As the Q2 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 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 5 automobile manufacturers stocks we track reported a decent Q2. As a group, revenues beat analysts’ consensus estimates by 6.1%.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility, and automobile manufacturers stocks have had a rough stretch. On average, share prices are down 6.8% since the latest earnings results.
Rivian (NASDAQ:RIVN)
The manufacturer of Amazon’s delivery trucks, Rivian (NASDAQ:RIVN) designs, manufactures, and sells electric adventure vehicles and commercial delivery vans.
Rivian reported revenues of $1.16 billion, up 3.3% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ volume estimates.
Unsurprisingly, the stock is down 4.6% since reporting and currently trades at $14.12.
We think Rivian is a good business, but is it a buy today? Read our full report here, it’s free.
Best Q2: 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 $47.97 billion, up 7.2% year on year, outperforming analysts’ expectations by 5.9%. It was a stunning quarter for the company with an impressive beat of analysts’ revenue and EPS estimates.