Core Viewpoint - Tesla will transition its Full Self-Driving (FSD) feature from a one-time purchase option to a subscription-only model starting February 14, as announced by CEO Elon Musk [1][2]. Group 1: Subscription Model - Tesla owners currently have the option to purchase FSD for $8,000 or subscribe for $99 per month [2]. - The shift to a subscription model aims to increase customer uptake of the FSD technology, which is deemed critical for Tesla's future [2]. Group 2: Subscription Statistics - As of the third quarter earnings call in October, only about 12% of Tesla's current fleet has subscribed to FSD, indicating a need for improved subscription rates [6]. - The company has seen a decrease in quarterly revenue from FSD compared to the same period last year [6]. Group 3: Regulatory and Legal Challenges - The rollout of FSD has faced regulatory scrutiny, including investigations by the National Highway Traffic Safety Administration regarding crash reporting and incidents involving FSD [7]. - Tesla is also facing potential legal challenges, including a ruling that could ban the sale of vehicles in California due to misleading marketing of its FSD and Autopilot systems [8]. Group 4: Executive Compensation Ties - Boosting FSD subscriptions is a key component of Elon Musk's compensation package, with a target of reaching 10 million subscriptions to unlock a potential payout of $1 trillion [6].

Core Insights - Mobileye (MBLY) is positioned as a significant player in the autonomous driving sector, with strong growth potential due to its technology being utilized by leading OEMs for Advanced Driver Assistance Systems (ADAS) [1] Company Overview - Mobileye's technology is integral to the development of ADAS, indicating its critical role in the future of autonomous driving [1] Market Position - The firm is recognized for its impressive business model and solid potential in the rapidly evolving autonomous driving market [1]

Core Viewpoint - Nexteer is expected to achieve solid performance in 2H25, with revenue projected at approximately US$2.3 billion, reflecting a 7% year-over-year increase, driven by strong demand in the US and Europe, favorable foreign exchange conditions, and stable contributions from the Chinese market [1][2] Financial Performance - 2H25 net profit is anticipated to exceed US$70 million, marking a significant sequential increase from 1H25 and demonstrating ongoing profit recovery since 2024 [2] - The full-year 2025 revenue is expected to grow by around 7% year-over-year, supported by robust US pickup sales and favorable FX environment [2][9] - Net profit forecasts for 2025 and 2026 have been raised by 7-10% to US$137 million and US$160 million, respectively, due to stronger profit recovery [1][9] Regulatory Developments - China's new national standard for steering systems, effective July 2026, incorporates Steer-by-Wire (SbW) technology and removes the mandatory mechanical link requirement, facilitating the mass production and adoption of SbW systems [3][10] - This regulatory change is expected to accelerate the transition to higher-level autonomous driving functions and enhance the value content per vehicle [3][10] Technology and Market Position - The shift to SbW technology is projected to increase the average value per vehicle for suppliers, with mass production value for SbW systems estimated to exceed US$400-500 per vehicle, significantly higher than traditional steering systems [4][10] - Nexteer is set to commence mass production of two exclusive high-value SbW programs in 2026, including the Tesla Cybercab and Li Auto's refreshed L9, positioning the company favorably in the market [5][10] New Business Lines - Progress in Rear-Wheel Steering (RWS) is ahead of schedule, with production expected to start in 2026, while Brake-by-Wire commercialization is slightly delayed, with initial production now anticipated in 2027 [6] Shareholding Changes - Beijing E-town Capital has reduced its stake in Nexteer by 41.48 million shares since May 2025, but remains the second-largest shareholder, with the reduction viewed as a routine financial decision rather than a reflection of the company's fundamentals [7][8] Valuation and Market Outlook - The target price for Nexteer has been raised to HK$9.00, based on an 18x 2026E P/E, reflecting improved earnings visibility and the anticipated contributions from the commercialization of SbW technology [1][10] - The share price is currently trading at 14.3x 2026E P/E, which is lower than its historical average and that of local peers in the autonomous driving supply chain [9]

