Core Insights - The automotive industry, particularly the electric vehicle (EV) sector, experienced a surge in sales in August as consumers rushed to purchase EVs before the $7,500 federal tax credit expires at the end of September [1][2][10] Group 1: Ford Motor Company - Ford reported a 3.9% increase in total vehicle sales in August, totaling 190,206 vehicles, marking the sixth consecutive month of sales gains [4] - Year-to-date, Ford's total vehicle sales reached 1.5 million, a 6.6% increase compared to the previous year [4] - Ford's EV sales spiked 19% in August to 10,671 vehicles, although year-to-date EV sales are down 5.7% to 57,888 vehicles [4][5] Group 2: General Motors - General Motors achieved its best month ever for EV sales in August, selling over 21,000 EVs across its Chevrolet, Cadillac, and GMC brands [9][8] - The Chevy Equinox EV, Cadillac Lyriq, and GMC Sierra EV significantly contributed to GM's strong performance in the EV market [9] - GM remains the No. 2 seller of EVs in the U.S., benefiting from strong manufacturer loyalty and customer commitment to EV technology [8][9] Group 3: Market Outlook - September is anticipated to be another strong month for EV sales, but a potential decline in demand is expected after the tax credit expires [10] - Automakers may need to offer substantial discounts to move inventory before the tax credit ends, as they aim to avoid excess stock [11] - The profitability of EV segments is crucial for traditional automakers, with Ford's Model-e division reportedly losing around $5 billion in 2024 [12]

Well, time is running out to take advantage of two tax breaks that President Trump's one big beautiful bill did away with. Joining me now is senior autos reporter Pros Romanian and senior reporter Emma Aerman. So, Proz, let's start with you here.The electric vehicle tax credit coming to an end on September 30th. What is this tax credit and how can American consumers take advantage of this before that deadline. you know, so Biden's uh uh the uh the act that insued this tax credit 7,500 bucks per EV uh was ve ...

Core Insights - The upcoming Q2 2025 earnings reports for Ford and General Motors are highly anticipated by investors to assess which stock is better positioned [1] - General Motors is set to report earnings on the upcoming Tuesday, while Ford will follow on July 30 [1] Earnings Estimates - The Zacks Consensus Estimate for GM's Q2 earnings is $2.44 per share with revenues of $45.34 billion, having surpassed EPS estimates in the last four quarters with an average surprise of 10.16% [2] - Ford's consensus estimates are $0.30 for EPS and $41.5 billion for sales, with a less favorable earnings surprise history, beating estimates twice and missing once in the last four quarters [3] Earnings Surprise Potential - General Motors has a Zacks Rank of 3 and an Earnings ESP of -4.05%, while Ford has a Zacks Rank of 2 and an Earnings ESP of -36.59% [4] Vehicle Deliveries - Ford sold 612,095 vehicles in Q2 2025, a 14.2% increase year-over-year, driven by strong demand for trucks and hybrids [5] - General Motors sold 746,588 units, up 7.3% year-over-year, with significant growth across all brands, particularly Buick, which saw a 19.3% increase in Q2 [6] Electrification Efforts - General Motors has accelerated its electric vehicle sales, with EV sales up 111% to 46,280 units in Q2, driven by a diverse lineup [7][8] - Ford's EV sales, however, dropped 31% in Q2, but the company is focusing on hybrid strategies and operational scaling for long-term growth [9] Tariff Impact - Ford anticipates a $1.5 billion impact from tariffs, while General Motors expects a profit impact of $4-$5 billion due to tariffs on imports [10] Dividend Comparison - Ford offers a high dividend yield of over 5%, significantly higher than GM's 1.13% and the industry average of 0.3% [11] - Ford aims to distribute 40-50% of free cash flow going forward, indicating a commitment to shareholder returns [12] Earnings Outlook - The Zacks Consensus Estimate indicates a year-over-year decline in EPS for GM and Ford of 12.3% and 40%, respectively, but Ford's 2026 EPS is projected to grow by 13.4% [13] - Recent estimate revisions suggest Ford is better positioned than GM, with Ford's 2025 EPS estimate remaining stable at $1.11 [14] Stock Performance & Valuation - Year-to-date, Ford's shares have risen 20%, while GM's stock price has remained flat [15] - GM's stock trades at 5.65X forward earnings, while Ford's is at 9.94X, both below the auto sector's average of 25.82X [18] Conclusion - Ford appears better positioned heading into Q2 earnings due to its hybrid momentum, shareholder-friendly policies, and solid stock performance, despite GM's strength in EV sales [19]