Why Aston Martin stock is crashing today

Core Viewpoint - Aston Martin's shares experienced a significant decline after the company revised its outlook downward for the second time this year, reflecting ongoing challenges in the luxury vehicle market [1][4]. Group 1: Stock Performance - Aston Martin's stock fell sharply, dropping as much as 11% at one point, and was trading at £76.05, down over 6% for the day [1]. - Year-to-date, the stock has decreased approximately 30% [1]. Group 2: Volume and Deliveries - The company no longer expects to meet its full-year volume guidance, projecting a mid-to-high single-digit decline in total 2025 wholesale volumes compared to last year's 6,030 units [2]. - Third-quarter deliveries fell 13% year-over-year to 1,430 vehicles, missing prior expectations of flat performance [2]. Group 3: Financial Outlook - Aston Martin has abandoned plans for positive free cash flow in the second half of the year and is reviewing future costs and capital expenditure [3]. - The company now anticipates adjusted EBIT to fall below the low end of market forecasts, with analysts estimating losses of around £110 million ($148 million) [3]. Group 4: Market Challenges - The downgrade in outlook is attributed to a challenging macroeconomic environment, uncertainties related to new U.S. tariffs, changes in China's ultra-luxury car tax, and ongoing supply chain risks [4]. - Despite expectations for a stronger fourth quarter supported by new model launches and initial deliveries of the Valhalla supercar, investors reacted negatively to the company's near-term outlook [4].