Key Takeaways As we start out 2026, used car pricing is showing anticipated seasonal movement, with one important twist. According to the December 2025 release of the Used Car Price Trends report from Carfax, year-end shifts are once again giving buyers more negotiating leverage. This time, however, the most meaningful changes are happening in hybrids and electric vehicles (EVs). Late-year moves from 2025 are offering early signals about where prices may go next. While some vehicle categories are holding re ...

Core Insights - The Zacks Domestic Auto industry is poised for growth driven by affordable electric vehicles (EVs) and proposed tax incentives, despite economic challenges and rising tariffs [1][3][4] Industry Overview - The Zacks Domestic Auto industry encompasses companies involved in the design, manufacturing, and retailing of various vehicles, including passenger cars, trucks, and electric vehicles [2] - The industry is highly consumer cyclic and plays a significant role in employment and innovation, particularly in electric and autonomous vehicle development [2] Factors Shaping the Industry's Prospects - The introduction of more affordable EVs, priced at $35,000 or below, is expected to increase consumer adoption, countering the impact of higher tariffs on foreign competitors [3] - Proposed tax incentives, allowing buyers of U.S.-assembled vehicles to deduct up to $10,000 in interest on auto loans, are anticipated to stimulate demand for new vehicles [4] Market Performance - The Domestic Auto industry has underperformed compared to the broader auto sector and the S&P 500, with a return of 6.3% over the past year, while the sector and S&P 500 grew by 7.1% and 14.5%, respectively [10] Current Valuation - The industry is currently trading at an EV/EBITDA ratio of 53.06X, significantly higher than the S&P 500's 18.63X and the sector's 25.8X, indicating a premium valuation compared to historical levels [13] Company Highlights - **General Motors (GM)**: Holds a 16.5% share of the U.S. auto market, with strong demand for its brands and upcoming product launches expected to drive growth. GM has a Zacks Rank 1 (Strong Buy) and positive earnings revisions for 2025 and 2026 [14][15] - **Polaris Inc. (PII)**: Reported $1.8 billion in revenues for Q3 and expects adjusted sales of $6.9 billion to $7.1 billion for 2025. PII also holds a Zacks Rank 1, with significant earnings surprises in recent quarters [20][21] - **Blue Bird Corporation (BLBD)**: Focuses on school buses and alternative fuel applications, projecting fiscal 2026 revenues of $1.5 billion and continued growth. BLBD has a Zacks Rank 2 (Buy) and positive earnings revisions for 2026 [23][24]

Core Viewpoint - India is planning to extend the tax holiday for aircraft leasing firms in GIFT City from 10 years to 15 years to enhance its competitiveness in the global aircraft leasing market, which is currently dominated by Ireland [1][4]. Group 1: Tax Holiday Extension - The current tax waiver for aircraft leasing companies in GIFT City is 10 years, and extending it by five years aims to attract more lessors who profit significantly in the later years of the leasing cycle [2][4]. - The profit margins for aircraft leasing firms are around 1% in the early years but can surge to as high as 40% in the later years [3]. Group 2: Market Context - The global aircraft leasing market is valued at approximately $187 billion, with Ireland managing about half of the world's leased aircraft [4]. - India's commercial aircraft leasing market is estimated to be around $4.7 billion in 2023, growing at an annual rate of 11.8% [5]. Group 3: GIFT City Developments - GIFT City has successfully attracted global financial institutions through various tax incentives, positioning itself as a competitor to financial hubs like Singapore and Hong Kong [6]. - The proposed tax holiday extension would benefit local carriers such as IndiGo and Air India, as well as global subsidiaries like Rolls-Royce and Willis Lease Finance [7][8].

The Thai government, as part of an effort to stimulate the economy, wants to provide tax incentives to jumpstart domestic travel, particularly to second-tier provinces https://t.co/Xszx3reBxu ...

Singapore has ceased providing tax incentives to two single family offices linked to individuals associated with Prince Group, described by the US as one of Asia’s largest crime syndicates https://t.co/xfof7hWRkq ...

Projects to turn Pfizer’s old company headquarters into apartments are being spurred by tax incentives and zoning changes that are reshaping the middle of Manhattan. https://t.co/3srVucYZpf ...

Financial Performance Highlights - Q2 2025 revenue increased by 99% compared to Q2 2024, reaching $2340 million[13,28] - Q2 2025 adjusted EBITDA grew by 67% year-over-year to $1346 million[13,24,28] - H1 2025 revenue increased by 61% compared to H1 2024, totaling $4638 million[32,33] - H1 2025 adjusted EBITDA increased by 65% year-over-year to $2849 million[31,33] - Electricity segment revenue in Q2 2025 was $1599 million, a decrease of 38% compared to Q2 2024[28] - Product segment revenue in Q2 2025 increased by 576% to $596 million[28] - Storage segment revenue in Q2 2025 increased by 627% to $145 million[28] Strategic Initiatives and Growth - The company completed the acquisition of the 20MW Blue Mountain geothermal power plant for $88 million[15,60] - The company signed a $77 million tax equity partnership transaction for Heber 1 & 2 geothermal assets[15,41] - The company released for construction 50MW of new projects, including 28MW of geothermal and 22MW of solar projects[15] - The company expects approximately $160 million in cash proceeds from tax benefits on an annual basis for both tax equity transactions and PTC/ITC transfers[42]

Market Trends - Renewable energy companies' shares declined as the Senate discusses phasing out key tax incentives for wind and solar [1] - Coal miners' shares surged amidst the Senate's debate on a spending package aiding fossil fuels [1] Policy Impact - The spending package under Senate debate would phase out key tax incentives for wind and solar energy [1] - The spending package would aid fossil fuels [1]

Policy & Regulation - US wind and solar projects' tax incentives may face a more aggressive phase-out under the Senate's version of President Trump's spending package [1]