Core Viewpoint - Ford is expected to report its fourth-quarter 2025 results, with an EPS estimate of 17 cents and automotive revenues of $41.2 billion, reflecting a year-over-year decline in both metrics [1][2]. Earnings Estimates - The EPS estimate for the upcoming quarter has increased by 10 cents over the past month, but it still represents a 56% decline year-over-year. Revenue estimates indicate an 8% decrease compared to the same quarter last year [2]. - For the full year 2025, automotive revenues are projected at $173 billion, showing a modest 1% increase year-over-year, while the EPS consensus indicates a 39% contraction. However, the EPS for 2026 is expected to grow by 35.2% from 2025 levels [3]. Performance Indicators - Ford has consistently surpassed earnings estimates in the past four quarters, and current indicators suggest a strong likelihood of an earnings beat this time, supported by an Earnings ESP of +16.06% and a Zacks Rank of 1 [4]. - The most accurate EPS estimate for the current quarter is 19 cents, while the Zacks Consensus Estimate is 17 cents [5]. Sales and Market Dynamics - Ford's overall sales rose by 2.7% in Q4 2025, totaling over 545,200 vehicles, with hybrid sales increasing by 17.6% year-over-year [8]. - The company faces challenges in its EV segment, with a significant drop in EV sales exceeding 50% due to the withdrawal of the federal EV tax credit, particularly affecting F-150 Lightning volumes [6][7]. Strategic Initiatives - Ford anticipates $19.5 billion in special charges related to restructuring its U.S. EV strategy, with $5.5 billion impacting cash flows through 2026 and 2027 [7]. - The Ford Pro unit is expected to contribute positively, with projected revenues of approximately $15 billion and EBIT of $1.4 billion, driven by rising paid software subscriptions [9]. Market Position and Valuation - Over the past six months, Ford's shares have increased by 24%, outperforming the industry and Tesla, while underperforming General Motors [10]. - The company is currently trading at a forward sales multiple of 0.32, indicating it may be undervalued compared to the industry [13]. Future Growth Prospects - Ford is shifting its focus towards hybrids and gas-powered vehicles in response to slowing EV adoption, which is expected to help maintain margins and volume [15]. - The company is also exploring future growth avenues, including a battery energy storage systems business and advancements in autonomous driving technology [18].

I am a journalist based in Detroit, having spent almost my entire career writing about business and economic subjects for The Wall Street Journal, New York Times, Detroit Free Press and Bloomberg. I'm the author of two books and am an acknowledged expert on the world automotive industry.Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receivin ...

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Ferrari released teaser images of its new fully electric sports car on Monday, revealing the name and interior design of the eagerly awaited first for the luxury Italian carmaker. ...

The recovery on Friday came after a sharp sell-off driven largely by weakness in technology shares, particularly software stocks. During that period, risk appetite had deteriorated, with Bitcoin also plunging before recovering some of its losses as markets stabilised. US equities traded lower on Monday as investors turned cautious ahead of a series of closely watched economic releases and another round of corporate earnings, following a volatile week that ended with the Dow Jones Industrial Average reaching ...

Week ahead: Markets to test rebound with earnings, jobs data due Proactive uses images sourced from Shutterstock Wall Street is heading into another crowded and potentially volatile week, with investors juggling a heavy earnings calendar, a backlog of delayed US economic data and lingering nerves after a sharp risk-off move that rattled stocks and crypto. The backdrop is eye-catching: the Dow Jones Industrial Average topped 50,000 for the first time last week. But instead of celebrating, markets are deba ...

General Motors Co. (NYSE: GM) is doubling down on battery technology leadership with a breakthrough chemistry launch planned for 2028, even as the automaker absorbs $7.2 billion in special charges from scaling back EV capacity. ...

Core Insights - The electric vehicle boom is transforming car manufacturing in America, with Rivian Automotive at the forefront, showcasing significant technological advancements and partnerships [1] - Rivian has achieved notable financial milestones, including a gross profit of $24 million in Q3 2025 and a 78% increase in sales year-over-year [4] Financial Performance - Rivian reported $1.56 billion in sales for Q3 2025, exceeding Wall Street's estimate of $1.46 billion, marking a substantial growth of 78% compared to the previous year [4] - The company experienced its second profitable quarter with a gross profit of $24 million, a significant recovery from a gross loss of $392 million the previous year [4] - Despite a loss of $0.65 per share in Q3 2025, this was better than the expected loss of $0.72 per share, indicating improved operational efficiency [4] Future Projections - Rivian's management has revised its delivery forecast for 2026 to between 66,000 and 68,000 vehicles, with revenue expected to grow from $5.4 billion in 2025 to over $6 billion in 2026 [5] - The adjusted EBITDA loss is projected to narrow to between $2 billion and $2.25 billion, reflecting ongoing improvements in financial performance [5] Market Sentiment - Wall Street analysts maintain a cautious but optimistic outlook on Rivian, with a consensus rating of "Hold" as they await the launch of the R2 SUV [6] - Out of 26 analysts, 9 recommend a "Buy," 13 suggest "Hold," and 4 advise "Sell," with an average price target of approximately $16.58, indicating potential upside [6] Legal Challenges - Rivian agreed to pay $250 million to settle a lawsuit from investors regarding undisclosed costs during its 2021 IPO, which previously led to a significant stock price drop [2]

Core Viewpoint - Rivian Automotive's stock is currently undervalued, presenting a potential investment opportunity as the company prepares for significant growth in sales and profitability in the coming years [1][2]. Group 1: Sales Growth Potential - Rivian is expected to experience major sales growth in 2026, driven by its aggressive push into self-driving technology and the introduction of in-house silicon chips and a next-gen computer [3][4]. - The imminent launch of Rivian's new model, the R2, priced at $45,000, is anticipated to attract a broader customer base, tapping into tens of millions of potential buyers who prefer vehicles under $50,000 [5][6]. - Sales growth is projected to jump to 27% in 2026, compared to a modest 8% growth rate in 2025 [6]. Group 2: Profitability Outlook - Rivian's stock trades at a significant discount compared to peers like Tesla, but this valuation gap may narrow as the company approaches profitability, particularly with the R2 model's sales expected to ramp up [7]. - The CEO's compensation structure includes bonuses tied to achieving profitability, which could be realized as the company scales up production and sales of the R2 [7].

Core Viewpoint - Chinese automaker BYD has initiated a lawsuit against the U.S. government, contesting President Donald Trump's authority to impose tariffs and seeking a refund for all levies paid [1] Group 1: Company Actions - BYD is challenging the legality of the tariffs imposed by the U.S. government, which it argues are excessive and unjustified [1] - The lawsuit aims to recover all tariffs that BYD has previously paid, indicating a significant financial impact on the company [1] Group 2: Industry Implications - The legal action taken by BYD may set a precedent for other automakers facing similar tariff challenges, potentially influencing the broader automotive industry [1] - The outcome of this lawsuit could affect trade relations between the U.S. and China, particularly in the automotive sector, which is heavily impacted by tariff policies [1]