Stellantis Just Served a Major Warning to Ford and GM Investors

Say what you want about Stellantis (NYSE: STLA) and whether or not it should be included as a "Detroit automaker," but it still has a core Detroit SUV and truck business. And when one Detroit automaker issues a warning, others are certainly listening. Stellantis just served a major pessimistic warning that Ford Motor Company (NYSE: F) and General Motors (NYSE: GM) investors should heed loud and clear as third-quarter earnings approach.Stellantis stock slid early this week after the maker of Jeep and Ram brands cut its 2024 financial guidance. The driving force behind its guidance cut was deteriorating industry dynamics, increasing inventory, and increasingly difficult challenges in China.These aren't slight financial guidance cuts either, these were more of a slap-in-the-face wake-up call for auto investors. Stellantis toned down its forecast for full-year adjusted operating income to a range of 5.5% to 7%, which is down drastically from the previous guidance of "double digits." It gets worse. Stellantis now projects its free cash flow to be in a range of negative $5.6 billion to negative $11.2 billion, a far cry from the original guidance of "positive" free cash flow. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool