General Motors (GM) celebrated a major stock rally, up 9% this past week, as its third-quarter earnings exceeded Wall Street’s expectations, primarily driven by its gas-powered truck and SUV lineup.
Unlike many competitors, GM has strategically avoided overproducing these vehicles, enabling it to keep prices high without deep discounting, even as the auto market normalizes post-pandemic.
GM’s gas-powered vehicles remain a reliable profit source. While its electric vehicle (EV) segment is growing, it still faces significant hurdles, with losses anticipated through 2025.
In contrast, Ford’s third-quarter performance reflected challenges. With a net income drop of 25% to $900 million, Ford continues to struggle with losses in its EV business and higher warranty costs. The company’s EV segment reported losses of $1.2 billion.
Ford’s woes contrast with GM’s success, as Ford’s shares dropped 4% post-earnings announcement, highlighting the differing paths of the two automakers in today’s market.