Looking back on automobile manufacturing stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Rivian (NASDAQ: RIVN) 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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 5.1%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
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 $1.56 billion, up 78.3% year on year. This print exceeded analysts’ expectations by 4.9%. Overall, it was a strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue estimates.
Rivian scored the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 12.2% since reporting and currently trades at $14.07.
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 estimates and a solid beat of analysts’ EBITDA estimates.
Ford delivered the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.6% since reporting. It currently trades at $12.64.
Is now the time to buy Ford? Access our full analysis of the earnings results here, it’s free for active Edge members.
Slowest Q3: 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, falling short of analysts’ expectations by 3.2%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.
Lucid delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 32.8% since the results and currently trades at $11.60.
Read our full analysis of Lucid’s results here.
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. This print surpassed analysts’ expectations by 5.7%. More broadly, it was a satisfactory quarter as it also produced an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.
The stock is down 12.1% since reporting and currently trades at $386.22.
Read our full, actionable report on Tesla 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 result topped analysts’ expectations by 6.3%. Overall, it was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is up 6.7% since reporting and currently trades at $33.73.
Read our full, actionable report on Winnebago here, it’s free for active Edge members.
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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