Adam Jonas

Adam Jonas from Morgan Stanley asked about GM's plans for humanoid robotics, given its history with NASA, and questioned how GM expects to achieve EV profitability when benchmarks like Tesla appear to be struggling without credits.

Answer

Chairman & CEO Mary Barra highlighted GM's deep history in robotics and ongoing focus on manufacturing efficiency through automation and simplification, emphasizing workforce training. On EV profitability, she stated GM's advantage lies in brand-true, well-designed vehicles, future battery cost reductions, and dealer network strength. EVP & CFO Paul Jacobson added that GM's manufacturing flexibility to switch between ICE and EV production provides a key advantage over pure-play EV makers during market transitions.

Adam Jonas of Morgan Stanley asked for the total number of Super Cruise-equipped vehicles on the road and commented on the validation of GM's autonomous strategy. He followed up by asking how tariff changes and AI advancements, particularly in robotics, might impact GM's approach to factory automation and labor.

Answer

Chair and CEO Mary Barra confirmed the addition of 230,000 Super Cruise units and stated the total fleet is projected to exceed 700,000 by year-end. On automation, Barra emphasized that efficiency starts with smart vehicle design for ease of manufacturing. She confirmed GM is actively using automation, robots, and cobots to improve quality and ergonomics and is exploring the latest technologies through various partnerships, including with NVIDIA, to enhance efficiency across the business.

Adam Jonas inquired about the financial implications of moving to an end-to-end approach for Super Cruise and the difference in data collection between ICE and EV platforms. He also asked if GM sees an opportunity to help its Chinese partners access the U.S. market using GM's domestic capacity.

Answer

Chair and CEO Mary Barra stated that the planned $1 billion annualized savings from refocusing Cruise captures the necessary compute spend for ADAS development. Regarding China, she emphasized that the current focus is on leveraging GM's own North American capacity and that a level playing field does not currently exist, also highlighting the importance of where IP is developed for national security.

Adam Jonas from Morgan Stanley asked about GM Financial's credit performance and retail penetration targets. He also inquired about the evolving mix of capital expenditures between EV, AV, and ICE, and the potential for AI-related investments.

Answer

GM Financial CEO Dan Berce stated that credit performance is tracking as expected and the long-term retail penetration target is 40-45%. EVP and CFO Paul Jacobson added that CapEx has shifted from foundational infrastructure to the product portfolio, maintaining a balance between EV and ICE while funding broad efficiency gains through technology.

Adam Jonas inquired about the status of the $6.6 billion Department of Energy loan for the Georgia facility, asking if any funds had been drawn, and about the relationship between Rivian and its micromobility spin-off, Also Inc.

Answer

CFO Claire McDonough clarified that no funds from the DOE loan have been drawn as construction has not yet begun, but Rivian finds the terms attractive and intends to use it. CEO RJ Scaringe explained that Also Inc. was a strategic spin-off to pursue the micromobility market with outside capital. He noted Rivian remains a significant shareholder with just under 50% ownership and that there is ongoing technology leverage between the two companies.

Adam Jonas questioned Rivian's strategy to compete with Tesla's Full Self-Driving (FSD), given its smaller fleet and later start on end-to-end AI. He also asked for specific details on how Rivian would mitigate supply risks for rare earth materials if China were to impose export restrictions.

Answer

CEO Robert Scaringe detailed Rivian's vertically integrated autonomy approach, emphasizing its high-quality sensor data from Gen 2 vehicles, which feeds a data flywheel to train its AI models. He stated this high-quality data helps compensate for a smaller fleet size. Regarding rare earths, Scaringe mentioned the company is exploring solutions like developing heavy rare-earth-free motors and rotor assemblies that don't require these metals, noting that trade challenges accelerate this work.

Adam Jonas inquired about the investment in the Rivian Autonomy Platform, specifically the spending on compute and training, the mix of in-house versus partner work, and the allocation of future R&D and CapEx to AI. He also asked for details on the Software and Services segment, including 2025 regulatory credit assumptions and the revenue scaling from the Volkswagen JV.

