Q2 Earnings Highs And Lows: Lucid (NASDAQ:LCID) Vs The Rest Of The Automobile Manufacturers Stocks

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Lucid (NASDAQ:LCID) 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 satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 5.4%.

Inflation progressed towards the Fed's 2% goal recently, leading the Fed to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be debating whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.

Amidst this news, automobile manufacturers stocks have had a rough stretch. On average, share prices are down 15.8% since the latest earnings results.

Lucid (NASDAQ:LCID)

Lucid (NASDAQ:LCID) produces luxury electric vehicles that combine high-end design with electric technology.

Lucid reported revenues of $200.6 million, up 32.9% year on year. This print exceeded analysts’ expectations by 4.1%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ volume estimates but a miss of analysts’ operating margin estimates.

"I'm very encouraged by our sales and market share momentum we're experiencing, the benefits we're realizing from our cost optimization programs, and the excitement that's been building into the Lucid Gravity launch, setting a strong foundation for the rest of the year," said Peter Rawlinson, CEO and CTO of Lucid.

Unsurprisingly, the stock is down 8% since reporting and currently trades at $2.76.

Is now the time to buy Lucid? Access our full analysis of the earnings results 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%. The business had a stunning quarter with an impressive beat of analysts’ operating margin estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.3% since reporting. It currently trades at $48.92.

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

Weakest Q2: 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 $786 million, down 12.7% year on year, falling short of analysts’ expectations by 1.5%. It was a softer quarter as it posted a miss of analysts’ earnings estimates.

Winnebago delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 5.5% since the results and currently trades at $59.80.

Read our full analysis of Winnebago’s results here.

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 result was in line with analysts’ expectations. Overall, it was an exceptional quarter as it also logged an impressive beat of analysts’ volume estimates.

The stock is down 31.1% since reporting and currently trades at $10.19.

Read our full, actionable report on Rivian 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 $31.32 million, up 104% year on year. This number topped analysts’ expectations by 19.6%. It was a very strong quarter as it also put up a decent beat of analysts’ operating margin and volume estimates.

Nikola delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 46.5% since reporting and currently trades at $4.17.

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

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