Latest news with #DanielRoeska
Yahoo
26-05-2025
- Automotive
- Yahoo
Bernstein Ups Ford (F) Price Target, Cautions on H2 Risks
On May 24, Bernstein SocGen Group maintained its Underperform rating for Ford Motor Company (NYSE:F) but revised its price target from $7 to $8.30. Daniel Roeska, the firm's analyst, cautioned about possible difficulties in the second half of 2025 but pointed to the year's strong start as a reason for optimism. According to Roeska, Ford's strong first-quarter performance in 2025 and probable continued strength in the second quarter are encouraging indicators. He did, however, warn that production reductions and tariff challenges are signs that Ford Motor Company (NYSE:F) may be bracing for a second-half decline. That said, Roeska pointed out that Ford's plans to minimize the effects of tariffs, alongside the robust performance of Ford Credit, might give the company the possibility of weathering the storm. Knowing this, Bernstein SocGen Group lowered Ford's 2026 earnings per share prediction by 5.8% to $1.66. While we acknowledge the potential of F to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than F and that has 100x upside potential, check out our report about the cheapest AI stock. Read More: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-05-2025
- Automotive
- Yahoo
Bernstein Ups Ford (F) Price Target, Cautions on H2 Risks
On May 24, Bernstein SocGen Group maintained its Underperform rating for Ford Motor Company (NYSE:F) but revised its price target from $7 to $8.30. Daniel Roeska, the firm's analyst, cautioned about possible difficulties in the second half of 2025 but pointed to the year's strong start as a reason for optimism. According to Roeska, Ford's strong first-quarter performance in 2025 and probable continued strength in the second quarter are encouraging indicators. He did, however, warn that production reductions and tariff challenges are signs that Ford Motor Company (NYSE:F) may be bracing for a second-half decline. That said, Roeska pointed out that Ford's plans to minimize the effects of tariffs, alongside the robust performance of Ford Credit, might give the company the possibility of weathering the storm. Knowing this, Bernstein SocGen Group lowered Ford's 2026 earnings per share prediction by 5.8% to $1.66. While we acknowledge the potential of F to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than F and that has 100x upside potential, check out our report about the cheapest AI stock. Read More: and . Disclosure: None.
Yahoo
26-04-2025
- Automotive
- Yahoo
2 Electric Vehicle Stocks With Something to Prove
It's been a wild ride for investors in Rivian Automotive (NASDAQ: RIVN) and Nio (NYSE: NIO), filled with ups and downs. Both companies have previously had solid momentum behind them, and faced headwinds, setbacks, or disruptions. Both also still have much to prove to investors. One analyst recently cast doubt on Rivian's gross profit, and Nio will need to show that it can offset the effects of China's brutal price war. Let's dive into both electric vehicle (EV) makers below and see what may lay ahead for them. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » One of the biggest takeaways from Rivian's fourth quarter was that it achieved $170 million in gross profit, which is simply total revenue minus the cost of revenue. It was a sizable win compared to analysts' estimates of $49 million in gross profit and was the company's first quarterly gross profit in its short history. While the company certainly made progress -- Rivian's cost of revenue dropped 18.6% while revenue spiked 31.9% higher -- there was a small drawback. That came in the form of sharply higher sales of regulatory credits, which added $299 million in revenue during the fourth quarter. Regulatory credits are awarded to automakers that produce and sell electric vehicles, and the excess can be sold to other automakers that need the credits to meet emissions standards. Rivian expects sales of regulatory credits to be similar for 2025 and guided for a positive gross profit for the full-year. Doing so would be a big step toward proving to investors that it has a path to profitability. At least one analyst disagrees with Rivian's management. Bernstein's Daniel Roeska warned that the company may fail to reach that goal until 2027. It's true that Rivian will face challenges. Its delivery growth has stalled, so much of the automaker's gross profit improvement will come from a reduction in revenue costs. The company lacks a revenue catalyst, with the R2 not set to hit the roads until the first half of 2026. Gross profit will be something that analysts and investors both focus on throughout 2025, and it would go a long way if Rivian could achieve its full-year positive gross profit. Meanwhile, Nio is expected to see strong momentum throughout 2025, driven by two new brands, Onvo and Firefly. In fact, during Q4, the company's deliveries broke down to 52,760 from its premium Nio brand and 19,929 from its Onvo brand. As deliveries of both Onvo and Firefly accelerate it is expected to drive strong revenue and delivery growth, but that didn't materialize quite as expected during Q4 with Firefly only having just launched. Nio's Q4 deliveries were up 45% compared