General Motors and Ford Set to Report Quarterly Results
General Motorsis scheduled to report quarterly results before market open on Tuesday, January 27, with a conference call scheduled for 8:30 am EST, while Fordis scheduled to report after market close on Tuesday, February 10, with a conference call scheduled for 5:00 pm EST. What to watch for:GM SALES:In January, General Motors reported a 6% increase in U.S. sales for the full year, with growth across multiple areas of GM's portfolio. All four GM brands grew in 2025, the company said. Sales in Q4 declined 7% compared to the same period in 2024. In 2025, GM sold nearly 700,000 Chevrolet and Buick models with starting prices below $30,000 and GM Envolve sales to fleet and commercial customers grew 8% in 2025. "Demand for our brands and products is strong at every price point, and we are well-positioned to build on this momentum in the year ahead," said Duncan Aldred, SVP and president of North America. The company also announced that new energy vehicle sales reached nearly 1M units in China in 2025, accounting for more than half of its total sales in the country. In 2025, GM achieved growth in both retail sales and market share in China. The company and its joint ventures delivered nearly 1.9< vehicles, up 2.3% from a year earlier.GM GUIDANCE:Along with its Q3 earnings, the company guided to a FY25 EPS view of $9.75-$10.50. Consensus, which stood at $9.45 at the time, has since risen to $10.39. The company also forecast FY25 EBIT-adjusted view of $12B-$13B and FY25 gross tariff impact of $3.5B-$4.5B.GM PARTNERSHIPS, INITIATIVES:In October, Lithium Americasannounced that together with GM, it reached a non-binding agreement in principle with the U.S. Department of Energy to advance the first draw of $435M on the previously announced $2.26B DOE loan. Lithium Americas also announced the finalization of the parties' agreement on certain amendments to the company's loan for financing the construction of the processing facilities at Thacker Pass. Also in October, GM announced in a regulatory filing that the company was taking charges of $1.6B on a strategic realignment of its electric vehicle capacity. In January, the company announced that it expects an additional $6B in charges related to the review of EV capacity. GM also announced in October an end to its next-generation hydrogen fuel cell development program. The company also announced that driver-assistance and Gemini AI was coming to vehicles and unveiled a centralized vehicle computing platform. In November, GM made a $250M commitment to Parma Metal Center and in December, the company announced Apple Musicwas coming natively to GM vehicles.ANALYST VIEW:Barclays raised the firm's price target on GM to $100 from $85 and kept an Overweight rating on the shares. The firm adjusted targets in the autos and mobility group as part of a Q4 preview. Barclays continue to prefer the car makers, saying they are benefiting from "healthy" production rates and reduced electric vehicle losses.Meanwhile, JPMorgan raised the firm's price target on GM to $100 from $85 and kept an Overweight rating on the shares. The firm upped 2026 estimates for Ford and G< well ahead of consensus to reflect stronger global production. It sees "billion dollar tailwinds" from reduced emissions compliance costs. JPMorgan expects GM and Ford's 2026 guidance to benefit from eliminated penalties associated with incomplete compliance with U.S. federal corporate average fuel economy and greenhouse gas.Additionally, Goldman Sachs raised the firm's price target on GM to $98 from $93 and kept a Buy rating on the shares. The updated price target reflects recent auto sales datapoints and comments surrounding 2026 growth over market expectations from several suppliers at conferences during the quarter, the analyst said.FORD SALES:In November, Ford reported October U.S. total vehicle sales of 175,584, up from 172,756 last year, or up 1.6% year-over-year. The company reported October U.S. Internal Combustion sales of 153,377, compared to 148,268 last year, up 3.4% and October U.S. total electrified vehicle sales of 22,207, down from 24,488 last year, or down 9.3% year-over-year. In December, Ford reported total U.S. vehicle sales of 164,925 in November, down 0.9% from the same month of last year. Total electrified vehicle sales of 20,548 were down 18.4% from last year, while internal combustion vehicle sales of 144,377 were up 2.2% year-over-year. In January, Ford reported Q4 U.S. sales up 2.7% to 545,216 vehicles. Ford's total sales for the year climbed 6% to 2,204,124 vehicles, with overall market share reaching 13.2%. In Q4, Ford sales were up 2.7%, again outperforming the industry, with market share increasing in Q4 by 0.9 percentage points. "This past year proved that Ford has the right product and powertrain offering for the lives of our customers," said Andrew Frick, president, Ford Blue and Model e. "We're growing share and beating the trend because we offer a great range of products, from accessible entry-level models to high-performance off-roaders."FORD GUIDANCE:Along with its Q3 results, Ford guided to FY25 adjusted EBIT of $6B-$6.5B. The company said, "Ford's underlying business is performing at the high end of the guidance range previously outlined in February, while absorbing a $1B net tariff headwind. Additionally, between 2025 and 2026, Ford expects the Novelis fire to be a headwind of $1B or less. Full-year 2025 guidance now reflects: A 