A Look Back at Automobile Manufacturing Stocks' Q2 Earnings: General Motors (NYSE:GM) Vs The Rest Of The Pack

Looking back on automobile manufacturing stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including General Motors (NYSE:GM) 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 2.5% since the latest earnings results.

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 exceeded analysts’ expectations by 1.3%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EBITDA estimates and a miss of analysts’ sales volume estimates.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $53.49.

Read our full report on General Motors 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 an impressive beat of analysts’ adjusted operating income estimates.

Ford delivered the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.9% since reporting. It currently trades at $11.33.

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 1.7% since the results and currently trades at $327.41.

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 print missed analysts’ expectations by 0.8%. Taking a step back, it was a mixed quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations significantly.

The stock is down 2.5% since reporting and currently trades at $30.50.

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 result topped analysts’ expectations by 2%. More broadly, 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 2.9% since reporting and currently trades at $11.83.

Read our full, actionable report on Rivian here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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