Rush Enterprises, Inc. (NASDAQ: RUSHA), a leading commercial vehicle dealership group, saw its stock price plummet by 5.08% during Thursday's intraday trading session. This drop came on the heels of the company's fourth-quarter and full-year 2024 earnings release, which revealed the impact of ongoing supply chain disruptions and a challenging freight market.

For the full year 2024, Rush Enterprises reported annual revenue of $7.8 billion and a net income of $304.2 million. While these figures reflect the company's resilience, there were several concerning trends highlighted during the earnings call:

• New Class A truck sales declined by 11.4% year-over-year, reflecting the impact of the freight recession and high inventory levels.
• Aftermarket revenue decreased by 1.8% from 2023, with the absorption ratio dropping from 135.3% to 132.2%.
• Used truck sales remained flat, indicating a challenging environment for used vehicle demand and pricing.

The company's management acknowledged the headwinds posed by the freight recession, high interest rates, and economic uncertainty. However, they expressed cautious optimism for a recovery in the second half of 2025, driven by emerging signs of activity in the market.

Another potential risk factor cited during the earnings call was the possibility of tariffs on vehicles and component parts manufactured in Canada, Mexico, or China. If implemented, these tariffs could significantly increase the cost of new commercial vehicles, potentially further dampening demand in 2025.

Despite these challenges, Rush Enterprises continued to focus on strategic initiatives, such as expanding its national account sales force to gain market share in the aftermarket segment and maintaining a conservative approach to managing expenses and inventory levels.