2025 adjusted EBIT headwind of $1.5B to $2B and an adjusted free cash flow headwind of about $2B to $3B in the fourth quarter due to the Novelis fire. That Ford has line of sight to mitigate at least $1B of the Novelis-related adjusted EBIT headwind in 2026 and is working to improve the situation further."Ford and Novelis provided a November update following an additional fire incident at the Novelis Oswego aluminum plant. "The fire was swiftly contained and the plant was safely evacuated with no injuries to employees, contractors or first responders. As of this morning, the cold mill and heat treatment operations at the Novelis Oswego plant are back up and running…Ford reaffirms its full-year 2025 adjusted EBIT guidance of $6B-$6.5B and full year adjusted free cash flow of $2B-$3B. Novelis and Ford will continue to provide updates as further details become available," Ford stated.Additionally in December, Ford reported it would be taking a $19.5B write down. with the majority in Q4. on EV investments and raised its FY25 EBIT view to around $7B. The company stated, "The company is shifting to higher-return opportunities, including leveraging its U.S. manufacturing footprint to add trucks and vans to its lineup and launch a new, high-growth battery energy storage business. As part of these actions, Ford no longer plans to produce select larger electric vehicles where the business case has eroded due to lower-than-expected demand, high costs and regulatory changes. This approach prioritizes affordability, choice and profits. Ford will expand powertrain choice - including a range of hybrids and extended-range electric propulsion - while focusing its pure electric vehicle development on its flexible Universal EV Platform for smaller, affordable models. These actions provide a path to profitability in Model e by 2029, targeting annual improvements beginning in 2026. The actions will also improve profits in Ford Blue and Ford Pro over time with early signs of benefits in 2026."FORD PARTNERSHIPS, INITIATIVES:In October, Ford announced plans to increase F-150 and F-Series Super Duty truck production. In November, the company announced expanded availability of BlueCruise and plans to sell used vehicles on Amazon Autos. In December, Ford announced the next phase of its European strategy and reported plans to jointly develop two EVs as well as light commercial vehicles with Renault. Additionally in December, SK On announced it decided to end its U.S. battery joint venture with Ford. The company also announced in December that its next-generation F-150 Lightning would be hybrid and the company was launching a battery energy storage business.ANALYST VIEW:Barclays raised the firm's price target on Ford to $13 from $12 and kept an Equal Weight rating on the shares. The firm adjusted targets in the autos and mobility group as part of a Q4 preview.Meanwhile, JPMorgan analyst raised the firm's price target on Ford to $15 from $14 and kept an Overweight rating on the shares. The firm upped 2026 estimates for Ford and GM well ahead of consensus to reflect stronger global production.Additionally, TD Cowen raised the firm's price target on Ford to $15 from $13 and kept a Hold rating on the shares as part of a Q4 preview. The firm expects Ford's 2026 guidance to "embed some degree of conservatism" relative to its estimates, which are above consensus. Part of the stock reaction will likely hinge on the 2026 Model-e loss outlook, the analyst said.
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General Motors Reaffirms Commitment to Silverado EV
- Production Commitment: GM spokesperson Shad Balch emphasized that despite the Trump administration rolling back the EPA's 2009 Endangerment Finding, there are no plans to discontinue the Chevrolet Silverado EV, demonstrating the company's strong confidence in the electric pickup market.
- Marketing Investment: Balch revealed that GM is offering additional trims for the Silverado EV and increasing marketing efforts to enhance the model's market visibility and sales potential, aiming to strengthen brand competitiveness.
- Production Stability: Balch clearly stated that there are currently no plans to cut production of the Silverado EV, a decision that helps ensure supply chain stability and meet the growing demand for electric vehicles, thereby boosting the company's overall performance.
- Stock Performance: On February 13, GM's stock price rose by 1.44% to $81.08, although it slightly declined by 0.07% to $81.02 in after-hours trading, reflecting the market's positive response to its electric vehicle strategy.
Tesla's $20 Billion Investment Reshapes Transportation Market
- Surge in Capital Expenditure: Tesla plans to invest over $20 billion in capital spending by 2026, more than double last year's expenditure, highlighting its ambitious vision for the electric vehicle market, especially as competitors scale back their investments.
- Diversified Factory Investments: Among the six new factories, three are dedicated to electric vehicle production, including a lithium refinery and a low-cost lithium iron phosphate battery factory, directly supporting EV growth and strengthening Tesla's market position.
- Autonomous Driving Vision: CEO Elon Musk clearly stated in the recent earnings call that only 1% to 5% of miles driven will be by humans in the future, indicating Tesla's leadership in autonomous driving, with expectations that Cybercab production will surpass all other models combined.
