"GM just wrote off billions to exit EV capacity right as oil makes EVs look like the obvious long-term play again. Record Truck Margins Are Not Moving the Stock. The underlying business is genuinely strong as GM's Q4 EBIT-adjusted came in at $2.8 billion, up 13.3% year-over-year, with a Q4 EBIT margin expanding to 6.1% from 5.3%."
"Retail investors are weighing that against three things harder to dismiss: GM took more than $7.2 billion in special charges in Q4 alone, tied to EV capacity realignment, producing a net loss of $3.3 billion for the quarter despite the adjusted earnings beat. Full-year 2025 net income fell 55.11% year-over-year to $2.70 billion, even as operating cash flow rose sharply."
"Ford faces a similar bind, down 8.6% year-to-date at $11.98 after absorbing $10.7 billion in Model e asset impairments in Q4 and projecting another $4 to $4.5 billion in EV losses for 2026. Fleet sales as a share of total volume climbed to 19.6% from 16.9%, a lower-margin mix shift that quietly pressures the profitability story."
General Motors trades at $73.05, down 10% year-to-date, despite strong underlying business fundamentals. Q4 EBIT-adjusted earnings reached $2.8 billion with expanding margins, and the company raised its dividend 20% while authorizing a $6 billion buyback. However, investors are concerned about three major headwinds: $7.2 billion in special charges tied to EV capacity realignment that produced a net loss despite adjusted earnings beats, full-year 2025 net income declining 55% year-over-year, and fleet sales increasing to 19.6% of volume, representing a lower-margin mix shift. Ford faces similar challenges with $10.7 billion in Model e impairments and projected $4-4.5 billion in additional EV losses for 2026. The timing creates a strategic whipsaw as both automakers write off EV capacity while oil prices surge to $100 per barrel.
#ev-write-offs-and-capacity-realignment #automotive-industry-earnings-and-margins #oil-prices-and-ev-strategy-timing #stock-market-performance-and-investor-sentiment
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