Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power, and other products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as wholesale financing services to dealers. The Power Product and Other Businesses manufactures and sells power products, such as general purpose engines, lawn mowers, generators, water pumps, brush cutters, tillers, outboard marine engines, and snow throwers. This segment also offers HondaJet aircraft. The company also sells spare parts; and provides after-sale services through retail dealers directly, as well as through independent distributors and licensees. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.

Honda Motor Company демонстрирует смешанную фундаментальную картину. Хотя P/E (9.80) и другие мультипликаторы, такие как P/S (0.37) и P/B (0.50), существенно ниже медианы отрасли, что может указывать на недооцененность, снижение мультипликаторов по годам вызывает беспокойство. Эффективность компании, измеряемая ROE (6.19) и ROA (2.62), также ниже медианных значений, что говорит о слабой рентабельности. Уровень долговой нагрузки (debt/equity 0.58) немного выше медианы, что добавляет риски. Однако компания демонстрирует стабильный рост выручки (TTM 36.84 млрд долларов), что является положительным фактором. Дивидендная доходность (2.13%) на уровне медианы и рост EPS также могут позитивно сказаться на оценке. В целом, несмотря на некоторые сильные стороны, слабые показатели рентабельности и высокая долговая нагрузка настораживают, что может приводить к корректировке ценового прогноза.

Honda Motor Company, Ltd.

Key Points
Mary Barra's nearly $30 million compensation in 2025 tops close Detroit rivals.
GM's targets and incentives are designed to align management and shareholder interests long term.
The automaker is performing well in nearly any metric, and its stock price has soared compared to mainstream rivals.
Like it or not, CEO pay in America continues to rise in comparison to the average employee. It's viewed as necessary to attract top talent in a highly competitive industry and to align shareholders' interests with management in creating long-term value through better product development, increasing market share, operational improvements to grow margins, and others.
Just recently news hit the markets that General Motors' (NYSE: GM) CEO, Mary Barra, was the highest-paid Big Three CEO, and one simple graph shows exactly why.
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How much are we talking?
Mary Barra earned $29.9 million last year, which was a total compensation package worth a modest 1.4% more than the prior year, according to a company filing. The modest increase was largely due to base salary and stock awards being nearly offset by nonequity incentive plan compensation falling 26% down to almost $5 million. Barra's base salary has been consistent at $2.1 million for a few years, and last year her stock awards jumped 11% to $21.6 million, the bulk of the compensation package.
Devin Wenig, chairman of GM's compensation committee, wrote in the SEC filing:
Together, the targets we set for our 2025 compensation program were intended to incentivize management to navigate uncertainty, continue to make great products that our customers love, and drive improved profitability. We believe that these clear and challenging targets rewarded management for delivering results that are fully aligned with our shareholder interests.
The one graph that can justify Barra's pay is a simple one, but it shows the progress GM has made in navigating uncertain trade policy, tariff changes, volatile electric vehicle (EV) demand, and many other speed bumps along the way.
GM has drastically outperformed rivals over the past three years, nearly tripling its closest competitor and trivializing Ford Motor Company's modest gain and/or Stellantis' 50% drop in value. It even greatly outpaced gains at Ferrari, which by many accounts remains one of the top auto investments out there.
Comparison check
Barra's compensation topped that of her closest rival, Ford Motor Company's CEO Jim Farley. Farley's total compensation jumped 11% last year to just over $27.5 million, which was the highest payout he has received since taking over the automaker in October 2020.
It's fair to note that Farley's payout increased at a time Ford reached only 64% of its earnings targets and rather reached the maximum of 200% of quality goals related to newer vehicles (with zero to three months in service).
That could have some investors scratching their heads, as Ford's number of recalls last year set historical records, and quality has been a consistent problem over recent years, even hindering earnings once in a while due to spikes in warranty costs.
For context, Ford obliterated the previous all-time record for the number of recalls, with 153 such campaigns, a record investors would rather leave in the dust. Ford's recalls covered nearly 13 million Ford and Lincoln vehicles, which was drastically larger than Toyota's and Stellantis' 3.2 million and 2.8 million vehicles, respectively. According to Ford, however, the company's internal metrics indicate the automaker is making significant progress on newer vehicles while mounting recalls are from older vehicles in the national fleet.
