Far from the magnet it once was for investors during the 2020-2021 boom, electric vehicle (EV) companies have been in the penalty box for the last couple of years. Investors’ apathy towards EV stocks is not surprising, as most U.S. startup EV companies that went public between 2020 and 2021 have either gone bankrupt, are on the verge of doing so, or are struggling to stay relevant. Legacy Automakers Have Booked Massive Losses in Their EV Business Detroit automakers’ EV operations, on the other hand, are ...

Core Viewpoint - General Motors (GM) is experiencing strong performance driven by robust vehicle offerings, a growing software and services business, and restructuring efforts in China, alongside a revised electric vehicle (EV) strategy to address slower adoption rates [1] Stock Performance - Over the past six months, GM shares have increased by approximately 42%, outperforming industry peers such as Ford, which rose by 22%, and Stellantis, which declined by 21% [2] Market Position and Strategy - In 2025, GM became the top-selling automaker in the U.S., achieving a market share of around 17%, marking its fourth consecutive year of growth [6] - GM has adjusted its strategy in response to slower EV demand, selling its stake in the Ultium Cells Lansing plant and reallocating assembly capacity from EVs to internal combustion engine vehicles, incurring $7.6 billion in charges to reduce EV capacity [7] Financial Outlook - GM anticipates North America EBIT margins to be in the range of 8-10% for 2026, an increase from 6.8% in 2025, driven by lower costs and a better product mix [8] - The company expects net income for 2026 to be between $10.3 billion and $11.7 billion, with adjusted EBIT projected at $13 billion to $15 billion [13] Software and Services Growth - GM's software and services business is becoming a significant profit driver, with OnStar reaching 12 million subscribers and Super Cruise subscribers growing by nearly 80% year-over-year [9] - Deferred revenues from software and services are expected to rise to about $7.5 billion by the end of this year, nearly 40% higher than 2025 levels [9] Capital Investment and Shareholder Returns - Over the past two years, GM has invested more than $20 billion in capital projects, with plans to spend $10-12 billion annually in 2026 and 2027 [11] - GM has returned $23 billion to shareholders since late 2023, including $6 billion in share repurchases and over $500 million in dividends in 2025 [12] Valuation and Market Sentiment - GM stock is currently trading at a forward P/E ratio of 6.48, lower than Ford's 9.06 and Stellantis's 4.32, indicating it may be undervalued [15] - The consensus price target for GM stock is $92.24, suggesting an upside of more than 13% from current levels [19]

Core Viewpoint - Rivian is expected to experience significant growth in vehicle deliveries in 2026, despite facing challenges in 2025 and a recent decline in stock performance [1][8]. Financial Performance - Rivian's fourth-quarter revenue fell 26% year over year to approximately $1.3 billion [1]. - The company's automotive revenue in Q2 2025 decreased from $1.074 billion in Q2 2024 to $927 million [5]. - However, Q3 2025 saw a revenue increase of 78% year over year to nearly $1.6 billion, influenced by the expiration of an electric vehicle tax credit [5][6]. - Overall, Rivian reported an 8% year-over-year revenue increase last year, which is considered unimpressive given its high valuation [7]. Future Outlook - For 2026, Rivian anticipates delivering between 62,000 and 67,000 vehicles, indicating a year-over-year growth rate of 53% [8]. - Management expects improvements in adjusted EBITDA for 2026, despite the challenges of scaling new vehicle production [9]. - The introduction of the R2 model is expected to reduce manufacturing complexity and costs, positioning Rivian to expand its market and increase sales [10]. Market Position - Rivian's current market capitalization is approximately $20.5 billion, with shares trading at around $16.47 [12]. - The automotive industry remains highly competitive, with Rivian facing challenges not only from other electric vehicle manufacturers but also from larger traditional automakers [12].

