Automobile Manufacturers Stocks Q3 Earnings: General Motors (NYSE:GM) Firing on All Cylinders

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Automobile Manufacturers Stocks Q3 Earnings: General Motors (NYSE:GM) Firing on All Cylinders

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the automobile manufacturers industry, 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 7 automobile manufacturers 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. On average, they are relatively unchanged since the latest earnings results.

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. This print exceeded analysts’ expectations by 9.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ Wholesale revenue estimates.

General Motors Total Revenue
General Motors Total Revenue

General Motors achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 13% since reporting and currently trades at $55.29.

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

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 $25.18 billion, up 7.8% year on year, falling short of analysts’ expectations by 1%. Overall, it was an impressive quarter. Tesla beat analysts’ gross margin expectations (19.8% vs 16.9%). That helped it beat on adjusted earnings per share, Adjusted EBITDA, and Free Cash Flow. Additionally, Tesla saw vehicle delivery growth of 6.4% quarter on quarter, the first time this year the company has seen quarter on quarter delivery growth.

Tesla Total Revenue
Tesla Total Revenue

The market seems happy with the results as the stock is up 60.9% since reporting. It currently trades at $343.60.

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