Tesla, Ford, GM And Other Automakers Trade Lower In Premarket After Elon Musk And Jim Farley's Team Fail To Soothe Investors
Portfolio Pulse from Benzinga Neuro
Shares of major automakers, including Tesla, Ford, and GM, fell in premarket trading following disappointing second-quarter earnings and investor concerns. Tesla's revenue increased modestly, but earnings per share missed expectations. Ford and GM also faced declines due to various operational and market challenges.
July 25, 2024 | 10:43 am
News sentiment analysis
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NEGATIVE IMPACT
Ford's shares fell by 13.46% despite Q2 revenue surpassing estimates. The decline was due to earnings per share falling short and increased warranty reserves for vehicle issues. Ford expects recent initiatives to improve future quality and reduce costs.
Ford's earnings per share fell short of expectations due to increased warranty reserves, leading to a significant drop in share price despite revenue surpassing estimates.
CONFIDENCE 100
IMPORTANCE 85
RELEVANCE 100
NEGATIVE IMPACT
GM's shares fell by 1.91% despite robust Q2 results. Concerns about potential industry pitfalls, including slowing sales in China, contributed to the decline.
GM's shares declined due to concerns about potential industry pitfalls, including slowing sales in China, despite robust Q2 results.
CONFIDENCE 100
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Rivian's shares fell by 3.13% following the broader trend of declining automaker stocks after Q2 earnings announcements.
Rivian's shares followed the broader trend of declining automaker stocks after Q2 earnings announcements, despite no specific issues mentioned for Rivian.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Stellantis' shares fell by 6.84% after reporting a 48% drop in first-half net profit, citing a challenging industry context and operational issues.
Stellantis reported a significant drop in first-half net profit, leading to a substantial decline in share price due to challenging industry conditions and operational issues.
CONFIDENCE 100
IMPORTANCE 75
RELEVANCE 100
NEGATIVE IMPACT
Tesla's shares fell by 2.03% after Q2 earnings per share missed expectations. Concerns about lower auto gross margin, free cash flow, and CEO Elon Musk's comments on lower volume growth in 2024 impacted investor sentiment.
Tesla's earnings per share did not meet expectations, and concerns about lower auto gross margin and free cash flow, along with Musk's comments on lower volume growth, negatively impacted investor sentiment.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100