Core Insights - The company has developed a new Universal EV, focusing on cost engineering and efficiency improvements to remain competitive in the market [1][2] - The starting price of the new EV is set at $30,000, which is $20,000 lower than the average price of new cars in America, achieved through significant battery size reduction while extending the range by approximately 50 miles [2][3] - The timeline for the rollout includes a pickup truck launch in 2027, followed by the introduction of level three semi-autonomous features in 2028, which is unusual for a vehicle in this price range [4][5] Competitive Landscape - The company aims to counter the pricing and technological advantages of Chinese EV manufacturers, who offer vehicles at significantly lower prices, such as a $10,000 EV [6][7] - The strategy involves creating an affordable yet desirable vehicle with advanced features, positioning it against both price and technology competition from Chinese firms [8]

Detroit’s big three automakers took a combined $50 billion hit in write-downs as they scale back their electric-vehicle businesses. To put that in perspective, that’s around the size of the US government bailout during the Great Recession. According to Kelly Blue Book figures, US electric vehicle sales fell 36% to 234,171 units in the fourth quarter of 2025. That’s a drop so steep that it calls for a Jeep Wrangler, if only the owner of the Jeep brand, Stellantis, weren’t the one smarting from the fall. Las ...

Core Insights - Rivian (RIVN) experienced a significant stock increase of 19.8% this week, closing at $17.73, while Tesla (TSLA) only gained 1.5% during the same period [1] - Rivian's Q4 earnings report revealed a gross profit of $120 million and a year-over-year cost improvement of over $7,200 per vehicle [1] - The company's software revenue surged 109% to $447 million in Q4, now constituting over one-third of total revenue [1] Financial Performance - Rivian's Q4 revenue reached $1.29 billion, exceeding estimates by $13 million, despite a 45% year-over-year decline in automotive revenue to $839 million [1] - The decline in automotive revenue was attributed to a $270 million drop in regulatory credit sales and reduced demand following the expiration of the federal EV tax credit [1] - Rivian reported an adjusted loss of $0.53 per share, better than the expected loss of $0.67, and ended the year with $6.08 billion in cash and equivalents [1] Product Development - The R2 SUV is scheduled for launch in Q2 2026, aimed at competing with Tesla's Model Y, with delivery guidance set at 62,000 to 67,000 units for 2026 [1] - Manufacturing validation for the R2 has been completed, and early reviews of pre-production builds have been positive [1] - Rivian's manufacturing facility expansion is complete, enabling rapid production scaling once R2 production begins [1] Software Revenue Growth - Software and services revenue increased significantly, driven by a joint venture with Volkswagen, which provides vehicle electrical architecture and software development services [1] - This segment's growth cushioned the impact of declining vehicle sales, indicating a shift towards a hybrid technology platform model [1] - The software revenue growth suggests a potential for higher margins compared to traditional vehicle manufacturing [1]

Core Insights - The global automotive industry is transitioning towards electrification, with varying paces among automakers, particularly highlighting China's advanced position in electric vehicle (EV) development and infrastructure [1] Group 1: Ferrari's Position in the EV Market - Ferrari is increasingly recognized as an EV stock, contrary to common perceptions that associate EV investments primarily with companies like Tesla and BYD [2] - The sales mix of Ferrari has shifted significantly from 78% internal combustion engines and 22% hybrids in 2022 to approximately 55% internal combustion engines and 45% hybrids in the first half of 2025 [3] - Despite the lower profitability of full-electric vehicles compared to gasoline models, Ferrari's hybrid sales have contributed to margin gains in recent years [3] Group 2: Future EV Strategy - Ferrari is planning the launch of its first full-electric vehicle, the Elettrica, which will be crucial in determining the company's future in the EV market [6] - The timing of entering the full-EV market is critical; entering too early could lead to costly adjustments, while entering too late risks losing future customer engagement [6] Group 3: Market Demand and Brand Strength - Ferrari benefits from strong demand for its products, a backlog of customers awaiting new supercars, and exceptional profit margins compared to competitors [7] - The company's racing heritage enhances its brand appeal, positioning it uniquely in the luxury EV segment, which is still developing [7]

