Ford Motor said on Monday it will take a $19.5 billion writedown and is killing several electric-vehicle models, in the most dramatic example yet of the auto industry's retreat from battery-powered models in response to the Trump administration's policies and weakening EV demand. The Dearborn, Michigan-based company said it will stop making the F-150 Lightning in its electric vehicle form, but will pivot to producing an extended-range electric model, a version of a hybrid vehicle called an EREV, which uses ...

Tesla Inc. (NASDAQ:TSLA) recorded a marked decline in U.S. sales during November to a near four-year low.Tesla Sales Fell 23%The company sold 39,800 units in the U.S. during November, a 23% year-on-year decline from the 51,513 units it sold in the previous year, Reuters reported on Thursday. The figures represent the automaker's lowest tally since January 2022.Tesla's market share in the U.S. EV sector rose to over 56.7% from 43.1% as legacy automakers scaled back their EV efforts.Tesla is offering 0% finan ...

Core Insights - Ford Motor Co. and SK On have decided to terminate their EV battery manufacturing partnership due to challenges in the electric vehicle market, including regulatory changes and declining demand [1][2][3] Company Developments - SK On will shift its focus towards Energy Storage Systems and has announced changes in ownership of the battery plants, with Ford taking full ownership of the Kentucky plant and SK On assuming control of the Tennessee plant [2][3] - The partnership, known as BlueOval SK, had involved significant investments, totaling approximately $11.4 billion, primarily for the $5 billion Kentucky plant, which was producing batteries for the F-150 Lightning EV Pickup Truck [4] Market Context - The decision to end the partnership aligns with a broader strategy to reduce debt and enhance profitability, as SK On has reported multi-million dollar losses amid falling EV demand [3] - Ford's EV sales have seen a drastic decline, with a reported 60% drop in November, raising concerns about the viability of ongoing EV projects [4] Regulatory Environment - Recent regulatory changes, including the rollback of Corporate Average Fuel Economy (CAFE) Standards by President Trump, have contributed to the challenges faced by the EV sector [5] - Ford's CEO, Jim Farley, has expressed a commitment to EVs despite these challenges, emphasizing the importance of remaining competitive in the global market [6]

Core Insights - Ford's EV sales in the U.S. dropped significantly by 60.8% in November following the expiration of the $7,500 federal tax credit, with total vehicle sales slightly declining by 0.9% compared to November 2024 [1][8] Sales Performance - Hybrid vehicle sales increased by 13.6% to 16,301 units, while fully electric vehicle sales fell sharply to 4,247 units from 10,821 units in November 2024 [2][8] - Specific models like the Mustang Mach-E saw a 49% decrease in sales to 3,014 units, and the F-150 Lightning experienced a 72% drop to 1,006 units. The E-Transit van's sales plummeted by 82% to 227 units [2][8] Financial Performance - Ford Model e, the EV division, reported a loss of $1.4 billion in Q3, accumulating year-to-date losses of $3.6 billion, with approximately $3 billion linked to current EV models and around $600 million invested in next-generation EVs [3] - The Zacks Consensus Estimate for Ford's 2025 EPS has decreased by 2 cents in the past 30 days, while the 2026 EPS estimate has increased by 1 cent in the last week [9] Strategic Shift - Ford is transitioning its focus from larger, battery-heavy vehicles to smaller, more profitable models based on the new Ford Universal EV Platform, with a midsize EV pickup expected to launch in 2027 at around $30,000 [3][4] - The company has completed 95% of sourcing for the new platform, with vehicle testing ongoing and equipment installation set to begin at the Louisville plant later this year [4] Competitive Landscape - In November, Tesla's registrations in France and Denmark fell by approximately 50%, with sales in France down 58% to 1,593 units and in Denmark down 49% to 534 units [5] - BYD Company Limited delivered 474,921 passenger vehicles in November, a decrease of 5.7% year-over-year, with battery-electric models growing by 19.9% [6] Valuation - Ford's stock has outperformed the Zacks Automotive-Domestic industry year-to-date, with shares gaining 26.6% compared to the industry's 31.3% growth [7] - From a valuation perspective, Ford appears undervalued, trading at a forward sales multiple of 0.32, significantly lower than the industry's 3.25 [10]

