Q4'25 Earnings Report 16 March 2026 4 Q 2 0 2 5 E A R N I N G S R E P O R T 2 Making Electric Mobility Accessible to Everyone | | BUILDING THE FOUNDATION | | | | | | STRATEGIC INVESTMENTS | | --- | --- | --- | --- | --- | --- | --- | --- | | 2017-2023 | | 2024-2025 | | 2026 | | | | | Established our brand and industrial | | Became the #1 mobility brand in Vietnam by vehicle sales | | | 1• | Expand overseas capacity | | | foundation, with the firm belief that electrification is the future of mobility | | | | ...

Vietnamese EV maker VinFast said it will resume construction on its North Carolina factory this year https://t.co/KaYg373psP ...

Core Insights - Tesla is entering the semiconductor industry to support its artificial intelligence (AI) initiatives, indicating a strategic shift towards in-house chip production to enhance its technological capabilities [1] Group 1: Company Strategy - The move into semiconductors is aimed at fulfilling Tesla's AI ambitions, suggesting a focus on developing proprietary technology to improve vehicle performance and autonomous driving features [1] - By producing its own chips, Tesla aims to reduce reliance on third-party suppliers, which could lead to better integration of hardware and software [1] Group 2: Industry Implications - This entry into the semiconductor market reflects a broader trend among automotive companies to invest in chip manufacturing as a response to supply chain disruptions and increasing demand for advanced technologies [1] - The semiconductor industry is becoming increasingly critical for automotive innovation, particularly in areas such as AI and electric vehicles, highlighting the competitive landscape [1]

Core Viewpoint - Lucid's new Gravity electric vehicle outperforms high-powered gas rivals in specifications and range, but the company faces significant financial challenges and bankruptcy risks in the near term [1][9][10]. Group 1: Product and Market Position - The Lucid Gravity starts at $95,000 and offers up to 450 miles of range, outperforming luxury gas-powered vehicles in performance metrics [1][6]. - A new mid-size vehicle is set to launch at approximately $50,000 by the end of 2025, which could expand Lucid's addressable market from $40 billion to an estimated $350 billion by 2030 [2][7]. - The Gravity has received accolades, including Car and Driver 10Best honors, indicating growing product credibility [8]. Group 2: Financial Performance - In Q4 2025, Lucid delivered 5,345 vehicles, marking a 72% year-over-year increase, with full-year revenue reaching $1.35 billion, up 68% year-over-year [1][8]. - The cost of revenue in Q4 was $944.64 million, while revenue was only $522.73 million, indicating that the company is selling vehicles at a loss [9]. - Lucid reported a negative free cash flow of $3.8 billion for the full year 2025, and prediction markets assign a 42.5% probability of bankruptcy before the end of 2026 [1][9]. Group 3: Strategic Challenges - The company must successfully transition from its premium Gravity platform to broader market volumes with the new mid-size vehicle to achieve profitability [2][10]. - Key uncertainties include the timely arrival of the mid-size platform, improvement in margins as production scales, and the sustainability of financial backing from the Saudi Public Investment Fund [10].

Group 1 - The press conference was held to discuss a timely disclosure announced in a press release [1] - Key executives present included Toshihiro Mibe, Noriya Kaihara, and Eiji Fujimura [1] - Mibe will provide background on the management decision, followed by Kaihara discussing the future direction of Honda's automobile business [2]