to the prior year, but its total revenue jumped a much lesser 15.2%, suggesting that the exhaustingly brutal price war in China is having a large effect on its pricing power. Nio's first-quarter deliveries were in line with management's guidance at 42,094. But investors must remember the disappointment from that guidance, as it fell far short of analysts' original expectation of 65,000 in deliveries. Over the past three years, Rivian and Nio have shed 70% and 82% of their value, respectively, and both certainly have much to prove to investors on their way toward profitability. It won't happen overnight, but if Rivian can achieve full-year 2025 gross profit, perhaps even with less reliance on regulatory credit sales, and Nio can offset the weight of China's price war, both will set themselves up for a much brighter future. Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $652,319!* Now, it's worth noting Stock Advisor's total average return is 859% — a market-crushing outperformance compared to 158% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2 Electric Vehicle Stocks With Something to Prove was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
21-04-2025
- Automotive
- Yahoo
Why Rivian Could Tank Another 50%
Rivian Automotive (NASDAQ: RIVN) exited 2023 with as much or more momentum than its electric vehicle (EV) start-up peers, but that has slowly eroded through today. Now throw in potential tariffs because Rivian imports key parts for the vehicles it produces in the U.S., and the bears are becoming louder. That includes Bernstein analyst Daniel Roeska and his team, which had quite a bit to say this week. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The firm maintained its underperform rating and $6.10 price target, which implies a near 50% drop from Wednesday's closing price of $11.49 per share, citing growing tariff effects and financial headwinds. Investors might be wondering how Rivian is affected by tariffs since it produces all of its vehicles in the U.S., but the key is that the automaker imports crucial components such as batteries from South Korea and China. As things currently stand, the Trump administration is set to implement a 25% tariff on imports of key auto parts in May. The analyst team also cut its 2025 delivery forecast to 37,000 units, which is down 20% from the middle of Rivian's current guidance. This point is probably the least surprising, and looking at the graph below, you can see the recent softness in deliveries. Unfortunately for Rivian investors, there isn't a known catalyst in 2025, and the lower-priced R2 can't come soon enough in 2026 to provide a spark in deliveries and revenue. When it came to the bear case, the Bernstein analysts didn't hold back: "We expect Rivian to discontinue its Lithium Iron Phosphate (LFP) variants, downgrade volume and [guidance for earnings before interest and taxes], and be forced to consider raising fresh equity." The team now expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach negative $2.2 billion, which is 17% worse than the company's current forecast. The bear case extended beyond financial metrics with the team noting concerns about the company's two significant victories: the joint venture with Volkswagen, valued up to $5.8 billion, and the Department of Energy (DOE) commitment for a $6.6 billion loan to help fund its upcoming Georgia plant. More specifically, the team has doubts about Rivian achieving two nonconsecutive quarters of $50 million in gross profit, or two consecutive quarters of gross profit. Management said that was unlikely to happen during the first half of 2025, and is not guaranteed anytime in 2025 although its fourth quarter satisfied half of the $50 million in gross profit milestone. The milestone is tied to a $1 billion chunk of Volkswagen's potential $5.8 billion investment, so it's a big deal (a deeper dive on this can be found here). When it comes to the DOE loan, there is a potential for issues as the company's financials deteriorate. If the numbers suggest an unreasonable prospect of repayment, it could delay much-needed funding for its Georgia plant, which will produce next-generation vehicles. It's true, the bearish note and near 50% lower price target sound pretty bad for Rivian investors, but it's important not to panic. As things sit currently, the company is on track to reach the full potential of Volkswagen's joint venture, and the DOE loan is still on its way. Furthermore, unless its financials deteriorate faster than expected, the company should have funding to reach production of its R2, which the EV maker needs to be a hit with consumers. This just serves as a reminder that it's important to look at the other side of the coin when analyzing your investments, even if it's negative. Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $524,747!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $622,041!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 153% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 14, 2025 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy. Why Rivian Could Tank Another 50% was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
20-04-2025
- Automotive
- Yahoo
Is XPeng Inc. (XPEV) Among the Best EV Stocks To Buy in 2025?