High-end CEO talent gets paid the big bucks; that much is clear. There are many ways to justify it, but it all comes down to aligning shareholder interests with management. GM has been performing incredibly well in just about any metric and has returned immense value with tens of billions in share buybacks in recent years. Investors might not like the high compensation packages, or perhaps it's a nonfactor, but GM's stock performance speaks for itself on the matter.
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Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool has positions in and recommends Ferrari. The Motley Fool recommends General Motors and Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Big Bucks Are Flowing at GM, and 1 Simple Graph Shows Why It's Worth Every Penny

U.S. legacy automaker Ford F kicked off 2026 on a weak footing, and the numbers tell a clear story. The legacy automaker reported first-quarter deliveries of 457,315 vehicles, down 9% year over year. That decline reflects a broader slowdown across the auto industry as economic uncertainty, affordability concerns, elevated vehicle prices and high borrowing costs weigh on demand. Ford’s arch rival General Motors GM and Japan’s auto biggie Honda HMC also saw their U.S. deliveries fall around 10% and 4%, respectively.
Ford’s challenges were particularly visible across key segments. Its electric vehicle (EV) business took a sharp hit, with sales plunging nearly 70% year over year to just 6,860 units, following the withdrawal of federal tax incentives and persistently high EV price tags. Meanwhile, its crown jewel — the F-Series trucks — saw volumes drop 16% to 159,901 units. Management partly attributed this to production disruptions linked to last year’s aluminum plant fires, which constrained supply. Even hybrids, which had been a strong growth driver, saw sales fall nearly 20%. With the average new vehicle price hovering near $50,000 and financing costs still elevated, affordability remains a key headwind.
With Ford shares down 12% year to date, the market is clearly factoring in near-term headwinds. But the key question now is— does this represent a buy on dip opportunity, or is it better to stay on the sidelines, or even exit? Let’s take a closer look.
F Lags GM, Outperforms Industry & HMC
Image Source: Zacks Investment Research
Challenges Grappling Ford
Ford is dealing with a series of operational and cost pressures that could keep near-term performance under strain. A key issue is the supply disruption caused by a fire at a Novelis aluminum plant. The impact already led to roughly $2 billion in losses last year, with another $1 billion expected this year. On top of that, Ford may incur $1.5–$2 billion in additional costs as it sources aluminum from alternative suppliers, adding further pressure on margins.
The company is also in the middle of reshaping its EV strategy, which isn’t coming cheap. It expects about $7 billion in special charges over the next two years, largely tied to strategy shifts and asset sales, with most of the cash impact likely in 2026.
Tariffs remain another drag. After a $2 billion hit last year, Ford still expects around $1 billion in tariff-related costs going forward, keeping cost pressures elevated.
Not All Doom & Gloom for Ford
Despite the near-term pressures, Ford still has a few strong levers working in its favor. Its commercial business, Ford Pro, continues to be a standout performer. Backed by solid order books and strong demand for Super Duty trucks, the segment is delivering healthy double-digit EBIT margins. Growth isn’t just coming from vehicles—software and services are playing a bigger role, with paid subscriptions rising 30% last year and profits from these streams expected to grow further this year.
Beyond autos, Ford is also building a presence in energy. Ford Energy is emerging as a strategic growth platform, with plans to invest $1.5 billion in 2026 and scale battery storage capacity significantly by 2027. This move not only diversifies revenues but also taps into a fast-growing, higher-margin market.
Financially, Ford remains on solid ground. It ended 2025 with about $50 billion in liquidity, including $29 billion in cash, giving it flexibility to navigate challenges while continuing to invest. Add to that a dividend yield of around 5%, and the stock still offers some income appeal.
Ford Valuation & Estimates Check
From a valuation perspective, Ford currently looks more attractive, especially on a price-to-sales basis. Ford trades at 0.26 forward sales, the same as Honda but better than General Motors’ 0.35. Ford currently carries a Value Score of A.
Ford P/S Vs. GM & HMC
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Ford’s 2026 sales and EPS implies year-over-year growth of 1% and 40%, respectively. The consensus mark for 2027 sales suggests a 1% year-over-year decline, while the EPS estimates point to 21% growth from projected 2026 levels. See how the EPS estimates have moved over the past 60 days.