Core Insights - Coherent Corp.'s Silicon Carbide (SiC) substrates are essential for enhancing energy efficiency in electric vehicles (EVs), with the global EV market projected to grow at a CAGR of 32.5% through 2030, presenting significant growth opportunities for the company [1][8] Investment and Financial Performance - Coherent secured a $1 billion investment from Denso Corporation and Mitsubishi Electric Corporation in late 2023, which included minority stakes in the SiC business and supply agreements for substrates and epitaxial wafers, enhancing the company's financial flexibility for SiC expansion [2] - The company reported a 17% year-over-year growth in revenue for the first quarter of fiscal 2026, with gross margin expansion of 249 basis points, following a 23% revenue increase and 400 basis points gross margin growth in fiscal 2025, driven by demand from AI-related datacenters and communications [3][4] Competitive Landscape - Despite strong growth indicators, Coherent faces competitive pressure from Cognex and Applied Materials in the battery process equipment sector, which could impact pricing and market share [5][8] Stock Performance and Valuation - Over the past year, Coherent's stock has increased by 58.5%, outperforming the industry average of 11.8% and surpassing Cognex's 4.7% decline and Applied Materials' 39% growth [6] - Coherent trades at a forward price-to-earnings ratio of 29.58X, which is higher than the industry's 25.22X, while Applied Materials and Cognex trade at 26.19X and 34.13X, respectively [10] - The Zacks Consensus Estimate for Coherent's earnings for fiscal 2026 and 2027 has risen by 9.6% and 3.9% over the past 60 days, indicating positive market sentiment [13]

Core Viewpoint - Ford's stock has increased by 31% this year as the company shifts its focus towards efficient growth despite external challenges such as tariff uncertainties and changes in federal support for electric vehicles [1][2]. Financial Performance - Ford's current stock price is $13.28, with a market capitalization of $53 billion [4]. - The stock has a 52-week range of $8.44 to $13.97, and the company has a gross margin of 7.58% and a dividend yield of 4.52% [5]. Tariff Impact - The U.S. auto tariff policy has seen significant changes, including a 25% tariff on imported passenger vehicles and light trucks, which has raised manufacturing costs [6][7]. - In Q3, Ford's net earnings before interest and taxes (EBIT) related to tariffs was approximately $700 million, influenced by preferential tariff treatment [8]. - Recent tariff policy changes have been favorable for Ford, allowing it to offset tariffs on imported auto parts due to its large U.S. manufacturing volume [9]. Strategic Shift - Ford is reducing its costly electric vehicle investments and focusing on hybrid vehicles, commercial vehicles, and software solutions [2][10]. - The Model e segment has incurred losses of $3.6 billion over nine months, prompting a strategy adjustment towards cost efficiency and aligning supply with customer demand [10]. - The company plans to launch its Universal EV Platform (UEV) in 2027, targeting affordable vehicles starting at around $30,000 [11]. Commercial Vehicle Expansion - Ford is expanding its commercial vehicle lineup, which has seen growth in electric vehicle sales, particularly with the E-Transit Custom and E-Transit Courier in Europe [13]. - The adoption of commercial vehicles is supported by integrated software and services that enhance fleet management [13]. Competitive Landscape - The automotive industry is highly competitive, with Ford facing competition from General Motors, Toyota, and electric vehicle manufacturers like Tesla and Rivian [14]. - Despite a solid dividend yield of 4.6%, Ford's total returns have been modest, averaging 4.3% annually over the past decade [15]. - The company may benefit from favorable tariff conditions due to its U.S.-based manufacturing, but the competitive landscape suggests that better growth opportunities may exist elsewhere [16].

Performance & Market Positioning - EVs surpass gas cars in power and speed, offering a better driving experience, yet sales in the U_S_ lag behind global figures [2] - Tesla established narrative command of EVs by creating a seminal product, shifting perceptions from mere "vegetables" to desirable "desserts" [6][9] - Automakers are adding EVs to high-performance lines, including supercars, hypercars, and racing series, extending to mainstream vehicles like trucks and SUVs [11][12] - The 9000-plus-pound GMC Hummer EV accelerates from 0 to 60 mph in 2_8 seconds, while the Porsche Macan 4S electric achieves it in under 4 seconds [13] Challenges & Obstacles to EV Adoption - EV sales declined after federal credits ended, leading automakers to reconsider all-electric futures and increase gas and hybrid production [23] - Surveys indicate that charger availability, charging time, range, and price are major concerns for mainstream EV adoption [23] - EVs, on average, sell for approximately $9,000 more than the already high overall new car price in the U_S_ [24] - Customers buying high-end EVs sometimes prefer the feel and sound of gas engines, and simulated sounds have not been well-received [26][27][28] - Charger availability, charging time, and range anxiety remain significant obstacles to wider EV adoption [29] Future Trends & Solutions - The next battleground for EV domination will be on the consumer side, with EVs designed from a blank sheet as rolling computers with centralized hardware and constantly updated software [33] - Driver education should be integrated into EVs, using sensors to assess driver reactions and adjust acceleration accordingly to enhance safety [39][40] - The industry needs to make EVs easier to live with, more affordable to own, and smart enough to manage their immense power responsibly [41]

