Aston Martin share price has plunged by 11% following a downward revision of its outlook, attributed to concerns over tariffs and lower sales projections.
Shares of Aston Martin dropped as much as 11% at the market open in London and were down 6.6% by 9:07 a.m., marking a significant decline of about one-third over the past year. The latest warning highlights the ongoing challenges faced by the manufacturer of James Bond’s iconic car, which continues to grapple with execution issues, volatile market conditions, and strained finances despite numerous rescue attempts, according to a Bloomberg report.
After previously adjusting its outlook in July due to U.S. tariffs, Aston Martin announced on Monday that it now anticipates sales to decline by mid- to high-single-digit percentages this year, primarily impacted by weaknesses in the North American and Asian markets. According to a statement reported by Bloomberg, total deliveries for the third quarter fell by 13%, amounting to 1,641 vehicles.
Adding to the challenges, the luxury manufacturer no longer expects to achieve positive cash flow in the second half of the year and has decided to slow the rollout of the Valhalla, its first plug-in hybrid supercar. The company indicated that it needs to finalize engineering for the vehicle and secure necessary regulatory approvals, underscoring ongoing issues that are hindering a smooth vehicle rollout.
According to a Bloomberg report, Aston Martin has faced significant challenges for many years in managing the delicate balance as a small, cash-burning luxury automaker, as noted by Bernstein analysts led by Harry Martin. While the company seemed to be making strides toward achieving positive free cash flow and improving its execution on new model launches, the analysts warned that failing to deliver on these fronts could be the breaking point for many investors.
Aston Martin anticipates delivering around 150 Valhalla models in the fourth quarter, which falls short of Bernstein’s estimate of up to 250 vehicles. Additionally, the potential for delays due to a U.S. government shutdown could further complicate matters, as the company still requires certain approvals to move forward.
Global markets
According to reports, European shares experienced a decline on Monday, with French equities suffering the most significant losses following the unexpected resignation of Prime Minister Sebastien Lecornu. The pan-European STOXX 600 index fell by 0.2% to 569.4 points by 09:46 GMT, although it had briefly reached an intraday record high earlier in the day after a gain of more than 2.8% the previous week. French stocks dropped by 1.6%, on track for their largest one-day decline since August, in the wake of Lecornu’s resignation just hours after he appointed his new cabinet.
London’s benchmark FTSE 100 experienced a slight decline on Monday as investors paused for breath following last week’s rally that propelled the index to record highs. Adding to the downward pressure was a drop in shares of packaging company Mondi following its quarterly results.
The blue-chip index had briefly crossed the 9,500 mark for the first time on Monday, marking its fifth consecutive session of reaching record highs, but it ultimately reversed course. As of the latest updates, the FTSE 100 was down 0.1% at 9,482.86 points.
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