Core Viewpoint - Tesla has experienced significant stock volatility, with drops exceeding 30% on multiple occasions, indicating potential for abrupt declines in market capitalization [1] Group 1: Production Expansion Plans - Tesla plans to expand production at its Gruenheide factory from approximately 250,000 cars per year to one million, which involves constructing a new assembly hall the size of 60 soccer fields [3] Group 2: Identified Risks - Risk 1: Escalating price wars could lead to major margin compression, impacting profitability [4] - Risk 2: There is a decline in market share in critical growth areas, particularly in China, where Tesla delivered 73,145 vehicles in November 2025, a slight decrease from 73,490 units sold a year earlier [5][10] - Risk 3: Production shortfalls related to the Cybertruck and 4680 battery technology could hinder revenue generation, with a key supplier writing down its $2.9 billion cathode supply deal for 4680 batteries by over 99% [6][10] Group 3: Historical Stock Performance - Tesla's stock has seen significant downturns in past corrections, plummeting approximately 54% in 2018, 61% during the Covid crash, and 74% during the inflation surge, highlighting its volatility [7] Group 4: Financial Metrics - Revenue growth has declined by 1.6% over the last twelve months, while the three-year average growth stands at 9.3% [11] - The company has a free cash flow margin of almost 7.1% and an operating margin of 5.1% for the last twelve months [11] - Tesla's stock is currently trading at a P/E ratio of 278.0, indicating a high valuation relative to earnings [11]

Industry Overview - The electric vehicle (EV) industry faced significant challenges last year, exacerbated by the withdrawal of the $7,500 tax credit and auto tariffs, which pressured margins and increased losses for startup EV companies [1] - The U.S. EV industry is experiencing slowing sales and massive production overcapacity, leading to a price war [1] Company Performance: Lucid Group - Lucid Group (LCID) stock fell 65% last year and has continued to decline since its SPAC merger hype in 2021 [2] - Lucid's market capitalization is now below $4 billion, trading at a fraction of its 2021 highs [3] - The company reported a 55% increase in deliveries to 15,841 units last year, meeting its revised production guidance of 18,000 units [4] - Despite the increase in deliveries, Lucid continues to face significant losses and cash burn, with its cost of revenues in Q3 2025 nearly double its revenues for that quarter [5] - Lucid Motors burned nearly $1 billion in cash during the quarter, necessitating frequent capital raises at progressively lower share prices, leading to substantial dilution [6] - The partnership with Saudi Arabia's Public Investment Fund (PIF) has been crucial for Lucid, providing billions in funding through participation in stock sales since the company's 2021 listing [6]

Core Viewpoint - Meituan, a leading "super app" in China, reported an adjusted net loss of RMB16 billion in its 3Q25 earnings, marking its first quarterly loss since 2Q22, primarily due to a price war [1]. Financial Performance - The adjusted net loss of RMB16 billion indicates a significant financial challenge for Meituan, as it is the first quarterly loss since the second quarter of 2022 [1].

Core Insights - Meituan (MPNGY) is a "super app" in China that offers a wide range of services and has recently reported its 3Q25 earnings, showing an adjusted net loss of RMB16 billion, marking its first quarterly loss since 2Q22 due to a price war [1] Financial Performance - The adjusted net loss of RMB16 billion indicates a significant financial challenge for Meituan, as it is the first quarterly loss since the second quarter of 2022 [1]

Eli Lilly announcing it will cut the prices for introductory doses of Zep found if you pay cash. This is just the latest move in the price war with Novo Nordisk that's getting more and more confusing in terms of pricing for these weight loss drugs. Joining us now to talk about it is someone who understands everything, at least in regards to this industry health.Bloomberg health reporter Madison Miller. So what do we know about Zep. LB Now it's what the five mg doses, the starter doses are going to be even c ...

