This result met analysts’ expectations. Zooming out, it was a softer quarter as it logged a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Lucid delivered the fastest revenue growth among its peers. The stock is down 18.5% since reporting and currently trades at $19.85.
Read our full, actionable report on Lucid here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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