Dj Ibd: Ford Stock Tests Key Level With Earnings Due Amid Trade War

On Wednesday, Wards Intelligence, now a part of Omdia, released its annual Software-Defined Vehicle (SDV) ranking, revealing a shift in the technological innovation landscape. Tesla (NASDAQ:TSLA), while maintaining its overall lead, has been overtaken by NIO and Xiaomi (OTC:XIACF), which now rank second and third, respectively. The SDV ranking is a measure of automotive companies' progress in developing vehicles that are heavily based on software capabilities.

Xpeng (NYSE:XPEV) and Rivian (NASDAQ:RIVN) hold the third and fourth positions, respectively, placing them in the Leaders category alongside Tesla, NIO, and Xiaomi. Companies in this group are recognized for their focus on a software-first approach and lack of legacy constraints, driving forward the boundaries of SDV innovation. Principal Analyst Maite Bezerra from Wards Intelligence emphasized the significance of these automakers in refining and scaling SDV-related technologies.

The Strong Contenders category, which includes brands like Zeekr, Lucid (NASDAQ:LCID), Leapmotor (HK:9863), and BMW (ETR:BMWG), has seen 67% of its automakers actively commercializing SDVs, marking a considerable shift from the previous year. Bezerra pointed out that companies such as BYD (SZ:002594) within this category are poised to challenge the market leaders due to their rapid advancement in SDV technology.

In the Contenders category, which features Hyundai (OTC:HYMTF), the Volkswagen (ETR:VOWG_p) Group, and General Motors (NYSE:GM), there has been a noticeable increase in the deployment of semi-SDVs and the development of more comprehensive SDV strategies. Despite this progress, these automakers must still make significant strides to bring full SDVs to production. The Followers category, which previously included OEMs without public SDV roadmaps, has begun to establish clear SDV objectives in reaction to the market's rapid evolution.

The evaluation of SDV progress is complex, with inconsistent definitions and benchmarks. To mitigate this, Wards Intelligence conducts extensive research annually, using advanced statistical tools to determine the most accurate indicators of SDV advancement. In the latest edition, 27 automakers were assessed across five metrics, including financial strength, portfolio complexity, vehicle platform readiness, organizational readiness, and SDV performance.

Bezerra highlighted that 62% of automakers in the Leaders and Strong Contenders categories are Chinese or Chinese-owned, underscoring China's growing dominance in the SDV segment. Additionally, only three of the 14 automakers in these top categories are established Western companies, indicating a continued trend towards Chinese leadership and the ongoing challenges Western automakers face in adapting to the SDV market in 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- IONNA, a joint venture by leading automakers including BMW (ETR:BMWG), General Motors (NYSE:GM), Honda (NYSE:HMC), Hyundai (OTC:HYMTF), Kia, Mercedes-Benz (OTC:MBGAF), Stellantis (NYSE:STLA), and Toyota (NYSE:TM), has transitioned from public beta to full-scale national release, marking a significant milestone in the American automotive industry. The announcement was made on February 5, 2025, at the first IONNA Rechargery in Apex, North Carolina, and at the new headquarters and customer experience lab in Durham, North Carolina.

IONNA has completed an extensive testing phase in late 2024, using automaker vehicle fleets and everyday drivers to stress-test the network. Over 4,400 charging sessions were completed on more than 80 unique vehicle models, dispensing nearly 63,000 kilowatt-hours of energy. With this experience, IONNA has refined its hardware, software, and customer experience, preparing for a nationwide expansion.

As part of the national release, IONNA has over 100 contracted sites across the country, including new Rechargeries in Houston, Texas, and Abilene, Kansas. Six more locations are under construction, including one in Willcox, Arizona. The newly opened headquarters and customer experience lab in Durham will serve as a hub for ongoing testing and innovation, emphasizing a driver-first experience.

IONNA plans to bring more than 1,000 additional charging bays online by the end of 2025. This expansion is not only about infrastructure but also represents a substantial investment in American jobs and manufacturing. Each of the 30,000 charging bays to be built over the next five years will create new jobs and promote technological innovation.

Starting this quarter, IONNA will introduce computer-vision powered by AI and sensor fusion technology at the Garner, North Carolina location. In collaboration with Amazon (NASDAQ:AMZN), IONNA will leverage Amazon's Just Walk Out technology to enable automated grab & go offerings, allowing drivers to pick up refreshments and essentials 24/7 without checkout lines.

IONNA also plans to set a new standard for interoperability and ease of use in 2025. Its Plug & Charge technology will grow to include a leading number of automakers as the year progresses. Through vehicle integration, IONNA will enable features like AI-driven smart reservations/routing optimization, in-car payments, and other features, aiming to create the most integration-rich charging network in America.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- In a note to clients Wednesday, Bernstein warned that new tariffs on Mexico and Canada could significantly impact the free cash flow (FCF) of major U.S. automakers, with General Motors (NYSE:GM) facing the most severe hit.

"25% tariffs could decrease auto FCF by up to 60%," said the firm.

They estimate that a 25% tariff could reduce GM’s FY 2026 auto FCF by 64% ($6.7 billion), Ford’s by 39% ($2.9 billion), and Stellantis’ by 38% (€3.5 billion) in a worst-case scenario.

On February 1st, President Trump announced 25% tariffs on Mexico and Canada, along with 10% additional tariffs on China, sending auto stocks down as much as 8% on Monday.

However, after the administration delayed the tariffs until March 4th, stocks quickly rebounded on Tuesday.

“While the sector is not closer to gaining any certainty, the price action allows us to ask: Did the market get it right?” Bernstein wrote.

Despite the recovery, Bernstein believes the market reaction provides key insights into investor sentiment.

“Market sees tariffs as transitory. The magnitude points towards an expectation that tariffs would last for less than 3 months,” the analysts noted.

Additionally, Ford (NYSE:F) was viewed as a relative winner, though Bernstein cautions that “we would still expect significant headwinds for Ford in a tariff scenario.”

Meanwhile, Stellantis (NYSE:STLA) was seen as the biggest loser, but Bernstein argues GM is actually the most at risk due to its financial exposure.

More broadly, Bernstein sees continued policy uncertainty as a major challenge for the sector.

“While this makes it difficult to make equity investment decisions, it will make it near impossible for automotive companies to make actual investment decisions,” the analysts warned.