Aston Martin Shares Plunge After Profit Warning Cites Tariff Concerns
LONDON – Aston Martin lagonda Global Holdings PLC shares tumbled over 7% Monday morning after the luxury automaker issued a fresh profit warning, citing ongoing macroeconomic headwinds adn uncertainty surrounding international trade tariffs. The company now anticipates a wider-than-previously-forecast loss for the year and has initiated a review of its cost structure and future capital expenditure.
the revised outlook reflects growing anxieties about the impact of potential U.S. tariffs, evolving tax policies in China impacting the ultra-luxury vehicle market, and the risk of further disruptions to global supply chains.This news intensifies scrutiny on Aston Martin’s turnaround efforts under Executive Chairman lawrence Stroll, and raises questions about the company’s ability to achieve profitability amid a challenging global economic landscape.
Aston Martin had previously guided for positive free cash flow in the second half of 2023, but now states it does not expect to reach that milestone.Analysts had projected an earnings before interest and taxes (EBIT) loss of £110 million ($147.8 million) for the company.
“The global macroeconomic environment facing the industry remains challenging,” Aston Martin stated in a release. The company highlighted specific concerns regarding the economic consequences of U.S. tariffs and quota mechanisms, changes to China’s ultra-luxury car taxes, and the potential for increased supply chain pressures.
As of 9:15 a.m.London time, Aston Martin shares were trading approximately 7.6% lower.Year-to-date, the stock has declined by roughly 24%.
