AD #4242 - Stellantis Posts Massive €22 Billion Loss; Musk's Robotaxi Promises Vs. Reality; BYD Launches $5 Daily Lease
About this episode
Stellantis reported a massive €22 billion loss in 2025, driven by EV investment write-offs, with some recovery after new leadership changes. Toyota may unwind its kyretzu supply chain system, signaling a shift in Japanese automaking. Elon Musk’s robotaxi promises remain unfulfilled, with Tesla yet to apply for permits in California, while competitors like Waymo advance. Chinese automakers BYD, SAIC, and GAC made significant global sales gains, surpassing Ford. GM expands its mobile service fleet with cost-effective SUVs after BrightDrop vans were discontinued. Ford’s Uptime Assist improves dealer repair times using AI. China’s auto market faces a downturn, prompting aggressive discounts and innovative financing like BYD’s $5 daily lease.
write off
"Ever since Stalanta's CEO Antonio Filosa announced a twenty six billion dollar write off of its EV investments just weeks ago, we knew the company's financial results for twenty twenty five would be abysmal, and they were."
A write off means the company says some money they spent is lost and they can't get it back, so they count it as a loss.
A write off in business refers to recognizing that an asset or investment has lost value and is unlikely to recover, leading to a financial loss recorded in the company's accounts.
Stellantis
"Ever since Stalanta's CEO Antonio Filosa announced a twenty six billion dollar write off of its EV investments just weeks ago, we knew the company's financial results for twenty twenty five would be abysmal, and they were. The company sold five and a half million vehicles last year, up one percent, but its revenue dropped two percent, coming in at one hundred and fifty three billion euros."
Stellantis is a big company that makes many different cars, including Jeep and Dodge. It was created when two big car companies joined together.
Stellantis is a multinational automotive manufacturing corporation formed in 2021 from the merger of Fiat Chrysler Automobiles and PSA Group. It owns many well-known car brands such as Jeep, Dodge, Ram, Peugeot, and Fiat.
EV investments
"Ever since Stalanta's CEO Antonio Filosa announced a twenty six billion dollar write off of its EV investments just weeks ago, we knew the company's financial results for twenty twenty five would be abysmal, and they were."
EV investments mean the company spent money to make electric cars and the parts needed for them.
EV investments refer to a company's financial commitments toward electric vehicle technology, including research, development, and production of electric cars and related infrastructure.
adjusted operating loss
"It posted an adjusted operating loss of eight hundred and forty two million adjusted means, not counting the massive writeoff. A year ago, Stalantis posted an operating profit of three point six billion euros, and it was a bloodbath."
Adjusted operating loss means the company lost money from its main business after ignoring some special costs that don't happen all the time.
Adjusted operating loss is a company's loss from its core business operations after removing one-time or unusual expenses to provide a clearer picture of ongoing profitability.
net loss
"On the bottom line, it posted a net loss of twenty two billion. Even worse, it had negative free cash flow of four and a half billion, and as a result, the board eliminated dividends for the year."
Net loss means the company spent more money than it made overall, so it lost money.
Net loss is the total amount of money a company loses after all expenses, taxes, and costs are subtracted from total revenue during a specific period.
free cash flow
"Even worse, it had negative free cash flow of four and a half billion, and as a result, the board eliminated dividends for the year, and the company's uaw will not get any profit sharing checks."
Free cash flow is the money left over after the company pays its bills and buys things it needs to keep running.
Free cash flow is the cash a company generates after paying for operating expenses and capital expenditures, indicating how much money is available for dividends, debt repayment, or reinvestment.
dividends
"...and as a result, the board eliminated dividends for the year, and the company's uaw will not get any profit sharing checks. That will be a better pill to swallow for workers, because as recently as twenty twenty three they were getting almost fourteen thousand dollars in profit sharing."
Dividends are money the company gives to people who own its stock when it makes a profit.
Dividends are payments made by a company to its shareholders from its profits as a reward for investing in the company.
profit sharing
"...and the company's uaw will not get any profit sharing checks. That will be a better pill to swallow for workers, because as recently as twenty twenty three they were getting almost fourteen thousand dollars in profit sharing."
Profit sharing means the company gives some of the money it makes to its workers as a bonus.
