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The auto companies following Tesla’s tracksINTL

The auto companies following Tesla’s tracks

Volkswagen (VOW3) and Ford (F) are leading the charge in automotives as both companies saw their earnings released a few days ago.

The German carmaker, Volkswagen, saw Q3 revenues jump by 20% to $66.5b, while net income dropped by 12% to $3.3b. Ford was a mixed bag too as it recorded a 5% revenue drop, coming in at $35.7b, and a 25% net income drop (which reached $1.8b). In the case of Ford, though, although lower on a year-over-year basis, the figures are said to be an improvement from the previous quarter.

In the case of Volkswagen, despite its delivery increases of 7%, the German company is still suffering from supply-chain issues like the semiconductor chips shortage, which drove its tepid earnings report. The chip shortage affects the likes of Ford as well, however, the US company’s release of new SUV and EV models generated robust demand and drove slightly more positive earnings figures.

why it matters

Ford’s stock was up by 8.6% yesterday, while Volkswagen’s share price took a 4.5% tumble. As supply chain issues plague automakers, the determinant of success becomes how effectively they can price new models and conserve cash flows.