Economically, the only car anyone should buy is a used Model 3. >> I know >> forever my favorite Neiake because it is unequivocally true and makes everybody feel feelings and I love it. >> I think people actually want electric cars regardless of like all the noise and like people who experience them are like this is a better experience than gas cars. I'm saying this as somebody who has gas cars and like the dumbest possible gas cars and loves them very much.There's no reason for my daily driver to be anythi ...

Core Viewpoint - Nissan is facing a significant crisis, with a sharp decline in global sales and a substantial net loss for the first half of the 2025 fiscal year, marking its first half-year loss in five years [1][2][4]. Sales Performance - In the first half of the 2025 fiscal year (April to September), Nissan's global sales fell by 7.27% year-on-year to 1.48 million units, with sales in China and Japan dropping by 17.6% and 16.5%, respectively [1][4]. - For the entire 2025 fiscal year, Nissan forecasts a 2.9% decline in global sales to 3.25 million units, with specific market predictions of a 7.4% drop in China to 645,000 units and a 3.4% drop in Japan to 445,000 units [2][4]. Financial Performance - Nissan's revenue for the first half of the 2025 fiscal year decreased by 6.69% to 5.58 trillion yen, resulting in an operating loss of 27.7 billion yen and a net loss of 221.92 billion yen, compared to a net profit of 19.22 billion yen in the same period last year [1][4]. - The company anticipates an operating loss of 275 billion yen for the entire fiscal year, although it believes it can achieve breakeven without tariff impacts [2][4]. Strategic Response - To address the financial challenges, Nissan is implementing a strategy of "asset monetization, capacity reduction, and personnel optimization," which includes selling its headquarters in Yokohama for 97 billion yen and initiating the "Re:Nissan" transformation plan [2][8]. - The "Re:Nissan" plan aims to reduce global production facilities from 17 to 10 by the 2027 fiscal year, with a target production capacity of 2.5 million units and a workforce reduction of 20,000 employees, approximately 15% of its total workforce [7][8]. Market Challenges - Nissan is experiencing supply chain issues, particularly due to export controls affecting semiconductor supplies, which have led to production cuts at its facilities [10]. - The company is also facing technological and strategic challenges, having fallen behind competitors like Tesla and BYD in the electric vehicle market due to insufficient investment and slow model updates [11][12]. Focus on China - Nissan is shifting its focus to the Chinese market, viewing it as critical for its recovery, and is decentralizing decision-making to local teams [13][14]. - The company plans to launch several new models developed by its Chinese teams, aiming to regain market share in a competitive environment where its market presence has been declining [15][18].

Core Viewpoint - Nissan is facing a significant crisis, with a sharp decline in global sales and a substantial net loss for the first half of the 2025 fiscal year, marking its first half-year loss in five years [1][5][9]. Sales Performance - In the first half of the 2025 fiscal year (April to September), Nissan's global sales fell by 7.27% to 1.48 million units, with significant declines in key markets: China down 17.6% to 279,000 units and Japan down 16.5% to 186,000 units [1][9]. - For the entire 2025 fiscal year, Nissan forecasts a 2.9% decline in global sales to 3.25 million units, with expected drops of 7.4% in China and 3.4% in Japan [4]. Financial Performance - Nissan's revenue decreased by 6.69% to 5.58 trillion yen, with a net loss of 221.92 billion yen, a stark contrast to a net profit of 19.22 billion yen in the same period last year [1][9]. - The company anticipates an operating loss of 275 billion yen for the entire fiscal year, although it believes it could break even without tariff impacts [5][9]. Strategic Response - To address the financial crisis, Nissan is implementing a strategy of asset monetization, capacity reduction, and personnel optimization, including the sale of its Yokohama headquarters for 97 billion yen [5][12]. - The "Re:Nissan" transformation plan aims to streamline operations, reduce global production sites from 17 to 10 by the 2027 fiscal year, and cut 20,000 jobs, approximately 15% of its workforce [11][12]. Market Challenges - Nissan is grappling with external challenges such as tariffs and supply chain disruptions, which are complicating its recovery efforts [6][14]. - The company is also facing technological and strategic setbacks, particularly in the electric vehicle sector, where it has fallen behind competitors like Tesla and BYD [15][20]. Focus on China - Nissan is shifting its focus to the Chinese market, viewing it as critical for its recovery, and is decentralizing decision-making to empower local teams [16][18]. - The company plans to launch several new models developed by its Chinese team, indicating a strategic pivot towards local market needs [17][18].

