GM, Ford Brace For Scrutiny Over Pricing Power, EV Losses

General Motors (GM) and Ford Motor Company are likely to face challenges convincing investors that their pricing power for gasoline vehicles remains robust and that losses from their electric vehicle (EV) ventures are shrinking, Reuters reporters Nathan Gomes and Nora Eckert wrote.

GM’s stock has surged by more than a third this year, buoyed by strong sales of gas-powered models and two upward revisions of its annual profit forecast. I Photo: General Motors Facebook

GM is scheduled to release its July to September results on October 22, while Ford will follow on October 28. GM CEO Mary Barra recently stated that profit margins for traditional gas-powered vehicles had not yet peaked and that EV sales were ramping up.

GM’s stock has surged by more than a third this year, buoyed by strong sales of gas-powered models and two upward revisions of its annual profit forecast.

In contrast, Ford has struggled with quality control issues and substantial losses from its EV division, resulting in an 8% decline in its stock this year.

Deutsche Bank analysts warned that Ford could miss quarterly expectations, particularly due to excess inventory. Wall Street has been questioning whether consumers will continue to pay historically high prices for trucks and SUVs amid rising interest rates and broader economic concerns.