Reflecting On Automobile Manufacturing Stocks' Q3 Earnings: Lucid (NASDAQ:LCID)

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how automobile manufacturing stocks fared in Q3, starting with Lucid (NASDAQ:LCID).

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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 5.1%.

Luckily, automobile manufacturing stocks have performed well with share prices up 11.5% on average 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 $336.6 million, up 68.3% year on year. This print fell short of analysts’ expectations by 3.2%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue and adjusted operating income estimates.

"We maintained strong operational momentum this quarter, delivering solid results in both production and customer deliveries," said Marc Winterhoff, Interim CEO at Lucid.

Lucid delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 3.4% since reporting and currently trades at $17.80.

Is now the time to buy Lucid? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: 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 $50.53 billion, up 9.4% year on year, outperforming analysts’ expectations by 9.1%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

Ford pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 6.9% since reporting. It currently trades at $13.16.

Is now the time to buy Ford? Access our full analysis of the earnings results here, it’s free for active Edge members.

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 $28.1 billion, up 11.6% year on year, exceeding analysts’ expectations by 5.7%. It was a satisfactory quarter as it also posted an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 3.2% since the results and currently trades at $452.93.

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 $48.59 billion, flat year on year. This print topped analysts’ expectations by 7.9%. It was an incredible quarter as it also recorded an impressive beat of analysts’ EBITDA estimates.

General Motors had the slowest revenue growth among its peers. The stock is up 19% since reporting and currently trades at $69.03.

Read our full, actionable report on General Motors here, it’s free for active Edge members.

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 $777.3 million, up 7.8% year on year. This number beat analysts’ expectations by 6.3%. Overall, it was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 14% since reporting and currently trades at $36.02.

Read our full, actionable report on Winnebago here, it’s free for active Edge members.

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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