what happened
general motors (GM 8.05%) stepped on the accelerator, and ford motor company (F 4.50%) will accompany you. Ford’s shares rose as much as 5.3% on Tuesday as crosstown rival GM handily beat expectations.
So what
It’s been a busy week for Ford. On Monday, the auto giant announced a price cut for his Mach E, the popular electric car Mustang. Tesla.
On Tuesday, news from General Motors boosted Ford shares. GM earned $2.12 a share in the fourth quarter on revenue of $43.1 billion and easily beat analyst expectations of $1.69 a share on sales of $40.6 billion. .
Some of GM’s positive points can easily be applied to other automakers. GM says supply chain problems that have plagued the sector through most of 2022 are easing, and pricing remains solid despite concerns over growing economic pressure on U.S. consumers. said.
GM is watching the economic environment closely and has announced plans to cut costs by about $2 billion over the next two years. But the overall tone of the announcement and subsequent earnings call is upbeat, giving strength to rivals, including Ford.
Ford is expected to report its fourth quarter results on Thursday.
So
There was a notable difference between what GM and Ford recently said investors should watch out for. GM CEO Mary Barra told analysts the company has no plans to follow Ford in lowering the price of electric vehicles, saying on a post-earnings conference call, I think we’re doing the pricing,” he said.
Macroeconomics remain a concern, and Ford could feel a pinch heading into 2023 as price cuts take hold. But GM’s earnings look far better than investors feared. It proves that.
Ford now faces heightened expectations for its own earnings report.
Lou Whiteman has no positions in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool’s U.S. headquarters has a disclosure policy.