Profit sharing is a program where a company distributes a portion of its profits to employees, often as bonuses or additional compensation.
unwinding previous management decisions
"Stillant has showed significant progress in the second half of the year, which was after Felosa took over and started unwinding what his predecessor had done."
Unwinding previous management decisions means the new boss is fixing or undoing things the old boss did that didn't work well.
Unwinding previous management decisions refers to reversing or changing strategies and actions taken by former leadership to improve company performance or correct mistakes.
keiretsu system
"Could Toyota be on the verge of unwinding its kyretzu system. According to a report from Reuters, it could be headed in that direction. A kiret zu is a supply chain system where an automaker and its suppliers owns stock in each other. For example, Toyota owns twenty percent of Denso, the giant Japanese supplier, while Denso owns about three percent of Toyota. That cross ownership allows Toyota and its suppliers to coordinate prices in production to a degree that's not possible in the US or Europe, and it's been a huge advantage for Toyota and the other they're Japanese automakers, at least up until now, a chiretz who can also be bureaucratic and slow, and if suppliers outside the kyretes who developed critical new technology, an automaker can be left behind."
A keiretsu is when a car company and its parts suppliers own pieces of each other’s companies. This helps them work together closely but can sometimes make things slower or harder to change.
A keiretsu is a Japanese business network where an automaker and its suppliers own shares in each other, enabling close coordination in production and pricing. This system provides advantages like stability and long-term collaboration but can also lead to bureaucracy and slower innovation.
Denso
"A kiret zu is a supply chain system where an automaker and its suppliers owns stock in each other. For example, Toyota owns twenty percent of Denso, the giant Japanese supplier, while Denso owns about three percent of Toyota."
Denso is a company from Japan that makes important car parts, like electronics and engine pieces, and works closely with Toyota.
Denso is a large Japanese automotive parts supplier that produces components like electronics, thermal systems, and powertrain parts. It has a close business relationship with Toyota through cross-shareholding in the keiretsu system.
robotaxi fleet
"In twenty nineteen, Elon Musk predicted that by the end of twenty twenty, Tesla would have a million autonomous cars operating in a robotaxi fleet. Obviously, that never happened, and every year since then must say it would happen the following year. Now he's saying that robotaxis are only months away from launching in California and will be quote widespread by the end of this year."
A robotaxi fleet is a group of self-driving cars that work like taxis, picking up and dropping off passengers without a driver inside.
A robotaxi fleet refers to a group of autonomous vehicles operating as taxis without human drivers. Companies like Tesla have planned to deploy such fleets for ride-hailing services, but widespread commercial availability has faced delays.
Tesla
"out that Tesla has still not even applied for robotaxi permits in California. While Elon Musk has complained that California has overly burdened some reporting requirements,"
Tesla makes electric cars that run on batteries instead of gas. They also work on self-driving car technology.
Tesla is an American electric vehicle and clean energy company known for its electric cars and advanced driver-assistance technologies.
robotaxi permits
"out that Tesla has still not even applied for robotaxi permits in California. While Elon Musk has complained that California has overly burdened some reporting requirements, Waimo has logged thirteen million tast miles,"
Robotaxi permits let companies run self-driving taxis that can carry people without a driver. They need special permission from the government to do this safely.
Robotaxi permits are official approvals required for companies to operate autonomous taxis on public roads, allowing them to pick up and transport paying customers without a human driver.
Waimo
"has overly burdened some reporting requirements, Waimo has logged thirteen million tast miles, received multiple approvals from the state, and has been operating robotaxis there with paying customers since twenty twenty three."
Waimo is a company that runs self-driving taxis in California. They have driven a lot and got permission to carry paying customers.
Waimo is a company operating autonomous robotaxis in California, having logged millions of miles and received state approvals to provide paid rides.
BYD
"In twenty twenty four, BYD was the only Chinese automaker to crack the top ten in global car sales, but now SEIC and g Lee have joined that list."
BYD is a big car company from China that makes electric cars and batteries. They sell a lot of cars worldwide.
BYD is a Chinese automaker known for electric vehicles and batteries, ranking among the top global car sellers.