Core Viewpoint - Wall Street analysts are reassessing their outlook on Rivian Automotive as the company navigates a volatile start to the year, with a notable stock surge following an earnings beat [1] Financial Performance - For Q4 2025, Rivian reported an adjusted loss of $0.54 per share, which is narrower than the projected loss of $0.68 per share, indicating improved efficiency amidst margin pressures faced by many EV peers [2] - Consolidated revenue for the full year 2025 rose 8% year over year to $5.39 billion, up from $4.97 billion in 2024 [2] Delivery Guidance and Stock Movement - Rivian updated its 2026 delivery guidance to 62,000 to 67,000 vehicles, reflecting expected growth as production of its next-generation R2 platform ramps up, signaling a shift towards becoming a higher-volume EV competitor [3] - Following the updated guidance, RIVN shares jumped 26% to close at $17.73, although the stock remains down nearly 9% year to date [3] Analyst Ratings and Price Targets - UBS upgraded its rating on Rivian to 'Neutral' from 'Sell' and raised its price target to $16 from $15, citing a more balanced risk-reward profile after a valuation reset [6] - Deutsche Bank upgraded Rivian to 'Buy' from 'Hold' and raised its price target to $23 from $16, highlighting inflecting fundamentals and a de-risked 2026 outlook as key drivers [9] Production and Market Position - UBS noted that Rivian's 2026 delivery guidance could support a stronger exit rate into 2027 if execution improves, although near-term risks remain [7][8] - Deutsche Bank emphasized that the upcoming R2 launch in Q2 could mark an important milestone for Rivian, with cost improvements and a stabilizing competitive landscape strengthening the company's position [10]

Core Insights - The SEC closed its investigation into Fisker in September 2025, approximately one year after it was initiated [1][2] - The investigation revealed around 21.7 gigabytes of electronically maintained records, but the extent of the investigation's progress remains unclear [2] - Fisker was one of the last electric vehicle startups under SEC investigation, with other companies like Nikola and Lucid Motors having settled their cases [3][4] SEC Enforcement Actions - The closure of the Fisker investigation coincides with a notable decline in SEC enforcement actions, with only 313 actions initiated in 2025, marking a 27% decrease from the previous year [3] - Total monetary settlements fell by 45% from 2024, indicating a broader trend of reduced enforcement during President Trump's second term [3] Company Background - Fisker filed for bankruptcy in June 2024, facing significant challenges with its first electric vehicle, the Ocean SUV, and financial difficulties leading up to its collapse [9] - The company utilized Chapter 11 bankruptcy to liquidate its assets and sell its remaining inventory of Oceans [9] Remaining Investigations - Currently, the only active SEC investigation into an electric vehicle startup is related to Faraday Future, which has been ongoing for nearly four years [5] - In July 2025, the SEC issued Wells notices to Faraday and its executives, indicating a recommendation for enforcement action, but no further action has been taken since [5]

Core Viewpoint - Rivian reported stronger-than-expected Q4 results, achieving its first annual gross profit, which led to a significant increase in its stock price after hours [1][2]. Financial Performance - Rivian's Q4 revenue was $1.29 billion, surpassing the expected $1.26 billion, while the loss per share was $0.54, better than the anticipated $0.68 [2]. - The company achieved its first annual gross profit of $144 million, with Q4 contributing $120 million [2]. Stock Market Reaction - Following a decline of over 5% during the February 12 session, Rivian's stock rebounded by nearly 20% in after-hours trading, reaching a price of $16.77 [1][3]. Future Outlook - Rivian's guidance for 2025 includes expectations to ship between 62,000 and 67,000 vehicles, indicating a potential annual delivery growth of up to 59% [5]. - Despite the positive outlook, the company anticipates operating at a loss in the current year, which poses risks to investors [6]. Analyst Ratings and Market Sentiment - Wall Street analysts maintain a 'Hold' rating for Rivian, with a price target of $17.75, which is above the recent trading price but reflects cautious sentiment [8][11]. - The only recent rating revision was bearish, with Mizuho Securities assigning a 'Sell' rating while raising the price forecast from $10 to $11 [11].