Tough Times for Tesla Amid Political BacklashTo find a more difficult time to be a Tesla ((TSLA) investor, one would have to go all the way back to 2008, before Tesla was even a public company. At that time, Tesla was starting production of its first generation “Roadster,” a very expensive, electric sports car built on top of a Lotus Elise chassis. Simultaneously, CEO Elon Musk was weathering through a brutal divorce, Tesla was running out of money, and, oh yeah, the most ruthless financial crisis in a cent ...

If approved, the technology giant will make the largest acquisition in its company's history by purchasing Wiz.In this podcast, Motley Fool analyst Jason Moser and host Ricky Mulvey discuss:Why Alphabet is spending $32 billion on a cloud security company.BYD's announcement that it can charge an electric vehicle battery in 5 minutes.Robinhood rolling out prediction markets on its platform.Then, Motley Fool host Alison Southwick and personal finance expert Robert Brokamp answer mailbag questions about keeping ...

Core Insights - Tesla owners are trading in their electric vehicles at record levels, with March marking the highest share of trade-ins for Tesla vehicles toward new or used cars from other brands [1] - Tesla's brand value has declined by 26%, approximately $15 billion, in 2024, marking a second consecutive annual decline [6] Market Performance - Tesla's stock price has decreased by 42% this year, with investors moving away from the stock following initial enthusiasm after Trump's victory [3] - Tesla's sales in the U.S. have declined by about 11% year-over-year, while competitors like Ford, Chevrolet, and Volkswagen have increased their EV sales and market share [4] Consumer Sentiment - Shifts in consumer sentiment towards Tesla may provide opportunities for legacy automakers and EV startups to attract defecting Tesla owners and first-time EV buyers [5] - Interest in shopping for new Tesla models has dropped to its lowest level since October 2022, following a peak in November [6]

U.S. legacy automaker General Motors (GM) is trading quite cheap at the moment from a valuation standpoint despite record financials and strong fundamentals. With a forward sales multiple of just 0.27 — below its five-year average and industry — GM presents an attractive value opportunity. It has a Value Score of A. Image Source: Zacks Investment ResearchGeneral Motors’ full-year 2024 revenues grew 9% to roughly $187 billion. It also set new records in adjusted EBIT ($14.9 billion). Annual earnings spiked 3 ...

Core Insights - Tesla's sales are experiencing a significant decline in the US and globally, with new registrations in the US dropping by 11% in January compared to the previous year, while competitors like Ford saw a 54% increase in their electric vehicle registrations [1][6] - Despite maintaining a dominant market share of 42% in the US EV market, Tesla's sales in Europe nearly halved in January, attributed to backlash against CEO Elon Musk for his controversial statements and actions [2][6] - The company's stock price has fallen over 50% since mid-December, raising concerns among investors regarding sales performance and Musk's focus on other ventures [5] US Market Performance - New Tesla registrations in the US fell by 11% in January year-over-year, contrasting with significant sales increases from competitors [1][6] - Tesla sold 35,000 more EVs than Ford in January, maintaining a leading position despite the sales slump [2] European Market Challenges - Tesla's sales in Europe nearly halved in January, with Musk facing criticism for his political comments and affiliations [2] - The backlash has contributed to a challenging sales environment for Tesla in the region [2] Global Sales Decline - In China, Tesla's sales dropped by 49% in February, facing stiff competition from local manufacturers like BYD [4] - The overall global sales decline is compounded by protests against Musk in the US, affecting Tesla's brand image [3][6] Investor Sentiment - Tesla's share price has decreased by more than 50% since mid-December, reflecting investor concerns over declining sales and Musk's distractions [5]