Report Industry Investment Rating - No information provided on the industry investment rating Core Viewpoints - Maintain buy on FAEACO 12.814 Perp due to its decent risk - return profile, larger cushion against the covenanted adj. net gearing ratio, and expected cash inflow from project deliveries in Australia and the UK [2] - Maintain buy on MEITUA 3.05 10/28/30 and MEITUA 0 04/27/28 (CB) as Meituan's overall credit profile remains robust with a strong net cash position, despite near - term headwinds [9] Summary by Related Catalogs Trading Desk Comments - Last Friday, there was small better buying on JP/AU financial names and TW lifers; balanced two - way flows on Chinese AMCs 2 - 5yr notes which closed 1 - 2bps tighter; MEITUAs were unchanged to 3bps wider [2] - In FRN space, PBs were buying Chinese banks, leasing, and SEA names, while AM flippers were taking profit; FAEACO 12.814 Perp dropped 5.6pts; LASUDE 26 increased 0.5pt; CWAHK 26 - 30 edged 0.1 - 0.5pt firmer [2] - In Chinese properties, VNKRLE 27 - 29 lowered 0.8 - 1.3pts; LNGFOR 29 was 1.7pts lower; ROADKG 28 edged 0.6 - 0.9pt higher; AMs were buying ZHHFGR and selling CPDEV [2] - Yankee AT1s were 0.1pt firmer, Japanese AT1s and insurance subs were largely stable, ACPM 5 1/8 Perp was 0.6pt higher; in SE Asia, some bonds were unchanged to 0.5pt higher [2] - This morning, BBLTB senior and JP financials tightened 1 - 2bps; VNKRLE 27 - 29 recovered 0.5 - 1.2pts; some bonds were 0.6 - 1.1pts higher, while others were 0.7 - 1.0pt lower [4] - MEITUAs were unchanged to 3bps wider post 3Q25 results announcement last Friday and unchanged this morning; IDASALs were unchanged this morning [4] Macro News Recap - Last Friday, S&P (+0.54%), Dow (+0.61%), and Nasdaq (+0.65%) were higher; UST yield was higher, with 2/5/10/30 year yield at 3.47%/3.59%/4.02%/4.67% [7] Desk Analyst Comments on Meituan - Meituan's 3Q25 adj. EBITDA dropped to negative RMB14.8bn due to the price war in China's food delivery market, with intense competition weighing on profitability [8] - The aggressive price war has eroded sector - wide margins, and the pressure is expected to persist until the competitive landscape becomes more rational, possibly through regulatory intervention [8] - Meituan's overall credit profile remains robust with a net cash position of RMB90.0bn as of Sep'25, which should cushion near - term earnings impact; near - term pressure on MEITUAs is expected, but further volatility presents better entry opportunities [9] Meituan's Financial Performance - Meituan's 3Q25 total revenue increased 2% yoy to RMB95.5bn, with core local commerce segment revenue decreasing 2.8% yoy to RMB67.4bn and turning into an operating loss of RMB14.1bn; new initiative segment revenue rose 15.9% yoy to RMB28.0bn, but segment loss increased 24.5% yoy to RMB1.3bn [12] - In 3Q25, selling and marketing expenses increased 90.1% yoy to RMB34.3bn, and R&D expenses increased 31.0% to RMB6.9bn; Meituan reported an operating loss of RMB19.7bn and negative adj. EBITDA of RMB14.8bn [13] - Meituan expects losses in the core local commerce segment and at the consolidated level to continue in 4Q25; the operating loss in the new initiative segment is expected to widen in 4Q25 for overseas expansion [13] - Meituan's liquidity position remained solid with a net cash position of RMB90.0bn as of Sep'25, down from RMB106.7bn as of Dec'24, and it had an average net cash position of RMB70.6bn in the past five years [14] Offshore Asia New Issues - No offshore Asia new issues were priced today [17] - Agricultural Bank of China Limited Tokyo Branch has a pipeline issue of 3 - year tenor with a coupon of SOFR + 100 and an issue rating of A1/-/- [18] News and Market Color - Last Friday, 70 credit bonds were issued onshore with an amount of RMB59bn; in Nov'25, 2,133 credit bonds were issued with a total amount of RMB2,286bn, a 17.8% yoy increase [22] - China Jinmao pledged a Shanghai property asset valued at RMB4.8bn as collateral for RMB9.9bn of syndicated loans [22] - China Water Affairs 1HFY26 EBITDA dropped 18.6% yoy to HKD2.2bn [22] - eHi Car 3Q25 fleet utilization rate rose 4.9 pct pt to 72.3% [22] - Seazen issued RMB616mn ABS backed by a Shanghai shopping mall [22] - HD Hyundai Heavy and its partner failed to win Poland's KRW8tn submarine project [22] - Mineral Industri Indonesia repurchased USD95.8mn of IDASAL 6.53 11/15/28 [22] - Melco Resorts Finance 9M25 operating revenue was up 14% yoy, and Studio City 9M25 operating revenue was up 10% yoy [22] - A Hong Kong tycoon seeks to sell some Rosewood Hotels [22] - Vedanta Resources is looking to raise USD600mn bank loan for refinance and secure INR20bn via INR - denominated NCDs at its subsidiary [22] - Vanke provided its entire stake in its property management arm as loan collateral to its controlling shareholder [22]

