Q3 Rundown: Nikola (NASDAQ:NKLA) Vs Other Automobile Manufacturing Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Nikola (NASDAQ:NKLA) and the best and worst performers in the automobile manufacturing industry.

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 manufacturing stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 4.2%.

Thankfully, share prices of the companies have been resilient as they are up 8% on average since the latest earnings results.

Weakest Q3: 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 $25.18 million, up 1,554% year on year. This print fell short of analysts’ expectations by 31.3%. Overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates.

"Year-to-date, we had record sales of hydrogen fuel cell electric trucks, a 78% increase in FCEV fleet adoption, and a nearly 350% increase in hydrogen fuel dispensed at our commercial stations," said Steve Girsky, President and CEO of Nikola.Nikola Total Revenue

Nikola achieved the fastest revenue growth but had the weakest performance against analyst estimates of the whole group. Still, the market seems discontent with the results. The stock is down 7.3% since reporting and currently trades at $1.17.

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

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, outperforming analysts’ expectations by 9.9%. The business had a very strong quarter with a solid beat of analysts’ adjusted operating income estimates and full-year EPS guidance exceeding analysts’ expectations.

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General Motors Total Revenue

General Motors scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 7.3% since reporting. It currently trades at $52.51.

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

Rivian (NASDAQ:RIVN)

The manufacturer of Amazon’s delivery trucks, Rivian (NASDAQ:RIVN) designs, manufactures, and sells electric vehicles and commercial delivery vans.

Rivian reported revenues of $874 million, down 34.6% year on year, falling short of analysts’ expectations by 10.5%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

Rivian delivered the slowest revenue growth in the group. Interestingly, the stock is up 26.4% since the results and currently trades at $12.68.

Read our full analysis of Rivian’s results here.

Ford (NYSE:F)

Established to make automobiles accessible to a broader segment of the population, Ford (NYSE:F) designs, manufactures, and sells a variety of automobiles, trucks, and electric vehicles.

Ford reported revenues of $46.2 billion, up 5.5% year on year. This result topped analysts’ expectations by 9.1%. Aside from that, it was a mixed quarter as it also produced a decent beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

The stock is down 11.8% since reporting and currently trades at $10.03.

Read our full, actionable report on Ford 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. This print missed analysts’ expectations by 1%. Zooming out, it was a mixed quarter as it also logged a solid beat of analysts’ operating income estimates but a miss of analysts’ revenue estimates.

The stock is up 93.5% since reporting and currently trades at $413.06.

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

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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