Core Viewpoint - Nissan is facing a significant crisis, with a sharp decline in sales and a substantial net loss for the first half of the 2025 fiscal year, marking the first half-year loss in five years [1][4][6]. Sales Performance - In the first half of the 2025 fiscal year (April to September), Nissan's global sales dropped by 7.27% to 1.48 million units, with sales in China and Japan declining by 17.6% and 16.5%, respectively [1][6]. - For the entire 2025 fiscal year, Nissan forecasts a 2.9% decrease in global sales to 3.25 million units, with expected declines in key markets: China (-7.4% to 645,000 units), Japan (-3.4% to 445,000 units), and North America (-0.2% to 1.3 million units) [4][6]. Financial Performance - Nissan's revenue for the first half of the 2025 fiscal year fell by 6.69% to 5.58 trillion yen, resulting in an operating loss of 27.7 billion yen and a net loss of 221.92 billion yen, compared to a net profit of 19.22 billion yen in the same period last year [1][6][9]. - The company anticipates an operating loss of 275 billion yen for the entire fiscal year, although it believes it can achieve breakeven without tariff impacts [4][6]. Strategic Response - To address the financial challenges, Nissan is implementing a strategy of "asset monetization, capacity reduction, and personnel optimization," which includes selling its headquarters in Yokohama for 97 billion yen and initiating the "Re:Nissan" transformation plan [4][10]. - The "Re:Nissan" plan aims to reduce global production facilities from 17 to 10 by the 2027 fiscal year, with a target production capacity of 2.5 million units and a workforce reduction of 20,000 employees, approximately 15% of its total workforce [9][10]. Market Position and Challenges - Nissan's supply chain risks are exacerbated by semiconductor shortages, leading to production cuts at its facilities [12]. - The company is struggling with technological and strategic lag, particularly in the electric vehicle sector, where it has fallen behind competitors like Tesla and BYD [13]. - Nissan is shifting its focus to the Chinese market, emphasizing local development and decision-making to regain market share, as its presence in China has been declining [14]. Competitive Landscape - In contrast to Nissan's struggles, Toyota's global sales increased by 5% to 4.783 million units in the same period, and Honda maintained profitability despite a sales decline [15].

Financial Data and Key Metrics Changes - Underlying revenue growth for Q3 was 5%, consistent with H1 run rate, driven by sports medicine and advanced wound management [2][3] - Revenue for the quarter was $1.5 billion, with a reported growth of 6.3% due to a 130 basis point tailwind from foreign exchange [5] - Free cash flow guidance raised from over $600 million to around $750 million due to strong working capital discipline and operational efficiencies [3][12] Business Line Data and Key Metrics Changes - Orthopedics grew 4.1% on an underlying basis, with strong performance in hips in the U.S. offsetting softer knee sales [5][7] - Trauma and extremities grew 7.5%, with strong contributions from Evos plating system and Atos shoulder [8] - Advanced wound management grew 6%, with advanced wound care growing 1.1% and Bioactives up 12.2% [9][10] Market Data and Key Metrics Changes - U.S. revenue grew 5.5%, while other established markets grew 3.9% and emerging markets grew 5.4% [5] - Excluding China, underlying revenue growth was 6.4%, with joint repair growth at 13% [3][9] - Stability and gradual recovery observed in China following the anniversary of the joint repair VBP [8] Company Strategy and Development Direction - Innovation remains central to growth, with over half of growth coming from products launched in the last five years [13] - The company is focused on cash and capital efficiency, expecting further margin expansion beyond 2025 [12][42] - Upcoming capital markets day will outline the next phase of growth and midterm priorities [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Q4 revenue guidance, supported by new customer integrations and product placements [21][31] - Acknowledgment of ongoing portfolio rationalization impacting U.S. knees, with expectations for improvement as new products are launched [27][30] - Anticipated headwinds for 2026 include tariffs and skin substitutes pricing, but management remains optimistic about margin expansion [39][41] Other Important Information - The company launched several new products, including the Alevi Complete Care dressing and Legion medial stabilized knee [14][15] - Management is committed to building a sustainable business in China, evaluating product lines for investment [43] Q&A Session Summary Question: Concerns about revenue guidance and Q4 performance - Management remains confident in Q4 revenue guidance, citing strong sales funnel and new customer integrations [21][31] Question: U.S. knees performance and portfolio rationalization impact - Management acknowledged the gap between U.S. knees and market performance, attributing it to ongoing rationalization efforts [27][30] Question: Margin guidance and headwinds for 2026 - Management expects margin expansion despite headwinds, with specific guidance to be provided at the capital markets day [39][41]

