GM, Ford face investor scrutiny over pricing power, EV losses

Investors are keen to see if Detroit’s pricing power for gasoline cars remains strong and if losses from their electric vehicle (EV) ventures are decreasing.

GM CEO Mary Barra has expressed confidence in the profit margins of traditional gas-powered vehicles, and the company’s shares have risen by over a third this year.

In contrast, Ford has faced quality issues and significant EV losses, leading to an 8 per cent drop in its shares.

Analysts from Deutsche Bank have warned that Ford might miss expectations due to high inventory levels. The average listing price for new vehicles rose slightly in October, but overall prices have plateaued, indicating cautious consumer spending.

Both automakers have shifted focus to higher-margin gasoline models as EV sales growth slows. Ford recently cancelled its electric three-row SUV, while GM has slowed its EV production goals. Investors will be watching for insights on how economic conditions and upcoming elections might impact future EV policies.