Image Source: Zacks Investment Research
Final Take
Ford is clearly navigating a tough phase, with weak deliveries, rising costs and multiple near-term headwinds limiting upside. While valuation looks inexpensive and businesses like Ford Pro and Energy offer long-term promise, the path to a meaningful recovery remains uneven and backloaded.
This doesn’t seem like a compelling entry point for new investors yet. However, the company’s strong liquidity, income appeal and strategic pivots provide enough cushion to avoid a bearish call. For existing investors, staying put makes sense, but new money is better off waiting for clearer signs of demand recovery.
Ford currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Ford Q1 Deliveries Weak, Shares Down 12% YTD: Buy, Hold or Sell?

Volvo VLVLY is discontinuing the EX30 subcompact electric SUV in the United States after only two model years. The automaker will continue selling the vehicle in global markets, but production for the United States will end after the 2026 model year. Tariffs and a slowing U.S. EV market are key contributing factors.
The EX30 arrived in the United States for the 2025 model year as Volvo’s entry-level electric SUV and later added a Cross-Country trim for 2026. Volvo confirmed that 2026 will be the final model year for the EX30 in the United States, although the vehicle will remain available in other markets such as Canada and Mexico.
The EX30 was initially produced in China but was later supplied to the United States from Volvo’s factory in Ghent, Belgium, to avoid tariffs on Chinese-built EVs. Subsequent import tariffs, including a 25% tax on imported vehicles, increased cost pressures. The removal of federal EV tax credits reduced consumer incentives, leading to a sharp decline in monthly sales after the incentives expired.
Volvo sold roughly 5,400 EX30 units in 2025, a figure that trailed competitors, including Hyundai’s Ioniq 5 and Tesla’s Model 3, both of which recorded significantly higher sales during the same period.
The EX30 joins a growing list of electric vehicles being withdrawn as tariffs, production costs and shifting market conditions prompt automakers to revise their strategies.
Volvo’s decision aligns with broader industry developments, as several automakers reassess electric-vehicle programs amid regulatory changes and evolving consumer demand. Since automakers are no longer required to prioritize electric vehicle production, many companies are shifting attention toward gasoline and hybrid models that are more cost-effective and align with consumer demand.
VLVLY’s Zacks Rank
Volvo stock currently carries a Zacks Rank #3 (Hold).
Automakers Scale Back EV Plans Amid Weak Demand
Several major automakers have recently taken steps that reflect this broader industry shift, indicating shifts in priorities across the sector.
Honda Motor HMC announced that it will restructure its EV business and cancel three planned battery-electric models for the U.S. market. The move comes amid declining EV demand, as consumers shift to hybrid vehicles and recent policy changes reduce tax credits. The company stated that scaling back EV plans and writing down certain China operations could cost up to $15.7 billion. It expects its first annual loss in nearly 70 years, mainly due to supplier compensation costs.
General Motors GM will no longer produce electric vehicles at its Michigan Orion plant and will instead shift the facility to internal combustion engine models, including the Cadillac Escalade, Chevrolet Silverado and GMC Sierra pickups. Production is expected to begin in early 2027. The plant has remained idle since 2023 and was originally intended for electric versions of these vehicles. Plans were delayed multiple times due to weaker-than-expected demand for EVs in recent years. GM reported $7.2 billion in special charges in the fourth quarter of 2025, including $6 billion related to its EV strategy reset costs.
Stellantis STLA canceled its fully electric Ram pickup planned for a 2025 North America debut, citing slower demand for electric trucks. Instead, it will introduce a range-extended hybrid version, the Ram 1500 REV. The company revised its electrification strategy after a €22.2 billion ($26.5 billion) write-down tied to EV programs, reflecting scaled-back investments and adjusted product plans amid weaker-than-expected adoption and shifting market conditions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Volvo Scraps EX30 U.S. Sales Amid Broader EV Strategy Reset

Key Points
The conflict in Iran will impact global auto demand, but in different ways.
With a larger presence in the Middle East, Chinese automakers will likely feel the most impact.
Detroit automakers are more protected from that disruption, but could face challenges due to rising oil prices.
