Core Insights - General Motors (GM) outperformed Ford in 2025, achieving its highest market share in a decade at approximately 17%, while Ford ended the year with a market share of 13.2% [3][8] - Both companies are facing challenges in electric vehicle (EV) demand and high tariffs, but they continue to invest in innovation and technology [2][6] - GM's software and services business is becoming a significant profit driver, with deferred revenues expected to reach $7.5 billion by the end of 2026, a nearly 40% increase from 2025 [4] - Ford's focus on affordable EVs and its Ford Pro and Energy platforms positions it for diversified growth, with a projected EBIT of $8-$10 billion in 2026 [7][9] General Motors (GM) Summary - GM expects North America EBIT margins to improve to 8-10% in 2026, up from 6.8% in 2025, driven by lower costs and a stronger product mix [3] - The company repurchased $6 billion in shares and paid over $500 million in dividends in 2025, with a new $6 billion buyback program approved [5] - GM incurred $7.6 billion in EV-related charges in 2025 due to weaker demand and tax incentive changes, with expectations of smaller charges in 2026 [6] Ford Summary - Ford's Ford Pro division saw a 30% growth in paid software subscriptions in 2025, and the company plans a $1.5 billion investment in its Energy platform [9] - The company anticipates a significant reduction in tariff costs to about $1 billion in 2026, easing some financial pressure [11] - Ford's high dividend yield of over 4% is attractive for income-focused investors, and the company is restructuring its EV business to focus on affordability [10] 2026 Outlook: GM vs. Ford - GM projects adjusted EBIT of $13-$15 billion in 2026, with automotive operating cash flow expected to rise to $19-$23 billion [13] - Ford expects adjusted EBIT of $8-$10 billion, with free cash flow improving to $5-$6 billion [12] - Both companies are seen as investor-friendly, with GM focusing on buybacks and dividends, while Ford emphasizes high-yield payouts and disciplined capital allocation [20] Valuation Perspective - Ford currently appears more attractive from a valuation standpoint, particularly on a price-to-sales basis, suggesting potential upside for investors [17] - Consensus estimates favor Ford, projecting stronger year-over-year earnings growth for both the current and next fiscal year [21]

Core Viewpoint - Rivian's stock surged over 25% following a strong fourth-quarter performance and positive updates regarding the upcoming R2 SUV, despite a challenging regulatory environment for electric vehicles [2][3][4]. Financial Performance - Rivian reported approximately $1.29 billion in revenue and a narrower-than-expected loss of 70 cents per share, marking a second consecutive quarter of gross profit, indicating improved operating performance [3]. - The company projected deliveries of 62,000 to 67,000 vehicles in 2026, representing about 50% growth over 2025's deliveries of 42,247 vehicles [6]. Product Development - The R2 SUV is highlighted as a "key inflection point" for Rivian, with customer deliveries expected to begin in the second quarter of 2026 [4]. Regulatory Environment - The recent executive order by President Trump to roll back federal emissions standards may impact the electric vehicle market, as it reduces pressure on automakers to transition to electric vehicles [5]. - Despite the regulatory challenges, Rivian is proceeding with its vehicle launch, suggesting confidence in its market position [7].

Ford on Tuesday posted its largest quarterly loss since 2008 amid losses in the automaker’s electric vehicle (EV) division, as well as the impact of tariffs and a fire that impacted an aluminum supplier.The Detroit automaker reported a fourth quarter net loss of $11.1 billion after previously disclosing large writedowns to its EV programs, which the company is realigning in response to lower-than-expected consumer demand and changing federal subsidies.“I think the customer has spoken,” Ford CEO Jim Farley s ...