Core Viewpoint - The EV market is experiencing a shift towards American supply chains, with Tesla encouraging suppliers to avoid China-based parts due to national security concerns, which is expected to influence other automakers as well [2][3] Industry Trends - American automakers are focusing on reducing EV costs through improved manufacturing processes, exemplified by the Nissan Leaf priced under $30,000 compared to the average combustion vehicle price of about $50,000 [4] - Leasing options for EVs are becoming more attractive, with monthly payments for models like the Ford Mustang Mach-E and Honda Prologue EV ranging from $200 to $250 [5] Consumer Behavior - There is a growing consumer interest in the total cost of ownership of EVs, beyond just the initial purchase price, as indicated by a Bloomberg report forecasting higher EV sales in 2025 compared to 2024 [6] - Automakers are partnering with utility companies to provide incentives for home charging, such as free charging for 18 hours a day in Texas and cash back offers in New York [7][9] Technological Innovations - The introduction of vehicle-to-grid technology allows EV owners to sell electricity back to the grid, with Nissan offering $4,500 for connecting EV batteries in California [8][9] - Some automakers are enabling their EVs to serve as backup power sources for homes, providing additional value beyond the vehicle's MSRP [17][18] Market Outlook - A rebound in EV adoption is anticipated following the repeal of federal tax credits, with expectations of recovery in sales by 2026 [14][15] - American automakers are positioned advantageously due to their vehicles being designed for the American power grid, optimizing for off-peak electricity rates and offering features that enhance consumer trust and brand loyalty [16][19]

Core Insights - Ford Motor Company's President and CEO Jim Farley expressed that disassembling Tesla and Chinese competitors' vehicles was a humbling and shocking experience, prompting significant changes within Ford to enhance competitiveness in the electric vehicle (EV) market [1][3]. Group 1: Competitive Analysis - Ford discovered that Tesla's Model 3 has approximately 1.6 km less wiring compared to Ford's Mustang Mach-E, indicating a more efficient design [2]. - Similar findings were noted when comparing Ford's vehicles to those of Chinese EV manufacturers, highlighting a competitive disadvantage [2]. Group 2: Strategic Changes - The insights gained from the disassembly led to a restructuring at Ford, which has faced challenges in the competitive auto market [3]. - In 2022, Ford established its Model E division to focus on EV innovation, which has incurred costs of $5 billion by 2024, viewed by Farley as a challenge to be addressed [4]. Group 3: Commitment to EVs - Farley emphasized that Ford cannot abandon the EV segment, stating the necessity to remain competitive globally and not cede the market to Chinese manufacturers [5]. - In August 2025, Ford announced a $5 billion investment in EV production, which includes modifications to its manufacturing processes and upgrades to its Kentucky plant [5]. Group 4: Future Production Plans - The Kentucky plant, currently producing F-Series Super Duty trucks, is set to manufacture Ford's $30,000 electric pickup truck, scheduled for release in 2027 [6].

Core Insights - Tesla's Cybertruck chief, Siddhant Awasthi, is leaving the company after over eight years, marking a trend of high-profile departures within the automaker [1][3] - Awasthi played a significant role in leading the Cybertruck division from engineering to mass production and also managed the Model 3 program [1][6] - Tesla reported record deliveries in Q3, driven by a rush of American customers taking advantage of $7,500 tax credits for EV purchases, but analysts predict a significant sales decline in Q4 following the expiration of this incentive [2] Company Developments - The company has been offering substantial discounts on vehicles to boost sales amid a competitive landscape and executive turnover [3] - Recent executive departures include Troy Jones, the top sales executive in North America, and Jenna Ferrua, a human resources executive, alongside Milan Kovac, the top AI executive [3][7] - Increased competition from Chinese firms, particularly BYD, has posed challenges for Tesla, which has seen BYD surpass it as the world's largest EV manufacturer, achieving over $100 billion in revenue for the first time last year [7][8] Market Context - Tesla's Full Self-Driving technology and humanoid robots are seen as potential revenue drivers despite recent protests and vandalism against the company [10] - Elon Musk's recent $1 trillion pay package, the largest on record, is contingent on achieving ambitious performance metrics over the next decade [11]