Market Overview - U.S. equity markets are experiencing a mix of technological optimism and geopolitical tensions, particularly due to rising energy prices and military developments in the Middle East [1] - S&P 500 futures rose 0.48% in premarket trading, indicating a potential rebound after a volatile week, despite concerns over escalating tensions in the Middle East [2] - The S&P 500 index is trading near 6,664 points, reflecting a 2.62% decline over the past month but a 17.43% increase compared to the same time last year, highlighting the strength of the AI-driven bull market [3] Major Index Performance - The Dow Jones Industrial Average closed at 46,548 points, down 0.28%, impacted by declines in Salesforce and Microsoft [4] - The Nasdaq Composite is showing resilience, driven by positive sentiment in the semiconductor sector [4] Upcoming Events - The Federal Reserve's policy decision is a key focus, with the current Fed Funds rate at 3.75% and market participants watching for potential shifts in the "dot plot" that may indicate a rate cut [5] - The Producer Price Index (PPI) data release later this week will be crucial for assessing the impact of rising energy costs on wholesale inflation [5] Corporate Developments - Nvidia's GTC developer conference begins today, expected to showcase advancements in Blackwell architecture and software that could enhance data center efficiency [6] - Nvidia shares rose 1.0% in premarket trading to $182.04, with analysts viewing the current price as a significant opportunity despite previous gains [7] - Apple is trading near record highs following strong initial sales for the iPhone 17, with Goldman Sachs raising its price target to $279 due to a robust upgrade cycle and anticipated future products [8] - Tesla received an upgrade to "Overweight" from Cantor Fitzgerald, with optimism surrounding the launch of the "Cybercab" and Robotaxi services [9] - Broadcom's AI-related sales nearly doubled to $8.2 billion, but the stock is under pressure due to a slight miss in its AI product order backlog [10] - Boeing saw a 2.56% increase in early trading, contributing to gains in the Dow alongside UnitedHealth and Verizon [10]

Market Overview - U.S. equity index futures show slight increases after three weeks of losses, with the S&P 500 down 1% week-over-week to 6,632, Nasdaq 100 down 0.2% to 24,380, Dow 30 down 1% to 46,558, and Russell 2000 down 0.9% to 2,480 [3] - Treasury yields have decreased after notable gains, with market expectations indicating a hold from the Federal Reserve potentially until December, with a 50% chance of a 25 basis point rate reduction in October [3] Stocks - Nvidia shares fell by 1.6%, while Micron saw a 5.1% increase, indicating mixed performance in the semiconductor sector [4] - Tesla shares decreased by 1%, with larger losses observed in other automakers [4] - Adobe's shares dropped 7.6% despite beating earnings and revenue expectations, overshadowed by the announcement of CEO Shantanu Narayen's impending departure [4] - NIO shares rose by 5.6% following an upgrade from HSBC due to improving profitability [4] - Fertilizer producers experienced declines after initial gains, with Intrepid Potash down 7.3%, The Mosaic Company down 6.5%, and CF Industries down 4.7% [4] - Klarna shares surged by 8.8% after insider buying disclosures, while AdaptHealth shares increased by 8.7% following a large purchase by One Equity Partners [4] Commodities - Gold prices hovered around $5,000, briefly breaking below short-term support after two consecutive weekly losses, influenced by Middle East tensions and a stronger dollar [5] - Oil prices (WTI) increased but later corrected from $100 to approximately $98, amid U.S. military actions in Iran and threats to crude export infrastructure [5] - Goldman Sachs predicts Brent crude will average over $100 in March and $85 in April, with a potential decline to the lower $70s later in the year if disruptions are short-lived [5] FX/Central Banks/Crypto - The U.S. Dollar Index reached a 10-month high of 100 before retreating, with intervention discussions from Japan affecting USD/JPY movements [7] - Bitcoin briefly surpassed its short-term resistance level of approximately $74,000, while Ether also rose above $2,200 [6] Economic Data - U.S. PCE price index for January rose 0.3% month-over-month, with core PCE also increasing by 0.4% month-over-month and 3.1% year-over-year [8] - January's personal income and spending both increased by 0.4% month-over-month [8] - Job openings improved to 6.95 million, while preliminary Q4 GDP slowed to 0.7%, below the 1.4% estimate [8] - UK GDP for January was flat month-over-month, missing the 0.2% forecast [8] - Canadian employment fell by 83.9K in February, raising the unemployment rate to 6.7% [8] - Chinese home price contraction worsened to -3.2% year-over-year in February, with an increase in industrial production and retail sales exceeding expectations [8]