Fiscal Third Quarter Ended December 31, 2025 Financial Results February 10, 2026 Summary Financial Results for Nine Months Ended Operating Profit 591.5 billion yen Motorcycle business Group Unit Sales: 16.44 million units Achieved record-high unit sales, operating profit, and operating margin for nine months ended December 31, 2025 Automobile business Group Unit Sales: 2.561 million units Operating profit: - 166.4 billion yen (Operating margin - 1.6%) incl. tariff impacts and one-time EV-related expenses (- ...

Ford Motor Company - Ford is shifting away from all-electric vehicles (EVs) and will no longer produce an all-electric version of its popular F-150 truck, focusing instead on lower-priced EVs and hybrids [1][3] - This strategic change will incur a one-time charge of $19.5 billion but is expected to align the auto lineup with customer demand and potentially lead to stronger profits in the long term [3] - Ford's stock is currently trading near 52-week highs, with a price-to-earnings ratio above its five-year average, indicating that it may not be an attractive option for value investors [4] Rivian Automotive - Rivian is preparing to launch the R2, a lower-priced EV truck model aimed at expanding sales and achieving sustainable profitability [6][8] - The company has sufficient cash to bring the R2 to market by 2026, but consumer demand for the vehicle remains uncertain until it is available for sale [8] - Given the significance of the R2 launch, conservative investors may prefer to wait for sales results before investing, while aggressive investors might also hold off due to the product's importance [9] Investment Outlook - Currently, neither Ford nor Rivian stocks are considered strong buys, with potential changes in investment attractiveness depending on Ford's stock price movements or the success of Rivian's R2 launch [10]

Investment Rating - The report maintains an "In-Line" investment rating for the China Autos & Shared Mobility industry [4]. Core Insights - The report indicates a "wait and see" strategy among automakers as they navigate a challenging market environment, with many companies preparing for significant product launches post-Chinese New Year (CNY) while monitoring demand trends closely [54]. - Weekly order trends from January 26 to February 1 show a decline in demand for major electric vehicle (EV) manufacturers, with notable decreases in order volumes compared to previous weeks [2][3]. - The anticipated pre-CNY buying rush is expected to be less impactful this year, as original equipment manufacturers (OEMs) adopt a cautious approach until demand shows signs of recovery [54]. - Approximately 25 localities began accepting applications for trade-in subsidies in January, but the effectiveness of these subsidies is expected to be clearer only after the CNY break [54]. Summary by Relevant Sections Order Trends - BYD: 41-42k orders (down 8% week-over-week, down 41% month-over-month) [2] - NIO: 3.9-4.1k orders (down 5% week-over-week, down 49% month-over-month) [2] - XPeng: 7.5-7.7k orders (down 9% week-over-week, down 15% month-over-month) [2] - Tesla China: 9.5-9.7k orders (down 3% week-over-week, down 4% month-over-month) [2] - Aito: 5.2-5.4k orders (down 7% week-over-week, down 32% month-over-month) [3] - Geely Galaxy: 15-15.2k orders (down 6% week-over-week, down 32% month-over-month) [3] Market Environment - The report highlights that despite some seasonal promotions, the overall market remains tough, leading to a cautious outlook from manufacturers [54]. - The report suggests that the industry is in a transitional phase, with companies waiting for clearer signals of demand recovery before making significant moves [54].

Financial Performance - GM reported revenue of $185.0 billion for CY 2025[39], and $45.3 billion for Q4 2025[43] - The company's EBIT-adjusted was $12.7 billion for CY 2025[39], with a margin of 6.9%[39], and $2.8 billion for Q4 2025[43], with a margin of 6.3%[43] - Adjusted automotive free cash flow was $10.6 billion for CY 2025[39] and $2.8 billion for Q4 2025[43] - EPS-diluted-adjusted was $10.60 for CY 2025[39] and $2.51 for Q4 2025[43] Sales and Market Share - GM achieved 1 in total U S sales with 2.9 million deliveries in CY 2025, up 6% year-over-year[12, 109] - U S market share grew by 0.6 percentage points to 17.2% in CY 2025[12] - Global deliveries increased by 0.2 million year-over-year to 6.2 million units in CY 2025[47] Strategic Initiatives and Investments - GM invested $9.2 billion in capital projects and repurchased $6.0 billion of stock in CY 2025[13] - Deferred revenue from OnStar services was $5.4 billion at the end of 2025, up 65% year-over-year[22] - The company expects EV losses to improve by $1.0-1.5 billion due to right-sizing EV capacity[34] 2026 Guidance - GM projects EBIT-adjusted to be in the range of $13.0-15.0 billion for 2026[34] - Adjusted automotive free cash flow is expected to be $9.0-11.0 billion for 2026[34] - EPS-diluted-adjusted is guided to be $11.00-13.00 for 2026[34]