Financial Data and Key Metrics Changes - Underlying revenue growth for Q3 was 5%, consistent with H1 run rate, driven by sports medicine and advanced wound management [2][3] - Revenue for the quarter was $1.5 billion, with a reported growth of 6.3% due to a 130 basis point tailwind from foreign exchange [5] - Free cash flow guidance raised from over $600 million to around $750 million, reflecting improved working capital discipline and operational efficiencies [3][12] Business Line Data and Key Metrics Changes - Orthopedics grew 4.1% on an underlying basis, with strong performance in hips in the US offsetting softer knee sales [5][7] - Trauma and extremities grew 7.5%, with strong contributions from Evos plating system and Atos shoulder [8] - Advanced wound management grew 6%, with advanced wound care growing 1.1% and Bioactives up 12.2% [9][10] Market Data and Key Metrics Changes - US market grew 5.5%, while other established markets grew 3.9% and emerging markets grew 5.4% [5] - Excluding China, underlying revenue growth was 6.4%, with joint repair growth at 13% [3][9] - China headwinds are beginning to abate, with expectations of a gradual recovery [3][8] Company Strategy and Development Direction - Innovation remains central to growth, with over half of growth coming from products launched in the last five years [13][15] - The company is focused on cash and capital efficiency, expecting further margin expansion beyond 2025 [12][42] - Upcoming capital markets day will outline the next phase of growth and midterm priorities [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting revenue guidance for Q4, supported by new customer integrations and product placements [21][31] - The impact of Medicare reimbursement changes is anticipated to be a headwind for Advanced Wound Management sales in 2026 [10][41] - Management acknowledged the ongoing portfolio rationalization in US knees, which has led to some volume loss but remains a strategic focus [27][39] Other Important Information - The company launched several new products, including the Alevi Complete Care dressing and the Legion medial stabilized knee [14][15] - The company is committed to building a sustainable business in China, evaluating product lines for investment [43] Q&A Session Summary Question: Concerns about revenue guidance and Q4 performance - Management remains confident in Q4 revenue guidance, citing strong sales funnel and new customer integrations [21][31] Question: US knees performance and portfolio rationalization impact - Management acknowledged the gap between US knees and market performance, attributing it to ongoing portfolio rationalization [27][39] Question: Margin guidance and headwinds for 2026 - Management expects margin expansion despite headwinds from knees and hips, with specific guidance to be provided at the capital markets day [40][42] Question: Pricing trends and competitive landscape - Management noted a return to more normalized pricing levels in orthopedics, with expectations of continued competitive positioning [64][65] Question: Other recon performance and expectations for Q4 - Management expressed optimism about Q4 performance in other recon, citing strong placements and utilization [71]

Financial Data and Key Metrics Changes - Underlying revenue growth for Q3 2025 was 5%, consistent with H1 run rate, with reported revenue at $1.5 billion, reflecting a 6.3% increase due to a 130 basis point tailwind from foreign exchange [2][5] - Free cash flow guidance raised from over $600 million to around $750 million, driven by improved working capital discipline and operational efficiencies [3][11] Business Line Data and Key Metrics Changes - Orthopedics grew 4.1% on an underlying basis, with strong performance in hips in the US offsetting softer knee sales [5][6] - Trauma and extremities grew 7.5%, with notable contributions from the Evos plating system and Atos shoulder [7] - Advanced Wound Management grew 6%, with advanced wound care growing 1.1% and Bioactives up 12.2% [8][9] Market Data and Key Metrics Changes - US market grew 5.5%, while other established markets grew 3.9% and emerging markets grew 5.4% [5] - Excluding China, underlying revenue growth was 6.4%, with joint repair growth at 13% [3][8] Company Strategy and Development Direction - Innovation remains central to growth, with over half of growth coming from products launched in the last five years [12] - The company is focused on operational improvements and cash efficiency, with plans to present a new strategy at upcoming capital markets events [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting revenue guidance for Q4, citing a strong sales funnel and new customer integrations [20][30] - The company anticipates continued margin expansion beyond 2025, despite headwinds from tariffs and reimbursement changes [11][41] Other Important Information - The company launched several new products, including the Alevi Complete Care dressing and the Legion medial stabilized knee, which are expected to drive future growth [12][14] - Management acknowledged ongoing challenges in the US knee market but remains optimistic about future performance improvements [15][27] Q&A Session Summary Question: Concerns about revenue guidance and margin expectations - Management remains confident in Q4 revenue guidance, supported by new product launches and customer integrations, and expects to maintain margin guidance in the 19-20% range [20][30] Question: Impact of portfolio rationalization on US knees - Management acknowledged the gap between their performance and market growth in US knees, attributing it to ongoing portfolio rationalization, but expressed optimism for future improvements [27][28] Question: Key factors affecting margins in 2026 - Management outlined several headwinds for 2026, including tariffs and pricing pressures, but remains confident in achieving margin expansion through operational efficiencies [41][42] Question: Future of the China business - The company is committed to building a sustainable business in China and will evaluate product lines for investment based on profitability [42] Question: Expectations for Q4 performance in other recon - Management expects a rebound in other recon performance in Q4, driven by strong placements and utilization rates [75]