Answer

CEO RJ Scaringe explained the strategic shift to an AI-centric, end-to-end autonomy platform with 10x more compute, noting they are pursuing creative, off-balance-sheet ways to access GPU power to manage costs. CFO Claire McDonough confirmed the 2025 outlook includes approximately $300 million in regulatory credits and guided for the Software and Services segment to generate over $1 billion in revenue for the full year, driven significantly by the VW joint venture.

Adam Jonas asked about the 'challenging consumer environment,' requesting details on lease penetration, Rivian's residual value exposure, and what portion of customers receive the $7,500 tax credit.

Answer

CFO Claire McDonough reported that lease penetration was 42% in Q3 and confirmed that Rivian shares residual value risk with its partner, Chase. She clarified that the $7,500 tax credit is primarily accessed by customers through leasing, as most do not qualify for direct purchases due to vehicle price and income limitations.

Adam Jonas asked about the significant jump in sales to existing customers (to 81%) and whether Ferrari is making changes to the type of personalizations offered to protect residual values from overly customized or 'rainbow-colored' combinations.

Answer

CEO Benedetto Vigna clarified that 40% of sales were to clients already owning more than one Ferrari. Regarding personalization, he explained that while the company advises clients to protect brand values, it cannot ultimately force their choices. He noted that some clients prioritize personal enjoyment over potential residual value and that preferences for 'set menus' versus 'a la carte' options vary globally, making it a delicate balance.

Adam Jonas asked about the market positioning of Ferrari's first all-electric vehicle, specifically whether it's intended as a halo car for existing clients or to attract new customers. He also inquired about the impact of changing CO2 regulations on Ferrari's long-term product strategy.

Answer

CEO Benedetto Vigna deferred specific details on the EV's positioning until its October launch but emphasized it is an 'addition, not a transition' to the lineup, intended for both existing and new members of the Ferrari community. Regarding regulations, he highlighted Ferrari's agility and stated that the company views changing rules as an opportunity to innovate and challenge itself, rather than as a constraint that dictates its product plan.

Asked about the significant increase in sales to existing customers, and whether the company is guiding personalization choices to protect residual values.

Answer

Confirmed 40% of sales were to multi-car owners. The ability to attract new clients remains strong, as seen with the 12 Cilindri. While Ferrari advises on personalization, it ultimately respects client choice, as some prioritize personal enjoyment over maximizing residual value.

Adam Jonas of Morgan Stanley inquired about the competitive nature of the Waymo partnership in Dallas and Avis Budget Group's long-term, 10-20 year strategic vision for its business model in an autonomous vehicle landscape.

Answer

CEO Brian Choi explained that while he couldn't speak for Waymo, Avis had been in discussions with multiple AV parties, suggesting a competitive process. For the long-term vision, Choi stated that the company's core competency of 'mega fleet management' will remain central, expanding from the traditional travel-focused rental market to the much larger autonomous ride-hail and vehicle-miles-driven ecosystem.

Adam Jonas from Morgan Stanley inquired about the competitive nature of the Waymo partnership agreement and Avis Budget Group's long-term (10-20 year) strategic vision for its business model in an autonomous vehicle landscape.

Answer

CEO Brian Choi explained that while he couldn't speak for Waymo, Avis had been in discussions with multiple AV parties, implying a competitive landscape. For the long-term vision, Choi stated that the company's core competency of 'mega fleet management' will remain central, but it will be applied to the much larger addressable market of autonomous ride-hailing and other services related to vehicle miles driven, expanding Avis's footprint in the mobility ecosystem.

Adam Jonas questioned how Mobileye operates with remarkably low capital expenditures for an AI hardware company, asking about its compute strategy and the nature of its simulation stack, including the use of synthetic data for training.

