Unpacking Q2 Earnings: Tesla (NASDAQ:TSLA) In The Context Of Other Automobile Manufacturing Stocks

Looking back on automobile manufacturing stocks’ Q2 earnings, we examine this quarter’s best and worst performers, 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 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 2.8% on average since the latest earnings results.

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. This print fell short of analysts’ expectations by 1.1%. Overall, it was a disappointing quarter for the company with 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 of the whole group. Interestingly, the stock is up 1.8% since reporting and currently trades at $339.00.

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

Ford scored the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 4.6% since reporting. It currently trades at $11.41.

Is now the time to buy Ford? Access our full analysis of the earnings results 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, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 4.3% since the results and currently trades at $2.33.

Read our full analysis of Lucid’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 came in 0.8% below analysts' expectations. 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 up 9.9% since reporting and currently trades at $34.40.

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

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%. However, 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 4.2% since reporting and currently trades at $55.50.

Read our full, actionable report on General Motors 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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