SAIC
"SAIC was right behind with four and a half million sales, a gain of twelve percent, but keep in mind that includes all the vehicles that SAIC makes for its joint venture partners like GM and Volkswagen."
SAIC is a big car company from China. They make cars by themselves and also work with other companies like GM and Volkswagen to build cars.
SAIC Motor Corporation is a major Chinese state-owned automotive manufacturer that produces vehicles under its own brands and joint ventures with companies like General Motors and Volkswagen.
Ford
"Byd and Saic passed Ford, which sold four point four million vehicles, and GLE was ninth overall with four point one million sales up twenty six percent,"
Ford is a big car company from the USA. They make many types of vehicles like trucks and cars.
Ford is a major American automaker known for producing a wide range of vehicles including trucks, SUVs, and passenger cars.
Mercedes-Benz GLE
"... which sold four point four million vehicles, and GLE was ninth overall with four point one million sal..."
The Mercedes-Benz GLE is a fancy and comfortable SUV that many people like because it drives well and has lots of nice features inside. It's a popular choice for those who want a bigger car with luxury touches. People talk about it a lot because it sells really well.
The Mercedes-Benz GLE is a mid-size luxury SUV known for its blend of performance, comfort, and advanced technology. It is a significant model in Mercedes-Benz's lineup, often praised for its spacious interior and strong engine options, making it popular among luxury SUV buyers. Its mention in sales contexts highlights its strong market presence and consistent demand.
Volkswagen
"Toyota, Volkswagen, Hyundai, General Motors, and Stilantis were the top five brands respectively, and Honda rounded out the top ten."
Volkswagen is a big car company from Germany that makes many types of cars, from small ones to fancy ones.
Volkswagen is a major German automaker known for producing a wide range of vehicles from economy cars to luxury models.
General Motors
"Toyota, Volkswagen, Hyundai, General Motors, and Stilantis were the top five brands respectively, and Honda rounded out the top ten."
General Motors is a big car company from the USA that owns several brands like Chevrolet and Cadillac.
General Motors (GM) is a large American automaker that owns brands like Chevrolet, GMC, Cadillac, and Buick.
Hyundai
"Toyota, Volkswagen, Hyundai, General Motors, and Stilantis were the top five brands respectively, and Honda rounded out the top ten."
Hyundai is a car company from South Korea that makes cars that are good value and have lots of features.
Hyundai is a South Korean automaker known for affordable and well-equipped vehicles.
Honda
"Toyota, Volkswagen, Hyundai, General Motors, and Stilantis were the top five brands respectively, and Honda rounded out the top ten."
Honda is a car company from Japan that makes dependable cars and motorcycles.
Honda is a Japanese automaker known for reliable cars, motorcycles, and power equipment.
Toyota
"Toyota, Volkswagen, Hyundai, General Motors, and Stilantis were the top five brands respectively, and Honda rounded out the top ten."
Toyota is a famous car company from Japan that makes cars known for being dependable and easy to drive.
Toyota is a leading Japanese automaker known worldwide for reliable and efficient vehicles.
mobile service business
"General Motors is looking to significantly expand its mobile service business, but not with bright Drop electric vans."
Mobile service means mechanics come to your car wherever it is to fix or maintain it, instead of you having to go to a garage.
A mobile service business involves providing vehicle maintenance and repair services at the customer's location rather than at a fixed shop. This approach offers convenience and faster service.
Cadillac Xt
"...ersions of the Chevrolet Equinox, GMC Terrain and Cadillac XT five to its mobile fleet, and the upfront costs o..."
The Cadillac XT4 is a small, fancy SUV that is easy to drive around town and has nice things inside to make the ride comfortable. It's made by the same company that makes some other popular cars but looks and feels more special. People sometimes use it for work fleets because it’s a good mix of price and luxury.
The Cadillac XT4 is a compact luxury crossover SUV that offers a stylish design and a comfortable ride, targeting urban buyers looking for premium features in a smaller package. It shares some components with other GM models like the Chevrolet Equinox and GMC Terrain but stands out with upscale interior materials and technology. It's often discussed in fleet contexts due to its balance of cost and luxury appeal.
