As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the automobile manufacturing industry, including 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 slower Q2. As a group, revenues beat analysts’ consensus estimates by 1.5%.
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.
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. This print exceeded analysts’ expectations by 7.8%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ sales volume estimates and an impressive beat of analysts’ adjusted operating income estimates.
Ford achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 6.1% since reporting and currently trades at $11.57.
Is now the time to buy Ford? Access our full analysis of the earnings results here, it’s free.
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 $775.1 million, down 1.4% year on year, falling short of analysts’ expectations by 0.8%. The business performed better than its peers, but it was unfortunately a mixed quarter with a solid beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations significantly.
The market seems happy with the results as the stock is up 12% since reporting. It currently trades at $35.04.
Is now the time to buy Winnebago? 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. As expected, the stock is down 2.3% since the results and currently trades at $325.25.
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 print beat analysts’ expectations by 1.3%. Aside from that, it was a slower quarter as it logged a significant miss of analysts’ EBITDA estimates and a miss of analysts’ sales volume estimates.
The stock is up 7.1% since reporting and currently trades at $57.05.
Read our full, actionable report on General Motors here, it’s free.
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 result surpassed analysts’ expectations by 2%. However, it was a softer quarter as it produced full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
The stock is flat since reporting and currently trades at $12.17.
Read our full, actionable report on Rivian 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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