- Significant Market Potential: The Cybercab is expected to cost under $30,000 and have a significantly lower cost per mile than traditional taxis; if regulatory approval is achieved, Tesla's robotaxi could present a compelling market opportunity, further solidifying its leadership in the EV sector.
Analysis of Current Electric Vehicle Market Trends
- Sales Growth: Global EV sales surged 21% in 2025, with a notable 33% increase in Europe, indicating strong demand that could enhance market share for related companies.
- China's Market Dominance: EV sales in China grew by 19%, with Tesla holding a 4.4% market share, surpassing Nio, which highlights increasing competitive pressure on Nio in a rapidly consolidating market.
- Challenges for Nio: Nio reported a 15% year-over-year increase in vehicle sales in the latest quarter, yet its net losses reached $488.9 million, indicating a precarious position amid market consolidation and a lack of profitability.
- Rivian's Market Opportunity: Rivian ranks sixth in the U.S. market, achieving an 8% revenue growth in 2025, and while still unprofitable, it is approaching profitability faster than Nio, suggesting a stronger competitive position.
Tesla's Diversification Strategy Faces Challenges
- Stagnant EV Business: Despite a reduction in average production costs, Tesla's net profit per vehicle fell to just $4,000 by the end of 2023, significantly lower than the $10,000 achieved in 2022, indicating the adverse impact of intensified competition on profitability.
- New Business Ventures: Tesla plans to launch household robots priced between $20,000 and $30,000 by the end of 2027, a move that may be driven by the stagnation of its EV business, highlighting the company's urgent need for diversification.
- Intensified Market Competition: Global EV sales reached 20.7 million in 2023, a 21% increase, with competitors like BYD and Volkswagen capturing significant market share, suggesting that Tesla's dominance in the EV market is being challenged.
- Uncertain Future Outlook: While Tesla's prospects in autonomous driving and solar energy are promising, market skepticism remains regarding the profitability and timelines of its new ventures, as analysts generally value TSLA stock at only $422.09, reflecting investor uncertainty about future growth.
Tesla's Diversification Strategy Faces Challenges
- New Business Expansion: Tesla plans to launch household robots priced between $20,000 and $30,000 by the end of 2027, although the company's leadership in electric vehicles faces competitive pressures, and the profitability of these new ventures may take longer to materialize.
- Declining EV Profitability: As of the end of last year, Tesla's net profit per vehicle was only $4,000, significantly down from $10,000 in 2022, indicating severe challenges to profitability amid the ongoing EV price wars.
- Intensifying Market Competition: Global EV sales reached 20.7 million units in 2023, a 21% increase, with Tesla losing market share to competitors like BYD and Volkswagen, undermining its position in a rapidly growing market.
- Investor Confidence Shaken: Despite Musk's continued optimism about the future, analysts have set a target price of only $422.09 for Tesla stock, reflecting concerns about the outlook for its EV business, leading investors to adopt a cautious stance regarding the company's diversification strategy.
Ford's Turnaround Strategy in Europe
- Market Challenges: Ford faces weak passenger vehicle demand, slower-than-expected EV adoption, and fierce competition from Chinese EV makers, which threaten its market share and profitability in Europe.
- Profitability Volatility: Although Ford returned to profitability through restructuring in late 2020, its subsequent quarterly performance has been unstable, compounded by the cancellation of popular models like the Fiesta and Focus, increasing labor and energy costs.
- Three-Pronged Strategy: Ford's plan to tackle European challenges includes focusing on its higher-margin Ford Pro commercial vehicle division, refreshing its passenger vehicle lineup, and improving operational efficiencies, which are crucial for its business turnaround.
- Partnership Potential with Geely: Ford's potential collaboration with China's Geely, leveraging its excess production capacity to manufacture vehicles for Geely, could help avoid high tariffs and enhance Ford's competitiveness through shared technology, positioning it better in the EV market.
General Motors Reaffirms Commitment to Silverado EV
- Production Commitment: GM spokesperson Shad Balch emphasized that despite the Trump administration rolling back the EPA's 2009 Endangerment Finding, there are no plans to discontinue the Chevrolet Silverado EV, demonstrating the company's strong confidence in the electric pickup market.
- Marketing Investment: Balch revealed that GM is offering additional trims for the Silverado EV and increasing marketing efforts to enhance the model's market visibility and sales potential, aiming to strengthen brand competitiveness.
- Production Stability: Balch clearly stated that there are currently no plans to cut production of the Silverado EV, a decision that helps ensure supply chain stability and meet the growing demand for electric vehicles, thereby boosting the company's overall performance.