Answer

CEO Amnon Shashua explained that Mobileye has a different, more efficient philosophy on compute spending, using a mix of on-prem GPUs and cloud. He detailed two types of simulation: photorealistic simulation for edge cases and a proprietary, highly efficient synthetic simulator called "Artificial Community Intelligence" (ACI) to train driving policy over billions of miles, which significantly reduces compute needs.

Adam Jonas posed a technical question on whether Generative AI increases the value of dashcam video data and asked if Mobileye is allocating R&D resources to non-automotive markets.

Answer

CEO Amnon Shashua acknowledged the importance of data collection, referencing Mobileye's own next-generation technology for sending low-bandwidth images to the cloud. On diversification, he confirmed that Mobileye is exploring additional growth engines in the 'physical AI space' outside of automotive, but noted it is still in the exploration stage.

Adam Jonas of Morgan Stanley challenged the view that in-house OEM development isn't a trend, citing ZEEKR, and asked about adjacent market opportunities for Mobileye's technology, such as humanoid robotics.

Answer

CEO Amnon Shashua clarified his comment on in-house development referred to Western OEMs, viewing China as a separate case. He dismissed NVIDIA's Kosmos as a major enabler for auto, differentiating the needs of robotics from autonomous driving. Regarding adjacent markets, Shashua acknowledged studying synergies between Mobileye's stack and areas like robotics but stated these explorations are in very early stages.

Adam Jonas posed a strategic question about whether the core ADAS business is primarily funding the R&D for future options like SuperVision and Chauffeur. He asked when a significant step-up in spending might be required and if it would necessitate outside capital.

Answer

CEO Amnon Shashua stated that the current operating expense level of around $1 billion is sufficient to fuel future growth across all product lines, including ADAS, SuperVision, Chauffeur, and Drive. He specified that $600 million of this is for future investments. He does not foresee a material increase in spending, noting the company expects revenue growth and higher operating cash flow in 2025 and has a $1.4 billion cash reserve.

Adam Jonas questioned if Elon Musk's 13% ownership stake is sustainable given Tesla's strategic shift into physical AI and humanoid robots, and asked about the possibility of an AI Day in the second half of the year to attract talent.

Answer

CEO Elon Musk confirmed his ownership stake is a major concern and hopes it will be addressed at the upcoming shareholder meeting. Regarding an AI Day, he noted the trade-off between recruiting benefits and competitors copying their technology, suggesting the annual shareholder meeting could serve a similar purpose and would feature Optimus robots on stage.

Adam Jonas asked Elon Musk to comment on recently announced tariffs in light of his previous advocacy for them. He also asked for an assessment of who is further ahead between the U.S. and China in the development of physical AI, specifically humanoids and drones.

Answer

CEO Elon Musk stated that he is one of many presidential advisors and, while he advocates for lower tariffs, the President makes the final decision. On physical AI, Musk expressed concern that the U.S. is severely dependent on China for drone manufacturing. For humanoid robots, he is confident Tesla is #1 but believes Chinese companies will likely hold ranks 2 through 10.

Adam Jonas of Morgan Stanley asked if Elon Musk still believes LiDAR is a 'fool's errand' for autonomous vehicles and questioned whether the U.S. has the manufacturing base to support the growth of physical AI by the end of the decade.

Answer

CEO Elon Musk reaffirmed his stance against LiDAR for cars, explaining that the world is designed for passive optical systems (like human eyes), making cameras and AI the correct solution. Regarding manufacturing, Musk stated that more talented Americans should move into manufacturing and that Tesla is ensuring its ability to produce its products even amid rising geopolitical tensions.

Adam Jonas asked for clarification on the relationship between Tesla and xAI, addressing investor concerns about potential competition for resources, talent, and executive time.

Answer

CEO Elon Musk stated that xAI has been helpful to Tesla, particularly in scaling training processes, but emphasized they solve different problems. He positioned Tesla as focused on real-world AI with efficient inference compute for cars and robots, while xAI is focused on Artificial General Intelligence (AGI). Head of Autopilot Software Ashok Elluswamy reinforced this, stating that 'not all AI is equal' and the companies are working on different issues. Musk concluded that Tesla's world-class chip design and AI teams are unique.