While there's never really a good time for a conflict like the war in Iran, as far as the automotive industry goes, it's awful timing. Consider that four automakers alone, Honda (NYSE: HMC), Ford Motor Company (NYSE: F), General Motors (NYSE: GM), and Stellantis (NYSE: STLA) have combined for a restructuring bill that is nearing $70 billion. The restructuring was designed to pivot away from electric vehicle (EV) strategies until the market was ready. Now, however, the Iran conflict is bringing up many questions for investors. Let's dive into a few, including how this will impact EV sales.
Will demand be dented?
The simple answer is yes, but exactly how, why, and where get much more complicated. Automotive sales in Iran will obviously be directly impacted, and regionally, it will be extremely challenging to distribute inventory and regulate supply chains amid the turmoil. Automakers with a strong presence in the Middle East will be most impacted, which currently means investors should be concerned primarily if they own Chinese automakers, which are expanding internationally, including in the Middle East, at a rapid pace.
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Domestic automakers in Detroit and elsewhere have a much smaller presence in the Middle East, if any, and are fairly protected from direct impacts. However, about one-fifth of the world's oil supply travels through the Strait of Hormuz, and Iranian officials have said they will not allow ships through the passage.
In the short term, this will mean higher gasoline prices, which will begin to push consumers to EVs and/or hybrids. Edmunds, an automotive research company, has already acknowledged that consumer research on its website for EVs and hybrids has picked up since March 2, days after strikes were launched on Iran. As gasoline prices only began rising sharply late last week, the impact is still in its early stages.
Thankfully for auto investors, it would take a prolonged period of conflict-driven gasoline price increases to truly change overall vehicle volume and demand. If the past can offer any insight, investors might look to June 2022, when Russia's invasion of Ukraine sent gasoline prices to a national average of $5.01 per gallon. That year, sales of highly profitable full-size pickups and SUVs declined 7.3% for the year, according to Automotive News.
One reason demand and sales mix will be resistant to change is simply that new-vehicle prices have continued to rise to new heights. Buying a vehicle because of a current event like the conflict in Iran means making a $50,000 vehicle decision due to a $5 gas dilemma. In the short and medium terms, consumers are much more likely to change their habits rather than make big-ticket purchases.
What it all means
Some investors are quick to predict the EV market could be reinvigorated fast, due in part to the Iran conflict, but the chances of a significant change in the near term are small. In 2022, Cox Automotive completed a study that found prices at roughly $6 per gallon to be the magical number that began pushing shoppers to consider switching to a hybrid or EV. Sustained higher gasoline prices absolutely do have impact; however, the odds are that these circumstances will push consumers toward more EV research and education, rather than purchase decisions.
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Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool recommends General Motors and Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Iran Conflict Could Capsize Auto Sales Globally. Which Stocks Are Safe?

(RTTNews) - Honda Motor Co. [HMC] has announced the cancellation of three planned electric vehicle projects for the U.S. market, contributing to the company's expected first annual loss since its public listing in 1957. This move highlights the growing pressure on traditional automakers as demand for electric vehicles slows in the U.S.
The company cites weaker-than-expected EV market expansion, reduced incentives, easing fossil fuel regulations, and tariff-related pressure on gasoline and hybrid profitability as factors behind this decision.
The shift away from these EV projects could cost Honda approximately 2.5 trillion yen or $15.7 billion over time, with a projected net loss of up to 630 billion yen or $3.94 billion for the current fiscal year.
Honda's announcement adds to a growing list of major automakers, including Ford Motor Company, General Motors, and Stellantis, that have taken multibillion-dollar charges related to delayed or canceled electric vehicle investments. Meanwhile, EV-focused startups like Rivian Automotive and Lucid Group are moving forward with more affordable product offerings.
Rivian recently opened orders for its R2 midsize SUV, starting at $57,990 for a performance version, with lower-priced trims scheduled for 2027. Lucid has also unveiled details of its upcoming Cosmos model, expected to cost less than $50,000 and offer 200 miles of range in just 14 minutes of charging.
Lucid plans to begin production of the Cosmos in Saudi Arabia this year, before ramping up U.S. manufacturing at its Arizona plant. Rivian's R2 is expected to be built in Normal, Illinois, and later supported by a future plant in Georgia.