- Stock Performance: On February 13, GM's stock price rose by 1.44% to $81.08, although it slightly declined by 0.07% to $81.02 in after-hours trading, reflecting the market's positive response to its electric vehicle strategy.
Tesla's $20 Billion Investment Reshapes Transportation Market
- Surge in Capital Expenditure: Tesla plans to invest over $20 billion in capital spending by 2026, more than double last year's expenditure, highlighting its ambitious vision for the electric vehicle market, especially as competitors scale back their investments.
- Diversified Factory Investments: Among the six new factories, three are dedicated to electric vehicle production, including a lithium refinery and a low-cost lithium iron phosphate battery factory, directly supporting EV growth and strengthening Tesla's market position.
- Autonomous Driving Vision: CEO Elon Musk clearly stated in the recent earnings call that only 1% to 5% of miles driven will be by humans in the future, indicating Tesla's leadership in autonomous driving, with expectations that Cybercab production will surpass all other models combined.
- Significant Market Potential: The Cybercab is expected to cost under $30,000 and have a significantly lower cost per mile than traditional taxis; if regulatory approval is achieved, Tesla's robotaxi could present a compelling market opportunity, further solidifying its leadership in the EV sector.
Analysis of Current Electric Vehicle Market Trends
- Sales Growth: Global EV sales surged 21% in 2025, with a notable 33% increase in Europe, indicating strong demand that could enhance market share for related companies.
- China's Market Dominance: EV sales in China grew by 19%, with Tesla holding a 4.4% market share, surpassing Nio, which highlights increasing competitive pressure on Nio in a rapidly consolidating market.
- Challenges for Nio: Nio reported a 15% year-over-year increase in vehicle sales in the latest quarter, yet its net losses reached $488.9 million, indicating a precarious position amid market consolidation and a lack of profitability.
- Rivian's Market Opportunity: Rivian ranks sixth in the U.S. market, achieving an 8% revenue growth in 2025, and while still unprofitable, it is approaching profitability faster than Nio, suggesting a stronger competitive position.
Tesla's Diversification Strategy Faces Challenges
- Stagnant EV Business: Despite a reduction in average production costs, Tesla's net profit per vehicle fell to just $4,000 by the end of 2023, significantly lower than the $10,000 achieved in 2022, indicating the adverse impact of intensified competition on profitability.
- New Business Ventures: Tesla plans to launch household robots priced between $20,000 and $30,000 by the end of 2027, a move that may be driven by the stagnation of its EV business, highlighting the company's urgent need for diversification.
- Intensified Market Competition: Global EV sales reached 20.7 million in 2023, a 21% increase, with competitors like BYD and Volkswagen capturing significant market share, suggesting that Tesla's dominance in the EV market is being challenged.
- Uncertain Future Outlook: While Tesla's prospects in autonomous driving and solar energy are promising, market skepticism remains regarding the profitability and timelines of its new ventures, as analysts generally value TSLA stock at only $422.09, reflecting investor uncertainty about future growth.
Tesla's Diversification Strategy Faces Challenges
- New Business Expansion: Tesla plans to launch household robots priced between $20,000 and $30,000 by the end of 2027, although the company's leadership in electric vehicles faces competitive pressures, and the profitability of these new ventures may take longer to materialize.
- Declining EV Profitability: As of the end of last year, Tesla's net profit per vehicle was only $4,000, significantly down from $10,000 in 2022, indicating severe challenges to profitability amid the ongoing EV price wars.
- Intensifying Market Competition: Global EV sales reached 20.7 million units in 2023, a 21% increase, with Tesla losing market share to competitors like BYD and Volkswagen, undermining its position in a rapidly growing market.
- Investor Confidence Shaken: Despite Musk's continued optimism about the future, analysts have set a target price of only $422.09 for Tesla stock, reflecting concerns about the outlook for its EV business, leading investors to adopt a cautious stance regarding the company's diversification strategy.
Ford's Turnaround Strategy in Europe
- Market Challenges: Ford faces weak passenger vehicle demand, slower-than-expected EV adoption, and fierce competition from Chinese EV makers, which threaten its market share and profitability in Europe.
- Profitability Volatility: Although Ford returned to profitability through restructuring in late 2020, its subsequent quarterly performance has been unstable, compounded by the cancellation of popular models like the Fiesta and Focus, increasing labor and energy costs.
- Three-Pronged Strategy: Ford's plan to tackle European challenges includes focusing on its higher-margin Ford Pro commercial vehicle division, refreshing its passenger vehicle lineup, and improving operational efficiencies, which are crucial for its business turnaround.
- Partnership Potential with Geely: Ford's potential collaboration with China's Geely, leveraging its excess production capacity to manufacture vehicles for Geely, could help avoid high tariffs and enhance Ford's competitiveness through shared technology, positioning it better in the EV market.