Adam Jonas asked if Ford is currently seeing any signs of supply chain distress due to tariff volatility and inquired about the evolution of Ford's AI and automation strategy, including humanoid robotics.

Answer

COO Kumar Galhotra explained that while there are no major disruptions yet, policy volatility creates risk, citing rare earth materials as an example. On AI, he stated Ford is not directly working on humanoid robotics but is deploying AI for cost savings in manufacturing and PD, highlighting a Boston Dynamics robot dog used for plant maintenance.

Adam Jonas asked for Jim Farley's view on the long-term effectiveness of U.S. tariffs against Chinese EV makers and questioned Ford's strategy for AI and autonomy, asking if it was time to partner rather than rely solely on in-house efforts.

Answer

CEO Jim Farley stated that while fair government policies on subsidies and data privacy are needed, Ford must ultimately be prepared to compete directly with Chinese OEMs on cost and product appeal. Regarding autonomy, Farley confirmed the internal team is developing a strong Level 2/3 system but acknowledged that Ford is now much closer to making a strategic decision on whether to partner for Level 4 personal autonomy.

Adam Jonas asked about the competitive impact from Chinese automakers in Europe and other regions, requested a breakdown of the $600 million China profit, and asked for a causal breakdown of the $1 billion reduction in the full-year EBIT outlook.

Answer

CFO John Lawler clarified the $600 million profit includes both profitable domestic operations and exports. CEO Jim Farley noted pressure is mainly in the pickup segment. Lawler explained the guidance cut was primarily due to volume and mix headwinds in Ford Blue from supplier constraints, compounding earlier pressures from warranty and inflation in Turkey.

Adam Jonas from Morgan Stanley inquired about Lucid's artificial intelligence strategy, particularly regarding its approach to autonomous driving and potential spending, and asked for clarification on the messaging from its largest shareholder regarding a potential reduction in their stake.

Answer

Interim CEO Marc Winterhoff stated that Lucid is improving its current ADAS and plans a hands-free driving rollout this year. For full autonomy, the company is evaluating partnerships versus in-sourcing, recognizing that the technology landscape has shifted. SVP of Finance Gagan Dhingra addressed the shareholder question by stating the current ownership percentage is 58.4% and that he was unaware of any agreements for the shareholder to reduce its stake.

Adam Jonas asked a long-term strategic question about Aptiv's diversification into adjacent markets like aerospace & defense and other non-automotive total addressable markets (TAMs).

Answer

CEO Kevin P. Clark confirmed that diversification is a key strategic priority. He detailed that the aerospace and defense business is currently around $400 million in revenue and growing fast. He also highlighted energy distribution and robotics/humanoids as other exciting growth areas where Aptiv's perception systems, vehicle architecture, and Wind River software have direct applications, noting they are actively working with customers in these fields.

Adam Jonas asked about potential headwinds to EBITDA margin in Q4 beyond seasonality and bonuses, and requested quantification of savings from reduced shipping distances.

Answer

CFO Mark Jenkins cited typical Q4 seasonality, including lower used car demand and higher depreciation rates, as factors affecting margins. He also pointed to two Q3 tailwinds in Other GPU totaling ~$250/unit that are not expected to repeat. CEO Ernie Garcia added that while specific savings weren't quantified, average delivery time is down 25% year-over-year, demonstrating efficiency gains.

Adam Jonas from Morgan Stanley pressed management on the company's significant stock underperformance relative to the S&P 500, questioning its capital allocation strategy and why it is not prioritizing share buybacks given the low valuation.

Answer

CEO Seetarama Kotagiri acknowledged the market's pivot and defended long-term capital allocation for secular trends like EVs, while emphasizing the company's flexibility to reduce spending, as demonstrated by recent cuts. Regarding buybacks, he stated they are a top investment priority but are contingent on first achieving the company's target leverage ratio following the Veoneer acquisition. He indicated a plan could be discussed around the October/November timeframe.