Despite the weaker EV momentum in the U.S., several global automakers, including Toyota Motor Corporation, BMW, Volkswagen, and Hyundai Motor Company, continue to expand their electric offerings, particularly in Europe, Asia, and the Middle East.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Legacy Carmakers Retreat As EV Startups Launch Lower-Cost Models

A few years back, electric vehicles (EV) were one of the hottest themes in investing. Tesla’s success paved the way for many EV pure plays to go public, while legacy automakers committed billions of dollars to shift gears toward electric mobility. It was seen as the next big transformation in autos that would drive future revenue and earnings growth.
But the hype has faded. EVs have proved to be a costly transition, adoption has slowed, and things haven’t quite played out the way many had anticipated. In the United States, the EV market has struggled to hold momentum, partly due to weaker government support. The Trump administration rolled back incentives and regulations meant to boost EV sales. A key tax credit— worth up to $7,500 for qualifying EVs and plug-in hybrids— expired last September, removing an important demand driver. This has weakened the near-term case for EVs, even though they are still widely considered to be the future of transportation.
In response, many auto giants such as Ford F, General Motors GM and Stellantis STLA have reconsidered their EV strategies and taken write-off charges on related investments that no longer make business sense. The latest casualty is Honda HMC, which announced yesterday that it expects to take charges of up to $16 billion in the fiscal year ending March 31, 2026, as it pivots away from EVs.
Interestingly, Honda’s closest peer appears to have largely avoided this situation. That is the Japanese auto titan Toyota TM. The company did not go all in on EVs when the rest of the industry was aggressively investing in the technology, a decision that drew criticism at the time. But that cautious approach now seems to be paying off, as Toyota has not announced any EV write-downs so far.
Surprisingly though, the same automaker is now preparing to double down on EVs at a time when demand remains uncertain. Before discussing its strategy, let’s briefly look at how Ford, General Motors, Stellantis and Honda ended up taking write-offs on their EV bets.
$70B EV Reality Check for F, GM, STLA and HMC
Ford is moving away from its plans to manufacture large EVs. Instead of rolling out expensive, capital-heavy EVs into a reluctant market, Ford will now focus on profitable hybrids and internal combustion vehicles, while narrowing its EV efforts to smaller, lower-cost models. At the center of this shift is Ford’s new Universal EV Platform. Ford’s first vehicle built on the platform will be a midsize electric pickup. Notably, the company has even discontinued the fully electric version of its best-selling F-150 pickup. Ford announced $19.5 billion in EV-reset related charges.
General Motors also responded to slower-than-expected EV demand by selling its stake in the Ultium Cells Lansing plant and pivoting some assembly capacity from EVs back to internal combustion engine (ICE) vehicles. The company took $7.6 billion in charges in the second half of 2025 to reduce EV capacity.
Last month, Stellantis confirmed that it incurred around $25 billion in losses related to EV restructuring in the second half of 2025.Its RAM brand discontinued its planned all-electric pickup. The company is repositioning its North American strategy around conventional hybrids and extended-range electric vehicles (EREVs), which offer electric driving with longer range and reduce dependence on charging infrastructure.
Honda, as mentioned earlier, will be taking a massive hit of roughly $16 billion and is now projecting a full-year loss of 340-570 billion yen in fiscal 2026. It has canceled its highly anticipated 0 Series SUV and sedan just months before planned production, shifting its focus toward developing more competitive hybrid models while expanding its motorcycle business to strengthen profitability.
With that, the cumulative EV-restructuring losses for these four automakers come to roughly $70 billion.
Toyota Expands EV Push As Rivals Retreat
For years, Toyota prioritized hybrids over fully electric vehicles and was often viewed as one of the slowest legacy automakers to embrace BEV technology. Until the start of this year, the brand had only one EV offering in the U.S. market — the Toyota bZ.
That is now changing. Toyota is expanding its battery-electric lineup in the United States, with additions such as the Toyota Highlander EV, Toyota bZ Woodland and Toyota C???HR EV, per Autoblog. The new lineup spans multiple segments— from compact SUVs to more lifestyle-oriented crossovers— helping the company target a broader group of buyers.
Toyota views this expansion as a natural next step after the success of its hybrid strategy. Hybrid models have grown rapidly. That large base of hybrid customers could eventually become a pipeline of EV buyers.
The company is also trying to manage costs more efficiently. The company is also looking to control EV costs by leveraging its global operations and sourcing batteries from its new North Carolina plant. The Highlander EV will be Toyota’s first three-row electric SUV and also the first Toyota EV assembled in the United States.
