GM Tops Estimates But the UAW Strike Overshadows Its Full Year Guidance
Portfolio Pulse from Upwallstreet
General Motors (GM) exceeded Wall Street's Q3 estimates with a revenue of $44.13 billion, a 5.4% growth, but lowered its full-year outlook due to the UAW strike and EV market costs. The strike cost GM about $200 million per week in lost production. GM also delayed production of electric trucks at a second plant in Michigan to save about $1.5 billion in capital. The UAW strike has now expanded to include over 40,000 members from GM, Ford Motor (F), and Stellantis (STLA), representing about 27% of Detroit Three automakers’ workforce.
October 24, 2023 | 2:48 pm
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Ford is also affected by the UAW strike, with over 40,000 members from GM, Ford, and Stellantis on strike.
The UAW strike is affecting Ford's operations, which could lead to a decrease in the company's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
GM's Q3 earnings beat estimates but the company lowered its full-year outlook due to the UAW strike and EV market costs.
The UAW strike and EV market costs are negatively impacting GM's earnings and outlook, which could lead to a decrease in the company's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Stellantis is also affected by the UAW strike, with over 40,000 members from GM, Ford, and Stellantis on strike.
The UAW strike is affecting Stellantis' operations, which could lead to a decrease in the company's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Despite missing forecasts and a slowdown in earnings with thinning margins, Tesla is still more profitable than traditional automakers as it excels in the EV know-how.
Despite missing forecasts, Tesla's profitability and expertise in the EV market could lead to an increase in the company's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50