Automakers hit ‘significant storm,’ as buyers reject lofty prices at time of huge capital outlays

AP Auto Writer

DETROIT (AP) — Investors are punishing automakers’ stocks this week after second-quarter earnings reports exposed industrywide issues of slowing sales and high prices. That has come just as the companies are having to spend huge sums to make new electric and gas vehicles. Many automakers have growing stockpiles on dealer lots, requiring increased discounts to sell them to buyers with stressed-out household budgets. Ford reported a drop in second-quarter earnings due electric vehicle losses and persistently high warranty costs. It led the declines with shares falling 20% this week. But others such as General Motors, Tesla, Stellantis and Nissan, all saw shares drop at least 6%. Stellantis CEO Carlos Tavares said the industry is in a significant storm and facing turmoil.