Core Insights - Novo Nordisk's recent pricing strategy aims to lower consumer costs and build political goodwill, potentially mitigating risks associated with government price controls and positioning the company favorably for future negotiations with Medicare [1] - The company is responding to competitive pressures from Eli Lilly, which has seen Novo Nordisk's market share in GLP-1 treatments decline from 71.6% to 56.3% in one year, by establishing a new aggressive price floor [2] - The strategy targets the cash-pay market, making GLP-1 treatments accessible to millions of uninsured or underinsured patients, thus expanding the total addressable market [3] Pricing Strategy - Novo Nordisk has reduced the prices of Wegovy and Ozempic to $349 per month, fundamentally altering its business model and raising questions about whether this is a desperate reaction or a calculated move for long-term dominance [4] - The company is funding this strategy through internal savings, which allows it to absorb short-term margin impacts while investing in future growth [5] Financial Outlook - Wall Street's concerns about lower revenue per prescription and profit margins are acknowledged, but the long-term financial case is viewed as compelling due to the strategic investment nature of the pricing changes [6] - A company-wide restructuring has been initiated, with a one-off cost of DKK 9 billion (approximately $1.4 billion) expected to generate annual savings of DKK 8 billion (about $1.24 billion) by the end of 2026, supporting the growth strategy [7] Market Positioning - The long-term growth potential is based on increasing sales from new cash-pay and Medicare patients, which is expected to lead to greater aggregate revenue and net income over time [9] - The strategy aims to create a loyal user base for current blockbuster drugs, providing a platform for future product launches, including the oral Wegovy pill and CagriSema combination therapy [10] Industry Impact - Novo Nordisk is reshaping the economics of the obesity market to leverage its manufacturing strengths and global scale, laying the groundwork for future growth that may be undervalued by the market [11] - The stock's current valuation, with a trailing P/E ratio of approximately 13.11 and a dividend yield of 1.72%, suggests a potential upside of over 24% based on analyst price targets [12] Strategic Transition - The company's strategy addresses a significant unmet need in the market, presenting a compelling opportunity for long-term investors during this period of transition and uncertainty [13]

Core Insights - The article emphasizes that car insurers are more concerned about an impending price war than the anticipated fallout from a trade war [1] Industry Overview - Car insurers have been preparing for the consequences of a trade war, which could impact their operations and profitability [1] - However, the article suggests that the real threat lies in a price war among insurers, which could lead to reduced premiums and profit margins [1] Market Dynamics - The competitive landscape in the car insurance industry is intensifying, with companies potentially slashing prices to attract customers [1] - This price competition could result in significant financial strain on insurers, as they may struggle to maintain profitability while trying to retain market share [1]

Industry Overview - China's local subsidies have propelled its dominance in high-tech sectors like electric vehicles and solar panels [1] - These subsidies have also contributed to oversupply and intense price competition, a phenomenon termed "involution" [1] Economic Impact - The "involution" is negatively impacting China's economy [1] Potential Solutions - China's government could implement measures to reverse this trend [1]

Core Insights - Insta360, a Chinese competitor to GoPro, is experiencing increased customer attraction due to price cuts in the full-degree action camera market, which has been intensified by competition with DJI [1] - The company reported over 90% revenue growth in Q3, despite the ongoing price competition [2] - Insta360 holds a 67% share of the global 360-degree camera market in 2023 and has responded to DJI's entry into this market by slashing prices and offering discounts [3] Company Strategy - Insta360 is aggressively entering the drone market, where DJI currently holds a 70% global market share [4] - The decision to enter the drone market was based on perceived unfulfilled demand and growth potential, with the founder noting that 360-degree drones represent a new category that surpasses traditional cameras and drones [5] Financial Performance - For Q3, Insta360 reported revenue of 2.94 billion yuan (approximately US$413 million), reflecting a 93% year-on-year increase [5] - However, net income decreased by 16% to 271.9 million yuan, attributed to significant investments in chip customization and strategic projects aimed at enhancing future competitiveness [6]