Core Insights - Tesla has launched the new Model Y Standard Long Range RWD in Europe, featuring a WLTP range of 657 km, making it the most efficient Model Y to date [1][9] - The Model Y Standard is aimed at cost-conscious buyers seeking a larger vehicle without premium features, appealing to families and active lifestyles [2][5] - The vehicle is equipped with Tesla's AI4 computer, preparing it for future Full Self-Driving capabilities, enhancing long-term value for buyers [3][9] Pricing Strategy - The Model Y Standard is priced at €39,990 in most EU countries, offering a range of 534 km, while the Premium Long Range RWD is priced at $49,990, providing better range and more features [4] - Tesla's pricing strategy is designed to attract buyers in a competitive European EV market, where demand for electric SUVs is increasing [5] Competitive Landscape - Hyundai has expanded its IONIQ lineup with the IONIQ 9, a three-row electric SUV featuring a 110.3 kWh battery and a WLTP range of up to 620 km [6] - XPeng has launched the G6 and G9 models, utilizing next-gen 800V architecture for ultra-fast charging, with ranges of up to 585 km for G9 and 535 km for G6 [7] Stock Performance - Tesla shares have increased by 41.5% over the past six months, outperforming the industry growth of 40% [8] - The stock currently trades at a forward price-to-sales ratio of 14.16, above the industry average and its own five-year average, with a Growth Score of B [10]

Core Viewpoint - Mobileye Global Inc. is a significant player in the autonomous driving technology sector, focusing on advanced driver-assistance systems and autonomous vehicle technologies, competing with companies like Tesla and Waymo [1] Group 1: Company Performance - Wolfe Research downgraded Mobileye to a "Peer Perform" rating on January 12, 2026, with the stock priced at $11.55 at that time [2] - Despite the downgrade, Mobileye's stock price increased by 2.76%, reaching $11.55, with fluctuations between $11.09 and $11.65 during the trading day [3] - Over the past year, Mobileye's stock has experienced a high of $20.18 and a low of $10.04, indicating significant volatility [3] Group 2: Market Metrics - Mobileye's market capitalization is approximately $9.4 billion, reflecting its substantial market presence [4] - The trading volume for Mobileye today is 10.6 million shares, indicating active investor interest [4][5]

IVECO S-Way Autonomous Driving Truck with PlusAI The IVECO S-Way Autonomous Driving Truck developed together with PlusAI Turin, Italy / Santa Clara, CA, 12th January 2026. IVECO, the brand of Iveco Group N.V. (EXM: IVG) that designs, manufactures and markets light, medium and heavy commercial vehicles, announces a new programme with long-standing partner PlusAI, a global leader in AI-based virtual driver software for autonomous trucks. The two companies plan to launch the first deployment in Southern Eu ...

Core Viewpoint - PlusAI is expanding its partnership with IVECO to deploy Level 4 Autonomous Driving Systems in heavy-duty trucks in Southern Europe, marking a significant step in autonomous vehicle technology [1] Company Summary - PlusAI is recognized as a leader in AI software specifically designed for autonomous trucks [1] - IVECO is the commercial vehicle brand of Iveco Group N.V., indicating a strong presence in the commercial vehicle market [1] Industry Summary - The deployment of Level 4 Autonomous Driving Systems represents a major advancement in the autonomous driving sector, particularly for heavy-duty trucks [1] - The collaboration involves Spanish logistics operator Sesé and the Government of Aragon, highlighting the importance of partnerships in the logistics and transportation industry [1]

Group 1 - PlusAI is launching Southern Europe's first program to test heavy-duty autonomous trucks in partnership with Iveco Group brand IVECO, focusing on a 300-km freight route between Madrid and Zaragoza, with tests starting in 2026 [1][2] - The trials will be conducted in collaboration with Spanish logistics operator Sesé and the regional government of Aragon, indicating a strong local partnership for the initiative [2] - PlusAI is planning a public listing on Nasdaq through a business combination with Churchill Capital Corp IX, expected to close in the first quarter of 2026, highlighting its growth strategy [2] Group 2 - Iveco is set to be delisted following Tata Motors' announcement of a 3.8-billion-euro acquisition deal, which may impact its operational strategies and market presence [3]

