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The week starting 22nd July was one of the worst Wall Street has seen in recent years, marked by numerous companies posting lacklustre quarterly earnings results. Notable among these were the automakers Stellantis, Nissan, GM, Ford, and Tesla, all of whom reported their Q2 earnings. Tech giant Alphabet posted poor earnings bringing down the Nasdaq, but significant share price slumps were observed across major players in the automotive industry.
Stellantis and Nissan
Stellantis and Nissan, two giants of the automotive industry, both posted a fall in profits for Q2 2024. Nissan’s profits plummeted 73% compared to the same period last year, despite a 3% increase in sales. The drop in profits was attributed to heightened sales incentives and marketing costs required to tackle fierce competition, especially in the US. CEO Makoto Uchida commented, “We were not able to expand our sales as much as we had expected due to an increase in inventory in the US, declining demand, and increased competition.”
Similarly, Stellantis saw a 48% drop in profits in the first half of 2024 compared to the same period last year, with sales down 16%. This decline followed a strong push into EVs, which has yet to pay off, as consumer sentiment towards EVs in the US and Europe has begun to wane, with growth in sales slowing.
On the day their earnings were released, both Stellantis and Nissan shares dropped 10% on their respective stock markets.
Tesla
Tesla missed its profit estimates for Q2 2024, with net income falling by …
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