At the same time, Toyota is rolling out updated EV models and offering pricing incentives to attract buyers now that the $7,500 federal EV tax credit is no longer available. With longer range, quicker charging and aggressive pricing, Toyota is betting its new EVs can appeal to mainstream buyers at a time when much of the industry is stepping back.
Last Word
In hindsight, Toyota’s reluctance to rush into EVs has saved it from the costly reset now facing several rivals. By holding back earlier, the company now appears to be in a better position to expand its EV push. Whether Toyota’s timing proves right remains to be seen, as EV demand is uneven and policy support uncertain. But if demand picks up again, that positioning could give Toyota an advantage as the next phase of the EV transition unfolds.
TM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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EV Write-Offs Rise, Yet One Auto Giant Is Doubling Down

Key Points
Tesla plans to invest over $20 billion by 2026, marking its largest investment yet.
Tesla is focusing on autonomous vehicles and robotaxis as the next step for transportation.
Recent data shows that Teslas are already a popular choice for rideshare drivers.
While the staggering capital spending commitments in artificial intelligence (AI) by hyperscalers like Alphabet and Amazon have captured investor attention, Tesla's (NASDAQ: TSLA) massive ramp in spending is arguably much more significant.
Not only is the $20 billion-plus in capital spending planned for 2026 more than double what Tesla spent last year, but its nature highlights a fundamentally different vision of where the transportation market is heading. Here's why.
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Tesla's spending commitments change everything
The first point to note is that Tesla is not moving away from passenger electric vehicles (EVs). Yes, three of six factoriesit intends to invest in are for Optimus production, Semi truck manufacture, and a megafactory to build battery storage systems. However, the other three factory investments, a lithium refinery, a lower-cost lithium iron phosphate (LFP) battery factory (batteries ideal for lower cost models and Cybercab), and Cybercab production are explicitly to support EV growth.
These investments align with Tesla's vision for the EV market. While competitors such as Ford, General Motors, and Stellantis have scaled back their EV programs to focus on lower-cost models, Tesla remains committed to autonomous transportation as the future.
Why Tesla is already winning
CEO Elon Musk couldn't have been any clearer on the recentearnings callwhen arguing that "probably less than 5% of miles driven will be where somebody is actually driving the car themselves in the future, maybe as low as 1%."
As Musk isn't moving away from EVs, he's leading the movement to where the market will be, and that's why he argues that "we would expect over time to make far more Cybercabs than all of our other vehicles combined."
It's a bold vision that requires Tesla to secure regulatory approval for its robotaxis, launch its dedicated robotaxi, Cybercab, and then receive approval for commercially available autonomous full self-driving (FSD) software.
There is some evidence that supports Musk's vision of robotaxi EVs leading the market. For example, Insurify.com, a car insurance comparison site, lists the top 10 vehicles used for rideshare. As you can see below, the Tesla Model 3 is the most expensive car popularly used as a taxi, but its lower cost per mile puts it on the list.
Taking the argument further, these statistics equate to the Tesla Model 3 with a driver. However, a Cybercab could cost less than $30,000 to buy and will have a significantly lower cost per mile than a Tesla taxi with a driver, let alone an internal combustion engine (ICE) taxi with a driver.
Will Tesla's big bet work out?
The investment in lithium supports battery production, which in turn supports Cybercab production. Meanwhile, the evidence shows that EVs, specifically Tesla EVs, are already widely used as taxis. All of which suggests that if Tesla can achieve its regulatory aims, the cost-per-mile case for robotaxis will be compelling enough to secure the company's transportation vision.
While there's no guarantee it will all come to fruition, the massive upside potential is enough to encourage Tesla shareholders to believe in the stock.
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Tesla Makes Its Largest Investment Bet Yet in Its Own Vision

Key Points
The global EV market surged in 2025 while the American one contracted.
China's market is seeing a few dominant players like BYD and Geely emerge, closing the window for smaller companies like Nio to carve out a niche.
America's EV market remains wide open for a company like Rivian to break into it.
The global electric vehicle (EV) market is in an odd place.
Around the world, EV sales surged 21% in 2025, led by a 33% sales increase in the European market. China remains the dominant EV market globally and it saw EV sales grow 19% in 2025.