Core Insights - General Motors (GM) is expected to report a decline in Q4 revenue to $45.37 billion, a 5% decrease from $47.70 billion in the previous year, with adjusted EPS projected at $2.28 and adjusted EBIT at $2.77 billion [1] Financial Performance - GM's Q4 US sales decreased by 6.9% year-over-year to just over 703,000 vehicles, but full-year sales for 2025 increased by 5.5% to 2.853 million vehicles, making GM the top-selling automaker in the US [3] - Full-size pickup sales have risen for the sixth consecutive year, marking the best performance in 20 years, while full-size SUVs also contributed to GM's success in this segment for the fifth straight year [3] Electric Vehicle (EV) Business - EV sales in Q4 plummeted by 43% to just over 25,000 units, negatively impacting overall results, attributed to a "pull ahead" in Q3 sales before the expiration of the federal EV tax credit [4] - GM announced an additional $6 billion charge to its EV business due to lower-than-expected demand and the loss of the federal EV tax credit, bringing the total EV writedown to $6.6 billion [5][6] Guidance and Tariff Impact - GM raised its full-year 2025 profit guidance, citing tariff offsets from the White House, with full-year tariff exposure projected between $3.5 billion and $4.5 billion [2] - The company anticipates adjusted EBIT in the range of $12 billion to $13 billion and adjusted automotive free cash flow of $10 billion to $11 billion for the upcoming period [8]

Group 1 - General Motors Co. will end production of the Chevrolet Bolt EV, its most affordable electric vehicle, and shift Buick production from China to Kansas [1][3] - The production of the gas-powered Chevrolet Equinox will also be moved from Mexico to Fairfax, Kansas, with plans for the Equinox to be produced there by mid-2027 [2][3] - The company has recently relocated to a new headquarters in Detroit, which is expected to enhance collaboration among teams [4] Group 2 - CEO Mary Barra reaffirmed GM's commitment to electric vehicles despite laying off over 3,400 workers and incurring a $6 billion charge related to EVs, in addition to a previously reported $1.6 billion charge [5] - GM's stock price increased by 0.26% to $81.14 at market close and saw a slight rise to $81.15 in after-hours trading [6]

Group 1 - The National Highway Traffic Safety Administration (NHTSA) has initiated a probe into nearly 600,000 General Motors Co. vehicles due to reports of engine failures [1] - The investigation focuses on the L87 6.2L V8 engines, affecting models such as the 2021-2024 Cadillac Escalade, Chevrolet Silverado, Suburban, Tahoe, GMC Sierra 1500, Yukon, and Yukon XL [2] - The NHTSA's Office of Defects Investigation (ODI) received 36 Vehicle Owner Questionnaires alleging engine damage or failure following a recall last year [3] Group 2 - General Motors has relocated to a new headquarters in Detroit, which is significantly smaller in square footage compared to the previous headquarters, the "Renaissance Center" [4] - CEO Mary Barra has reaffirmed GM's commitment to electric vehicles (EVs), describing them as the company's "North Star," despite recent layoffs of over 3,400 workers across multiple EV production facilities [5] - GM's stock price increased by 0.02% to $80.84 during after-hours trading on January 16 [6]