Spotting Winners: Rivian (NASDAQ:RIVN) And Automobile Manufacturing Stocks In Q3

December 03, 2024 at 03:08 AM EST

RIVN Cover Image

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 Rivian (NASDAQ: RIVN).

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 7 automobile manufacturing stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 3.4%.

In light of this news, share prices of the companies have held steady as they are up 4.5% on average 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 $874 million, down 34.6% year on year. This print fell short of analysts’ expectations by 10.5%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.

Rivian delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 17.9% since reporting and currently trades at $11.83.

Is now the time to buy Rivian? Access our full analysis of the earnings results here, it’s free.

Best Q3: 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 $48.76 billion, up 10.5% year on year, outperforming analysts’ expectations by 9.9%. The business had a very strong quarter with a solid beat of analysts’ adjusted operating income estimates and full-year EPS guidance exceeding analysts’ expectations.

General Motors achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 12.4% since reporting. It currently trades at $55.01.

Is now the time to buy General Motors? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: 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 $720.9 million, down 6.5% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.

The stock is flat since the results and currently trades at $58.01.

Read our full analysis of Winnebago’s results here.

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 $200 million, up 45.2% year on year. This result beat analysts’ expectations by 1%. Aside from that, it was a mixed quarter as it also logged an impressive beat of analysts’ sales volume estimates but a significant miss of analysts’ adjusted operating income estimates.

The stock is down 4.5% since reporting and currently trades at $2.12.

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

Nikola (NASDAQ: NKLA)

Named after Nikola Tesla, Nikola (NASDAQ: NKLA) manufactures zero-emission vehicles, focusing on battery-electric and hydrogen fuel cell electric trucks.

Nikola reported revenues of $25.18 million, up 1,554% year on year. This print came in 31.3% below analysts' expectations. It was a softer quarter as it also logged a significant miss of analysts’ adjusted operating income estimates.

Nikola achieved the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is down 56.4% since reporting and currently trades at $1.84.

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

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), has fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty heading into 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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