Core Viewpoint - 2026 is positioned as a pivotal year for Tesla, with CEO Elon Musk emphasizing the importance of new hardware and software developments that will shape the company's future [1][2]. Group 1: Major Bets for 2026 - Tesla's strategic focus for the year includes advancements in self-driving software, the launch of a fully autonomous robotaxi service, the introduction of humanoid robots, and the unveiling of a long-delayed new vehicle [2][11]. - Analysts highlight that Tesla's future success is increasingly dependent on the scalability of its AI-powered autonomy [2][3]. Group 2: Robotaxi Expansion - The Tesla Robotaxi service began limited operations in Austin, Texas, in June 2025, utilizing Model Ys and Model 3s without human drivers, although "safety drivers" were initially present [3][4]. - Current operational areas for Tesla's robotaxis include Phoenix, San Francisco, Los Angeles, Austin, and Atlanta, with a focus on regulatory approvals for full autonomy [4]. Group 3: Cybercab Production - Tesla's Cybercab, a purpose-built autonomous vehicle without a steering wheel or brake pedals, is set to begin volume production in April 2026 [5][6]. - The company claims a significant lead in consumer self-driving data, with over six billion miles driven using Full Self-Driving in supervised mode [6]. Group 4: Competition and Market Dynamics - Musk asserts that Tesla is five years ahead of competitors like Nvidia in self-driving technology [7]. - Despite Tesla's advancements, competition is intensifying, particularly from companies like BYD, which has surpassed Tesla in vehicle sales and is targeting lower price points in key markets [14][15]. Group 5: Challenges Ahead - Tesla has faced two consecutive years of sales declines, with 2026 potentially marking a third year of decline, compounded by the loss of federal tax credits for EV buyers [16][17]. - Analysts note that while Tesla's product lineup includes innovations, it may be perceived as stale compared to competitors, impacting its market position [18]. Group 6: Stock Performance and Investor Sentiment - Tesla shares reached a record high of over $481 in mid-December, reflecting a 12% increase over the past year, including a 50% surge in the last six months [19]. - Investors emphasize the need for Tesla to introduce an affordable entry-level EV to attract uncertain shoppers in a slowing EV market [19][20].

Core Viewpoint - Progressive's stock appears undervalued after a 21% decline from its all-time highs, but the reasons for this discount require careful analysis [1] Business Performance - Progressive reported net premiums written of $63.7 billion for the first nine months of 2025, reflecting a 13% year-over-year increase, while net premiums earned rose 17% to $60.6 billion [2] - The company has a total of 38.1 million policies in force, which is a 12% increase year-over-year [5] - The combined ratio for Progressive stands at 89.5% in Q3, indicating an underwriting profit [6] Valuation Metrics - Shares are currently trading at approximately 13.4 times forward earnings and 3.6 times book value, down from a multiple of nearly 7 in early 2025 [7][8] - Despite the lower valuation compared to recent years, it does not appear particularly cheap when considering the company's historical valuation [8][9] Industry Context - Progressive operates in a regulated industry, facing challenges such as a $950 million accrual due to a Florida statute that requires insurers to return excess profits to policyholders, which impacted its combined ratio by 4.6 percentage points [10] - The auto insurance market is cyclical, and there are concerns about a potential shift from a hard market to a soft market, which could affect pricing and profitability [11] - Long-term uncertainties include the impact of advanced driver assistance systems and autonomous driving on the frequency of claims, potentially reducing profit pools for insurers [12] Dividend Policy - Progressive has a favorable dividend policy, including a recent special dividend of $13.50 on top of its regular $0.10 quarterly dividend, which adds value for shareholders [14][15] - The company's history of special dividends provides a level of risk mitigation for investors, especially in light of industry uncertainties [15] Investment Outlook - The recent pullback in Progressive's stock price, combined with strong growth and a more attractive valuation, makes it an interesting investment opportunity [16] - However, potential risks in the auto insurance market and technological disruptions should be considered when evaluating the stock [16][17]