Group 1 - AEON, a Japanese retail group, plans to establish a sales partnership with BYD by 2025, setting up sales points for BYD electric vehicles in approximately 30 commercial facilities and department stores across Japan [1] - AEON will implement pricing strategies, including discounts and promotional incentives, allowing consumers to purchase BYD electric vehicles starting at around 2 million yen (approximately 94,000 RMB) [1] - AEON aims to achieve independent import and sales of BYD electric vehicles in the future, currently managing 164 shopping centers in Japan [1] Group 2 - The collaboration between BYD and AEON may disrupt the traditional Japanese automotive distribution market, which has been dominated by local manufacturers and dealerships [2] - AEON operates around 2,500 electric vehicle charging stations across its 374 stores in Japan, potentially addressing infrastructure limitations for electric vehicles [2] - In the first half of the 2025 fiscal year, Japanese domestic sales of pure electric passenger vehicles were approximately 28,500 units, reflecting a year-on-year growth of 3%, but still representing only about 1% of total new car sales [2] Group 3 - In September, BYD achieved a record sales figure in Japan, selling 802 units, which is a year-on-year increase of approximately three times, capturing about 20% of the country's imported pure electric vehicle market [3] - BYD plans to launch a new pure electric light vehicle specifically designed for the Japanese market in 2026 [3] - Despite BYD's growth, Japanese domestic electric vehicles, such as Nissan's Sakura and Leaf, continue to lead in sales within the electric vehicle market [3]

Core Viewpoint - Tesla's recent price adjustments for the "simplified" Model 3 and Model Y have drawn attention, although the new prices still exceed the promised $30,000 threshold for the mass market, indicating increased pressure on automakers due to the expiration of electric vehicle tax credits [1][2] Group 1: Price Adjustments - The price of Model Y has been reduced by 11% to $40,000, while Model 3's price has decreased from $39,000 to $37,000 [1] - Analysts believe these pricing changes enhance the likelihood of Tesla achieving its 16% delivery growth target by 2026 [1] Group 2: Competitive Landscape - The new pricing may pressure competing models priced between $30,000 and $35,000, such as Nissan Leaf, Hyundai Ioniq 5, and Ford Mustang Mach-E [1] - Analysts emphasize that the challenge for competitors like Hyundai, Ford, and Nissan lies not in pricing but in software capabilities, as Tesla's advantages in full self-driving technology and onboard computing continue to grow [1] Group 3: Market Reactions - Some analysts view Tesla's price cuts as a necessary step to stimulate demand post-tax credit expiration, but express disappointment over the limited price reduction of only $5,000 [1][2] - Tesla's stock rose by 1.29%, with a current market capitalization of $1.46 trillion, surpassing the combined market values of Toyota, Honda, General Motors, Ford, Nissan, and Stellantis [2]

Core Viewpoint - Nissan is discontinuing the Ariya electric SUV from the US market for the 2026 model year, influenced by a new 15% tariff on Japanese-built electric vehicles and a strategic shift towards the 2026 Leaf model [1][4][9]. Group 1: Decision to Halt Ariya - Nissan will stop importing the Ariya to the US, reallocating resources to optimize its electric vehicle portfolio [1]. - The company stated that the Ariya will still be available through existing dealer inventory, and current owners will continue to receive service and warranty coverage [2]. - No decision has been made regarding the potential return of the Ariya for the 2027 model year [2][8]. Group 2: Sales Performance and Tariff Impact - In 2024, Nissan sold fewer than 20,000 units of the Ariya, which was a 47% increase from the previous year, but deemed insufficient to justify its market presence [3][4]. - The Ariya is assembled in Japan, making it subject to the new 15% tariff under the US–Japan trade framework [3][9]. - Analysts suggest that the combination of the tariff, declining EV demand, and Nissan's financial challenges made continuing the Ariya program difficult [4]. Group 3: Broader Context and Future Considerations - Nissan has reduced production of the new Leaf due to battery procurement issues, impacting its overall electric vehicle strategy [7]. - The future of the Ariya may depend on Nissan's financial health and the status of tariffs [8]. - A recent US-Japan agreement includes a baseline 15% tariff on Japanese imports, which could affect future vehicle pricing and sales strategies [9][10].