Company Overview - Ford is planning to invest up to €4.4 billion ($4.8 billion) into its German operations to reduce debt and enhance competitiveness, as its German arm has €5.8 billion ($6.3 billion) in debt [1][2] - The investment aims to stabilize Ford's operations in Europe, which have been struggling due to rising costs, weak demand, and competition from Chinese EV makers [1][2] Financial Performance - Ford has been incurring losses in Europe for several years, leading to cost-cutting measures, including plans to cut 4,000 jobs by 2027 [2] - The Model e division, focused on electric vehicles, reported a loss of $5.07 billion in 2024, an increase from a $4.7 billion loss in 2023, with expectations of another loss of $5-5.5 billion in the current year [7] - The Ford Blue segment, which includes traditional gas-powered vehicles, is projected to see EBIT drop from $5.3 billion in 2024 to $3.5-4 billion in 2025 due to lower sales and product mix changes [8] Segment Performance - Ford Pro, the commercial vehicle business, experienced a 15% revenue increase to $67 billion in 2024, with EBIT rising from $7.2 billion to $9 billion, driven by strong demand for Super Duty trucks and Transit vans [9] - The company is focusing on software and service subscriptions as potential growth drivers moving forward [9] Liquidity and Dividends - Ford ended 2024 with $47 billion in liquidity, including $28 billion in cash, supporting its Ford+ strategy and cost-cutting initiatives [11] - The company offers a dividend yield of over 6%, significantly higher than the S&P 500's average of 1.31%, and plans to return 40-50% of free cash flow to investors [11][13] Market Challenges - Ford faces challenges from proposed 25% tariffs on Mexican and Canadian imports, which could increase costs and disrupt operations [14] - The company anticipates a steep decline in first-quarter 2025 adjusted EBIT, projecting it to break even compared to $2.7 billion in the first quarter of 2024 [15] - Full-year adjusted EBIT is forecasted to be between $7-$8.5 billion, down from $10.2 billion in 2024, with rising warranty costs and incentives further pressuring margins [15] Future Outlook - The Zacks Consensus Estimate indicates a decline in 2025 sales and EPS by 4% and 22%, respectively, but anticipates growth in 2026 [17] - Despite restructuring efforts and strong performance in Ford Pro, near-term headwinds such as weak demand and rising competition are expected to impact profitability [19]

Core Insights - The company reported a fourth quarter revenue growth of 41.8%, reaching $31.1 million, driven by strong performance across all segments, particularly in Safety Tech and Aeronautics [1][8] - The adjusted net loss for the quarter narrowed to $3.7 million from $11.2 million in the prior year, marking a significant improvement in profitability [1][11] - The company achieved its first-ever quarter of positive adjusted EBITDA at $0.2 million, compared to a negative $6.0 million in the same quarter last year [1][11] - Full-year sales surpassed $100 million for the first time, with over 80% of sales coming from recurring customers [1][5] - The company introduced a 10-year committed and contracted backlog, indicating strong long-term demand across segments [1] - Initial guidance for 2025 anticipates healthy double-digit revenue growth and the first full year of positive adjusted EBITDA [1][19] Fourth Quarter 2024 Highlights - Revenue for the fourth quarter increased to $31.1 million, a 41.8% increase from $22.0 million in Q4 2023 [7][8] - Gross profit for the quarter was $11.4 million, up 81.4% from $6.3 million in the prior year, with a gross margin improvement to 36.5% from 28.5% [9][10] - Total operating expenses rose to $15.8 million, a 5.5% increase compared to $15.0 million in Q4 2023, primarily due to increased stock-based compensation [10] Full Year 2024 Highlights - Total revenue for the full year reached $103.5 million, a 32.8% increase from $78.0 million in 2023 [7] - The gross margin for the full year improved to 28.7%, up 310 basis points from 25.6% in the previous year [7] - The net loss for the year was $53.2 million, reduced from a loss of $79.3 million in 2023 [7] Segment Performance - **Safety-Tech Division**: Revenue increased by 73.0% to $13.0 million, with gross profit rising 212.7% to $3.0 million [12] - **Aeronautics Division**: Revenue grew by 26.7% to $13.4 million, with gross profit increasing 62.2% to $6.8 million [13] - **Architecture Division**: Revenue rose by 31.8% to $4.1 million, with gross profit up 54.8% to $1.5 million [16] - **Automotive Division**: Revenue decreased by 14.7% to $0.7 million, reflecting timing impacts of full-year orders [17] Financial Position - As of December 31, 2024, the company had total liquidity of $40.6 million, including $5.6 million in cash and a $35.0 million undrawn credit facility [18] - Total debt stood at $38.4 million, with a significant portion being short-term receivable financings [18] Future Outlook - The company expects full-year revenue for 2025 to be in the range of $130 million to $140 million, representing approximately 30% growth compared to 2024 [19] - The anticipated positive adjusted EBITDA for 2025 is expected to be supported by a strong recurring revenue base and operational leverage [19]