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However, in the American market, EV sales dipped 1% in 2025 largely due to the end of the EV tax credit late last year. Also of note was Tesla losing its crown as the world's largest EV producer to China's BYD and Tesla also has another Chinese EV company, Geely, nipping at its heels.
So, if you're wondering whether you should add American EV producer Rivian (NASDAQ: RIVN) or China's Nio (NYSE: NIO) to your portfolio, the answer is obviously Nio, right?
Not quite.
A tale of two markets
Nio's problem has nothing to do with its cars. I actually really like how they look and they're pretty quick with long ranges to boot. The eT5 wagon might be my favorite of the lot. Nio's also got a battery swap network that allows the owners of its cars to swap a spent battery for a fresh one, alleviating range anxiety concerns common with EVs.
Nio's problem is that the Chinese EV market is maturing and entering its consolidation phase. EVs now make up the majority of new car sales in China.
And if you take a look at the top EV producers by market share in China, Nio isn't even in the top 10. BYD leads the pack at 26%, followed by Geely at 8.8%. Tesla even outsells Nio in its own market, with 4.4% market share securing it the No. 4 spot.
The market is closing rapidly. I predict it will begin to consolidate with larger automakers buying their smaller competitors in much the same way General Motors, Ford, and Chrysler did in the U.S. through the 1950s and 1960s.
From where it sits right now, Nio is looking much more like an AMC than a Ford. The Javelin was a cool car but it couldn't save AMC from being absorbed by Chrysler in 1987.
It will be even rougher for smaller Chinese EV producers like Nio with the government rolling back its subsidies for the EV market in its newest five-year plan.
Couple the end of those subsidies with the fact that Nio is not profitable and is likely a long way from achieving profitability. In its latest quarter (Q3 2025), vehicle sales were up 15% year over year but net losses remained high at $488.9 million.
Now, in fairness to Nio, it is reducing its net losses by about 30% quarter over quarter but it's not closing in on profitability fast enough. Meanwhile, most of its rivals have long-since achieved profitability.
So, even though it operates in the world's largest EV market, that market is becoming more hostile to smaller players like Nio. Why is Rivian any different?
A wide-open frontier
The main difference for Rivian is that the American EV market is much more wide open than China's. There is really only one large-scale EV manufacturer operating here and that's Tesla. In 2025, it sold six times as many cars as General Motors' main EV brand Chevrolet.
And while Nio is not on the list of China's biggest EV sellers, Rivian is on the list of America's. It's in the No. 6 spot, actually selling more EVs in America than Honda, Volkswagen, and GM's GMC brand. So, while it's swimming in a big pond like Nio, Rivian has far fewer big fish to share that pond with.
Like Nio, Rivian has not achieved net profitability but it's approaching profitability at a much faster pace than Nio. Q4 2025 saw a dip in sales, likely due to the EV tax credit expiring, but for the whole of 2025, Rivian saw its revenue grow 8% year over year.
Rivian did achieve gross profitability for 2025, hitting $144 million compared to a $1.2 billion gross loss in 2024 -- a $1.3 billion improvement in just one year. However, net profitability was a loss of $3.6 billion. Still, that's considerably lower than the $4.7 billion net loss it had in 2024.
In some ways Rivian may be better off because EV manufacturers in the U.S. never got as much support as their Chinese counterparts. Even without the EV tax credit, Rivian still sold 9,745 cars in Q4 2025, a decline from Q4 2024, sure, but it didn't derail a good year for the company.
And I expect this year will be even better because Rivian is slated to release the R2 SUV in March. The R2 is a low-cost model starting at $45,000, below the average new car cost in America of $49,000.
Rivian is still a risky prospect but it has a much greater opportunity than Nio and if you're looking for a speculative EV play, Rivian is looking a lot stronger than Nio.
Should you buy stock in Rivian Automotive right now?
Before you buy stock in Rivian Automotive, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $414,554!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,120,663!*
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James Hires has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends BYD Company, General Motors, and Volkswagen Ag. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Better EV Stock: Rivian vs. Nio

(RTTNews) - Japanese automajor Honda Motor Co., Ltd. (HMC, 7267.T) Tuesday reported lower profit in the first nine months of fiscal year ending March 31, with weak sales revenue. Further, the firm maintained full-year profit view, and lifted sales revenue forecast.
