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Key Takeaways

  • Ford, GM, and Volkswagen are updating production to release new electric vehicles (EVs) to compete with Tesla.
  • New EV upstarts Rivian and Nio are also attempting to supplant Tesla as the top EV maker.
  • Fears of a recession and rising costs have sunk most automakers stock prices in 2022.

Automotive stocks used to be a boring investment. Investors would choose from a short list of large manufacturers and hope they delivered vehicles consumers actually wanted. This all changed when Tesla joined the fray. The legacy automakers are shifting production to get a piece of the hybrid and electric vehicle market. Here is a rundown of the need-to-know auto manufacturing updates for investors.


Ford is taking bold strides into the EV market with its Lightning pickup truck and Mustang EV releases. The return of the Bronco and Bronco Sport nameplates to the market also stimulated strong consumer demand. The F-150 Lightning recently went viral when Hoovie’s Garage, a popular car channel on YouTube, towed a Ford Model T with the Lightning and ran through the pickup’s battery reserves faster than expected. It turned out that the issues resulted from an improperly balanced trailer and a tall object that increased wind resistance.

Ford reported a 5.3% increase in market share for the second quarter of the 2022 fiscal year and a significant increase in revenue year over year. It reported revenues of $40.2 billion for the end of the second quarter of 2022 compared to $26.8 billion from the same quarter in 2021. Ford shares were up 140% in 2021 but are down close to 44% in 2022. The decline is due to fears of a slowing economy and some investors realizing gains after last year’s huge run.


Rivian has been plagued with production issues linked to pandemic supply chain disruptions. They make an all-electric, full-sized truck and SUV that were put into production, though manufacturing has been slowed because of a lack of chips needed to operate them. The automaker, a conglomerate owned by Amazon, Ford, and investor Abdul Latif Jameel, recently issued a voluntary recall of 13,000 vehicles over a loose bolt in the front suspension. This number represents almost all of Rivian’s current production of the RT1.

However, Rivian’s produced 7,363 vehicles in the third quarter of the 2022 fiscal year, an increase from 2,553 vehicles in the first quarter. Meanwhile, the company posted an annual adjusted loss of $5.8 billion, up from its previous estimate of $4.75 billion.

Year to date, Rivian’s stock price is down 67% due to various factors. The biggest is that increased supply costs are forcing Rivian to revise its production estimates for 2022 down to just 25,000 vehicles. Investors should not expect the same increases in vehicle production as they saw between the first and second quarters.


Tesla’s efforts to upgrade its factory in Shanghai paid off with the delivery of 83,135 EVs in September 2022. It’s an 8% increase over August’s numbers and sets a record for the factory since it first opened for production in December 2019. Tesla delivered a total of 343,830 vehicles around the world in the third quarter of 2022, another record for the EV manufacturer; but the number was almost 15,000 short of expectations from analysts.

The fact that Tesla’s production fell short was not welcome news to investors. The stock declined to a low of $223.07 the first week of October and is down 44% for the year. Musk’s unpredictable behavior with regard to confirming the purchase of Twitter and his opinions about the Russia-Ukraine conflict didn’t help the stock value either.


Tesla reported a total gross profit of $4.23 billion at the end of the second quarter of the 2022 fiscal year on revenues of $16.93 billion. It had automotive revenues of $14.60 billion, down from $16.86 billion in the first quarter, but delivered a year-over-year increase of 43%.

General Motors

General Motors has been focusing on rebuilding itself since it took the bailout from the federal government in 2008. Its slow and steady strategy of modernizing its divisions and vehicles has paid off in the form of improved sales and the production of EVs that are lauded by the buying public. GM retired the Chevrolet Volt but retained production of the Bolt until recently. Moves were made to transition other vehicles to a hybrid or all-electric drivetrain. Meanwhile, the manufacturer was number one in sales for full-size SUVs, full-size pickups, and large luxury SUVs for the third quarter of 2022.

GM’s second quarter results for 2022 showed net revenue of $1.69 billion and an earning before interest and taxes adjusted income of $2.13 billion. The numbers reflect the supply chain disruptions that hit the automaker hard due to the pandemic.

GM stock is down 45% year to date due to expectations of a slowing economy and supply price increases.


Volkswagen has worked hard to rebuild its reputation after its fuel efficiency scandal in 2017, but losing its title of most valuable car maker in Europe to Porsche shows it still has a way to go. Software problems have hampered its efforts to move into EV production. Software plays a prominent role in the operation of EVs, and mistakes in its creation are costly. VW is in talks with a software company in China to develop EV software. The deal is supposedly worth $1 billion. Also potentially boosting Volkswagen’s EV fortunes is the return of the classic VW Microbus. It’s returning as the ID. Buzz — a fully electric VW van and one of the first of its kind on the market.

Volkswagen reported a total revenue of $62.74 billion at the end of the first quarter of the 2022 fiscal year and a total of $134.9 billion in revenues for the first six months. This represents an increase of 2% in revenue from the same period in 2021. Year to date, the stock price is down 38%.


Nio is a Chinese EV manufacturer comparable to Tesla in terms of its goals to create innovative consumer EVs and to make the internal combustion engine obsolete. However, its stock value is suffering due to the U.S. interest rate hikes and a steady employment rate. Investors are worried about the outlook of EV production due to its sensitivity to supply chain issues and a lack of infrastructure for the broader adoption of electric vehicles. Meanwhile, Nio continues its expansion plans and is planning to make its cars available for lease in four European markets by the end of 2022.

The manufacturer reported a 29% increase in deliveries for the third quarter of the 2022 fiscal year compared to the same period a year ago. Year to date, Nio’s stock price is down 59%.

Bottom Line

The auto industry is in a state of monumental change. Gone are the days of refreshing old models with updated features. Now car manufacturers are offering new vehicles that have hybrid and electric drivetrains to help lower emissions, save consumers money, and of course, help the environment.

The biggest issue for investors is which auto manufacturer to get behind. While most companies will succeed, there will always be winners and losers.

A better alternative to investing in individual auto manufacturers is to invest in a Q.ai Investment Kits, which help to spread risk across multiple investments, so investors aren’t left holding the proverbial bag on one or two underperforming stock. Our artificial intelligence scours the markets for the best investments for all manner of risk tolerances and economic situations. Then, it bundles them up in handy Investment Kits that make investing simple and – dare we say it – fun.

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