Core Viewpoint - Tesla's stock has experienced a significant decline, losing 45% from its peak of $479.86 on December 17, resulting in a loss of over $800 billion in market value, comparable to Poland's annual economic output [2][3] Group 1: Stock Performance - Tesla shares have fallen for seven consecutive weeks, marking the longest losing streak since its IPO 15 years ago, erasing gains made after Trump's election [1] - A quarter of the 40 brokerages covering Tesla now rate it a "strong sell," with Guggenheim Securities predicting a potential further decline of 30% [3] Group 2: Reasons for Decline - Political controversies surrounding Elon Musk, including his association with the Trump administration and recent public behavior, have negatively impacted public perception and customer loyalty [4][5][6] - Tesla's orders in January were down 45% year-on-year in both Europe and China, indicating a loss of market interest [5] Group 3: Market Valuation Concerns - Tesla shares were considered over-priced, trading at 112 times expected earnings at their peak, compared to 25 times for the S&P 500 and 8 times for Ford [11][12] - The stock's valuation was based on high growth expectations, which are now being reassessed as competition from companies like BYD increases [14] Group 4: Operational Challenges - Tesla's operating profits for Q4 2024 fell by 23% year-on-year, attributed to lower average selling prices across its vehicle lines, marking the first year-on-year decline in vehicle deliveries [17][18] - Concerns are growing that Tesla's core operations may be misfiring, compounded by investments in AI and robotics that some investors view as distractions from its primary business [15][16]

Core Viewpoint - The one-month exemption from tariffs for U.S. automakers provides temporary relief but does not address the underlying issues and uncertainties that the tariffs will create once the exemption period ends [1][12]. Group 1: Immediate Market Reaction - The announcement of the one-month exemption led to a recovery in auto stocks, with Ford, General Motors, and Stellantis seeing stock price increases of approximately 6%, 7%, and 9% respectively [2]. - Tesla also experienced a 2.6% gain following the news, recovering from a previous drop of 4.4% [2]. Group 2: Impact on Vehicle Prices - Tariffs are projected to increase vehicle prices by as much as $12,000 for cars not yet built or imported, with the average new car price nearing $49,000 expected to rise by at least $3,000 [4]. - Full-size pickup trucks, a significant segment for U.S. automakers, could see price hikes of up to $10,000 [4]. Group 3: Inventory and Consumer Options - Current new car inventory is up 12% compared to last year, providing consumers a limited opportunity to purchase vehicles at pre-tariff prices [5]. - Used cars remain exempt from tariffs, but their availability is decreasing, with the supply of used cars declining from 49.5 days in January to 45.2 days in February [6]. Group 4: Long-Term Industry Consequences - The Big 3 automakers face varying exposure to tariffs, with GM and Stellantis particularly vulnerable due to their reliance on Mexican manufacturing [7]. - The complex supply chain means that no automaker is fully insulated from tariff impacts, and the one-month exemption only delays the inevitable cost increases [8][9]. Group 5: Predictions and Future Outlook - Prolonged tariffs could lead to production slowdowns or shutdowns, with S&P Global Mobility warning of a potential "Tariff Winter" scenario, predicting a 10% decline in North American light-vehicle sales over several years if tariffs persist beyond eight weeks [10]. - The market's short-term boost does not resolve the long-term challenges posed by tariffs, and companies are strategizing on how to manage increased costs [12].

Core Viewpoint - The recent rally in auto maker stocks, particularly Ford and GM, is showing signs of faltering due to various market pressures and economic factors [1] Group 1: Company Performance - Ford's stock has declined by approximately 5% following disappointing earnings reports and concerns over production costs [1] - GM's shares have also dropped, reflecting investor anxiety over the company's ability to maintain profitability amid rising material costs and supply chain challenges [1] Group 2: Industry Trends - The auto industry is facing headwinds from increased interest rates, which are impacting consumer financing options and overall vehicle demand [1] - Analysts are noting a shift in consumer preferences towards electric vehicles, which may require traditional automakers to adapt their strategies significantly [1]