Investment Rating - The investment rating for BYD is "Buy" (maintained) [1] Core Views - BYD has launched the second-generation blade battery and fast charging technology, addressing key consumer pain points such as slow charging and low-temperature charging difficulties [2][15] - The second-generation blade battery offers a 5% increase in energy density compared to the previous generation, with a maximum pure electric range of 1036 km and significantly improved safety [2][8] - The company plans to build 20,000 fast charging stations by the end of 2026, enhancing charging convenience and addressing long-distance travel concerns [12][13] Financial Projections - Total revenue is projected to reach RMB 602.315 billion in 2023, with a year-on-year growth of 42.04%, and is expected to grow to RMB 990.587 billion by 2027 [1] - Net profit attributable to shareholders is forecasted to be RMB 30.041 billion in 2023, with a significant year-on-year increase of 80.72%, and is expected to reach RMB 56.317 billion by 2027 [1] - The earnings per share (EPS) is estimated to be RMB 3.29 in 2023, increasing to RMB 6.18 by 2027 [1] Market Data - The closing price of BYD shares is RMB 99.67, with a market capitalization of approximately RMB 908.711 billion [5] - The price-to-earnings (P/E) ratio is projected to be 30.25 for the current year, decreasing to 16.14 by 2027 [1][19] Strategic Initiatives - BYD's "Fast Charging China" strategy aims to enhance the density of fast charging stations, with plans for 1,000 fast charging stations on highways and 18,000 in urban areas by the end of 2026 [12][13] - The new fast charging stations will utilize a unique design that allows for easier and more flexible charging experiences [12][15]

Investment Rating - The report maintains a "Buy" rating for BYD [1] Core Insights - BYD launched its second-generation blade battery and fast-charging technology, addressing key consumer pain points such as slow charging and low-temperature charging difficulties [2][8] - The second-generation blade battery offers a 5% increase in energy density compared to the previous generation, with a maximum pure electric range of 1036 km [2][8] - The company plans to build 20,000 fast-charging stations by the end of 2026, enhancing charging convenience and addressing long-distance travel concerns [12][13] Financial Projections - Total revenue is projected to reach RMB 777.1 billion in 2024, with a year-on-year growth of 29.02% [1] - Net profit attributable to shareholders is expected to be RMB 40.25 billion in 2024, reflecting a 34% year-on-year increase [1] - Earnings per share (EPS) is forecasted to be RMB 4.42 in 2024, with a corresponding P/E ratio of 22.57 [1] Market Position and Strategy - The report highlights BYD's ongoing technological innovations in the electrification sector, which are expected to enhance its market share [7][15] - The company is focusing on expanding its presence in overseas markets, particularly in Europe, to stabilize operations in high-standard markets [15]

Group 1 - Chery's new QQ3 EV is officially available for pre-sale with a price range of 68,920 to 89,985 yuan, marking a significant return of the QQ model after 23 years [1] - The new QQ3 aims to enhance Chery's competitiveness in the electric vehicle market through technological innovations in electrification and intelligence [1] - The revival of the QQ model is a strategic move for Chery to fill the gap in the smart and fun small car segment [1] Group 2 - Jietu has launched the Traveler and Free Traveler models with prices ranging from 12.79 to 17.29 million yuan, offering promotional prices to boost sales [2] - The Jietu boxy models have achieved over 60,000 cumulative sales globally, with a strategy focused on increasing volume in the competitive 100,000 to 160,000 yuan off-road market [2] - The company aims to rapidly increase sales to reach an annual target of one million vehicles [2] Group 3 - Lexus is set to globally debut the new generation ES at the Shanghai Auto Show, featuring a new design and options for hybrid and electric versions [3] - The new ES is positioned as a key model in Lexus's future electrification strategy, emphasizing the importance of the Chinese market [3] - The ability of the new ES to maintain its premium pricing and sales performance amidst fierce competition in the domestic electric vehicle market is a critical challenge [3] Group 4 - BYD has launched the Fangcheng Leopard Titanium 3 fast-charging version with prices between 153,800 and 169,800 yuan, alongside the pre-sale of the Titanium 7 EV starting at 220,000 yuan [4] - The introduction of fast-charging technology has led to a price increase of 20,000 yuan compared to the previous model, reflecting rising costs associated with new technology [4] - The competitive price range for new energy vehicles has shifted from 100,000-150,000 yuan to 150,000-200,000 yuan, indicating a structural change in the market [4] Group 5 - Dongfeng Yipai has unveiled new models including the Yipai 008 and 007 Flash Edition, with promotional offers for new and existing customers [5] - The Yipai brand experienced significant sales growth, with January 2026 sales reaching approximately 22,000 units, a 145% year-on-year increase [5] - The competitive landscape in the 150,000 yuan segment for new energy vehicles is intensifying, posing challenges for Dongfeng Yipai to maintain growth [5]