GMC Terrain
"GM is adding upfitted versions of the Chevrolet Equinox, GMC Terrain and Cadillac XT five to its mobile fleet,"
The GMC Terrain is a small SUV that GM is using to fix cars on the road. It's a cheaper option than the electric vans they had before.
The GMC Terrain is a compact SUV from GMC. GM is using modified versions of this vehicle for its mobile service fleet to provide maintenance and repairs more affordably.
Chevrolet Equinox
"GM is adding upfitted versions of the Chevrolet Equinox, GMC Terrain and Cadillac XT five to its mobile fleet,"
The Chevrolet Equinox is a small SUV that GM is changing to help fix cars on the road. It's cheaper than the electric vans they used before.
The Chevrolet Equinox is a compact crossover SUV made by Chevrolet. GM is using upfitted versions of this vehicle for its mobile service fleet as a more cost-effective alternative to electric vans.
Cadillac XT5
"GM is adding upfitted versions of the Chevrolet Equinox, GMC Terrain and Cadillac XT five to its mobile fleet,"
The Cadillac XT5 is a luxury SUV that GM is changing to help fix cars on the road. It's less expensive than the electric vans they used before.
The Cadillac XT5 is a luxury midsize crossover SUV by Cadillac. GM is using upfitted versions of this vehicle for its mobile service fleet as a cost-effective alternative to electric vans.
Uptime Assist
"The automaker recently launched an initiative for its franchise dealers to help them achieve same day repairs, called Uptime Assist. The service, which is free to dealers, involves call centers of about twenty five employees monitoring each repair order a dealership opens."
Uptime Assist is a program by Ford that helps car dealers fix cars faster, sometimes even the same day, by keeping track of repairs and offering help when needed.
Uptime Assist is a Ford initiative aimed at helping franchise dealers achieve same-day repairs by monitoring repair orders and providing support to speed up the process.
LFP battery pack
"A roughly sixteen kilowater hour LFP battery pack are expected to carry over from the current model. Those give the Mini EV a top speed of just over sixty miles an hour in about one hundred and twenty five miles of range."
An LFP battery is a special kind of battery used in electric cars that lasts a long time and is very safe to use.
LFP stands for lithium iron phosphate, a type of battery chemistry used in electric vehicles known for its safety, longevity, and thermal stability compared to other lithium-ion batteries.
electric motor
"A thirty kilowater forty two horse power electric motor and a roughly sixteen kilowater hour LFP battery pack are expected to carry over from the current model. Those give the Mini EV a top speed of just over sixty miles an hour in about one hundred and twenty five miles of range."
An electric motor is what makes an electric car move by using electricity instead of gas.
An electric motor converts electrical energy from the battery into mechanical energy to drive the vehicle's wheels, providing propulsion without the need for gasoline.
Honda Accord plug-in hybrid
"Honda is now offering a limited time discount on the plug and hybrid version of the Accord, worth over fourteen thousand, five hundred dollars, which brings the vehicle's starting price to about twenty thousand bucks."
The Honda Accord plug-in hybrid is a car that uses both gas and electricity to help save fuel and reduce pollution. It can drive some distance using only electricity before switching to gas.
The Honda Accord plug-in hybrid is a version of the popular Accord sedan that combines a gasoline engine with an electric motor and a battery, allowing it to run on electric power for short distances and improving fuel efficiency.
plug-in hybrid
"Honda is now offering a limited time discount on the plug and hybrid version of the Accord, worth over fourteen thousand, five hundred dollars, which brings the vehicle's starting price to about twenty thousand bucks."
A plug-in hybrid car can run on both gas and electricity. You can charge it by plugging it in, so it can drive using electricity for a while before using gas.
A plug-in hybrid is a type of vehicle that combines a traditional internal combustion engine with an electric motor and a rechargeable battery that can be charged by plugging into an external power source. This allows the car to drive on electric power alone for a limited range, improving fuel economy and reducing emissions.
zero percent interest loan
"BYD has another promotion running on certain models as well, for zero percent interest for three years."
A zero percent interest loan means you borrow money to buy something, like a car, and you don't have to pay extra money (interest) for borrowing it during a certain time.
A zero percent interest loan is a financing offer where the borrower pays no interest on the loan amount for a specified period, making the cost of borrowing effectively zero during that time.
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