We recently published a list of 12 Best EV Stocks To Buy in 2025. In this article, we are going to take a look at where XPeng Inc. (NYSE:XPEV) stands against other best EV stocks to buy in 2025. Electric cars, often known as electric vehicles or EVs, are automobiles powered by electricity instead of gas. Electric car stocks are comprised of companies that primarily manufacture electric vehicles. Firms that make components for electric vehicles, such as batteries or autonomous driving systems, are also regarded as part of the electric vehicle industry. President Trump's 25% tariffs on imported automobiles have officially come into force, affecting roughly half of the US auto industry. According to S&P Global Mobility estimates, 46% of the 16 million automobiles sold in the United States in 2024 were not produced domestically. The policy also includes tariffs on specified vehicle parts, including engines and transmissions, which will go into effect on May 3. Wall Street analysts and investors have been skeptical of the tariffs, which some say might reduce business earnings and plunge the automobile industry into a recession. Bernstein analyst Daniel Roeska stated in a recent note to investors: 'A 25% on automotive imports lasting beyond four to six weeks would likely have a chilling effect on the entire sector as [automakers] need to grapple with significant impact to the bottom line.' Wall Street analysts believe that automakers' and suppliers' equities will remain volatile in the near term. The most vulnerable businesses are those with high import ratios. Several companies saw more than 60% of their U.S. sales in 2024 come from vehicles manufactured outside of the United States. Meanwhile, companies with all-U.S. final assembly lines and minimal dependence on imports, especially in the EV industry, are projected to be more secure. In the first quarter, U.S. auto sales exceeded industry forecasts by a wide margin as buyers rushed to purchase new cars before the tariffs went into effect, which many believe will raise car prices. According to S&P Global Mobility's tariff analysis, the costs of importing vehicles, auto manufacturing in the US, and consumer vehicle costs will all rise. Analysts warn that if tariffs are completely implemented, typical new car prices, which are currently around $48,000, might rise by up to $10,000. Lower-margin, entry-level vehicles are more vulnerable to price increases or discontinuation since they are often sourced from low-cost countries and are prone to margin compression under the new tariff regime. Specifically, China's car exports are under strain as US tariff hikes impact major overseas markets. Cui Dongshu, secretary general of the China Passenger Car Association (CPCA), stated: 'The abrupt hike in U.S. tariffs will have a disastrous impact on economies such as Southeast Asia, and thus our exports to these markets will be impacted more than expected.' March exports dipped 8% year on year, following a rise of 11% in February. Joint ventures and luxury brands suffered a 45% decline, exporting only 47,000 units. Exports from Shanghai-based EV facilities fell 82.4% in March to 4,701 units, while first-quarter exports fell 56.9% to 38,147 vehicles. The China Passenger Car Association fears that Southeast Asia, which is significantly touched by new US tariffs, may witness a decline in demand. Export growth was originally projected to slow to 10% in 2025, down from 25% in 2024, but this could potentially fall. Domestic sales surged by 14.4% to 1.97 million units in March and 6.1% to 5.18 million in the first quarter. A close-up of a luxury electric sports sedan, its sleek body reflecting the energy of progress. We sifted through EV ETFs and online rankings to form an initial list of the 20 Best EV stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 1,009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Number of Hedge Fund Holders: 17 XPeng Inc. (NYSE:XPEV) is China's leading electric vehicle manufacturer, focusing on the midrange to high-end category and tech-savvy clientele. It is mass-producing eight pure electric models: the G3/G3i compact sport utility vehicle, or SUV; the P7 midsize sedan; the P5 compact sedan; the G9 midsize SUV; the G6 compact SUV; the X9 multipurpose vehicle; and the Mona 03 compact sedan. Retail costs for the present model portfolio range from CNY 120,000 to CNY 420,000 for popular trims with a driving range of around 460-700 km. The firm intends to launch at least ten new vehicles for its new model pipeline in 2025-27. The stock grew by more than 71.5% YTD, making it among the Best EV Stocks. XPeng Inc. (NYSE:XPEV) is on track to become the world's first mass producer of flying automobiles by 2026, according to its innovative 'land aircraft carrier' idea, which combines a six-wheeled van and a detachable passenger drone. This innovation allows consumers to drive to a take-off spot, detach the drone, and continue their journey airborne, reducing travel time and increasing accessibility. The company exhibited its flying automobile at the 2024 Zhuhai Airshow, earning over 3,000 intended orders. By early 2026, a new facility will produce 10,000 units a year, putting the firm at the forefront of this revolutionary industry. Barclays increased its price objective for XPeng Inc. (NYSE:XPEV) to $20 from $7. According to the analyst, the company's vehicle deliveries in Q4 and so far in Q1 are more than three times what was seen in the first half of 2024. According to the business, its model update and new product launch momentum will be solid in 2025. However, Barclays believes the stock's price is 'stretched' following its recent surge. Overall, XPEV ranks 10th on our list of the 12 Best EV Stocks To Buy in 2025. While we acknowledge the potential of EV companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than XPEV but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