For the nine-month period, profit attributable to owners of parent was 465.44 billion yen, down 42.2 percent from 805.26 billion yen a year ago. Earnings per share were 115.53 yen, compared to 169.69 yen last year.
Operating profit fell 48.1 percent to 591.51 billion yen from prior year's 1.14 trillion yen.
Sales revenue for the period dropped 2.2 percent to 15.98 trillion yen from 16.33 trillion yen in the previous year.
Looking ahead for the 12-month period to March 31, 2026, the company still expects attributable profit of 300 billion yen or 75.05 yen per share, a drop of 64.1 percent from last year, and operating profit of 550 billion yen, down 54.7 percent year-over-year.
Sales revenues are now expected to be 21.10 trillion yen, down 2.7 percent from last year. The previous outlook was sales revenues of 20.70 trillion yen.
In Tokyo, Honda Motor shares closed Tuesday's trading 2.2 percent lower at 1,670.50 yen.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Honda Motor 9-month Results Down; Backs FY Profit View, Lifts Sales Revenue Forecast

Key Points
Rivian is an up-and-coming EV stock that managed to out-sell Honda in EVs last year.
The company is introducing the more affordable R2 this year to expand its customer base.
However, its financials, despite improvement, leave a lot to be desired.
When you look at young electric vehicle (EV) companies like Rivian Automotive (NASDAQ: RIVN), they seem like great opportunities at first. They've usually got a solid product that gets good reviews. But in terms of financials they're often on shaky ground. That's why, despite the potential of any of these EV companies, Tesla (NASDAQ: TSLA) and Ford Motor Company both look like stronger EV plays right now.
And while it certainly is doing far better than Lucid, I don't think Rivian is a good investment right now. It has potential, but at present there's too much risk.
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Conductive current
The American EV market is an odd place. It's utterly dominated by Tesla, which controls 43.1% of the market, and then there's everybody else. General Motors, Ford, Hyundai, and Volkswagen are the other top players and collectively make up another 31.6% of the EV market.
Rivian did put in a good showing for itself last year. It ranked sixth place by EV sales behind BMW and ahead of Honda.
It has potential and it's gaining traction. Still, it sells less than half the EVs that second place Chevrolet (owned by General Motors) sold in 2025 and less than a tenth the nearly 600,000 EVs Tesla sold in 2025.
The end of the EV tax credit late last year put a damper on sales of EVs in the United States. Sales for EVs across the board were down 36% from Q4 2024. But overall EV sales in 2025 were down only slightly from 2024.
Slowing sales at the end of 2025 have seen most legacy automakers push back their plans to introduce more EVs to the market, but the segment isn't going anywhere, as EV costs are coming down and their ranges are increasing.
That's why there's hope for Rivian, especially as it seems to be going the Tesla route. The company currently only sells one model, the R1, which can be had as a truck or an SUV, and they both start in the $70,000 range.
However, this year Rivian is introducing the R2, which is a more affordable SUV that starts at $45,000. The company also has a planned R3 model, which is a smaller crossover. Anyone who is a fan of '80s rally cars will probably dig it.
But the money is what's keeping me less than optimistic about Rivian and it's why I don't think it's worth looking at just yet.
Electrical resistance
The good news for Rivian was that in its latest quarter, the third quarter of 2025, revenue hit $1.5 billion, up 78% over Q3 2024. Consolidated gross profit also hit $24 million for the quarter, an improvement of $416 million.
The bad news is that the company still ran a large $2.75 billion loss for the first nine months of 2025. It's an improvement over the $4 billion loss in the first nine months of 2024, but still quite steep.
And, despite an improvement in gross profit for Q3 2025, Rivian's gross margin is just 2%, which is razor thin even in the auto industry. Tesla, for instance, has a gross margin of 17% and an operating margin of 5%. The company also has a net cash position of $4.4 billion to nearly $5 billion in debt, which is concerning.
In all, Rivian could become a success story like Tesla; we'll have to see how the launch of the lower-cost R2 goes and the R3 after it. But right now Rivian is on shaky ground and I think it's a wait-and-see sort of company.
Should you buy stock in Rivian Automotive right now?
Before you buy stock in Rivian Automotive, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $431,111!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,521!*
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James Hires has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Bayerische Motoren Werke Aktiengesellschaft, General Motors, and Volkswagen Ag. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Honda Motor Company, Ltd.

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