When it comes to the automotive industry, major U.S. automakers have been experiencing a difficult week. Ford Motor, in particular, has been in the spotlight due to disappointing results and investor skepticism surrounding its future performance. Ford’s stock closed Thursday down by 18.4%, marking its worst daily decline since 2008.
General Motors and Stellantis also saw declines in their stock prices after reporting their results. Tesla, on the other hand, experienced a 2% increase in its stock price after a significant decline just the day before.
The traditional “Detroit” automakers – Ford, GM, and Stellantis – faced challenges due to industrywide uncertainty and individual issues. Despite this, Stellantis reaffirmed its 2024 guidance, emphasizing a double-digit adjusted operating income margin and positive industrial free cash flow.
Ford, despite falling short of adjusted earnings per share expectations, also reaffirmed its 2024 guidance, which includes adjusted earnings before interest and taxes of between $10 billion and $12 billion. While some Wall Street analysts expressed frustration over Ford’s warranty costs, many remained optimistic about the company’s underlying business operations.
Looking at the future, Ford and Stellantis are expected to work hard to deliver the performance needed to overcome these challenges and meet their guidance. With ongoing changes and challenges in the automotive industry, investors are keeping a close eye on how these companies navigate the road ahead.
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