Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Lucid (NASDAQ: LCID) 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%.
While some automobile manufacturing stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.8% since the latest earnings results.
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 print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
"We had our sixth consecutive quarter of record deliveries in Q2 and expect to continue this trend as we ramp up Lucid Gravity production in the second half of the year," said Marc Winterhoff, Interim CEO at Lucid.
Lucid scored the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 2.9% since reporting and currently trades at $2.21.
Is now the time to buy Lucid? 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 a solid beat of analysts’ sales volume estimates and a solid beat of analysts’ adjusted operating income estimates.
Ford achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.9% since reporting. It currently trades at $11.22.
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. As expected, the stock is down 3.9% since the results and currently trades at $319.88.
Read our full analysis of Tesla’s results here.
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. This result lagged analysts' expectations by 0.8%. Taking a step back, it was a mixed quarter as it also logged a solid beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations significantly.
The stock is down 1% since reporting and currently trades at $30.97.
Read our full, actionable report on Winnebago 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 print surpassed analysts’ expectations by 2%. Taking a step back, it was a softer quarter as it logged full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
The stock is down 3.9% since reporting and currently trades at $11.70.
Read our full, actionable report on Rivian 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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