Edison Yu

Edison Yu inquired about Viasat's S-band spectrum in Europe, specifically its future intentions given that some or all of it comes up for renewal in 2027, and whether Viasat expects to retain it. He also asked for a dimension of the potential growth or sales bump once Viasat 3 Flight 2 and Flight 3 are fully operational.

Answer

Chairman and CEO Mark Dankberg explained that the S-band spectrum in Europe originated from a specific program, and Viasat, through the Inmarsat acquisition, is a holder of a spectrum grant. He noted an ongoing EU process to allocate this spectrum post-2027, and Viasat has submitted an application, making a strong case for its continued stewardship based on past commitments and future plans for ground systems, space assets, and user terminals. For Viasat 3 Flight 2 and Flight 3, Dankberg stated that together they would roughly triple Viasat's bandwidth capacity. He explained that monetization depends on the mix of services and demand locations, with F2 in the Americas and F3 in Asia-Pacific. He also mentioned additional Inmarsat satellites (GX7, 8, 9) for EMEA and contracted bandwidth from third parties and LEO systems. Dankberg emphasized that the per capita growth in bandwidth demand and the strategy of using fixed services as a buffer while migrating to higher-value mobility services will determine how this bandwidth translates into revenue.

Edison Yu inquired about Viasat's S-band spectrum in Europe, its future intentions, the upcoming renewal in 2027, and the allocation process. He also asked for a way to dimension the potential growth or sales bump once ViaSat-3 Flight 2 and Flight 3 are fully operational, considering they will triple bandwidth, and how this will be monetized across service mixes, high-demand areas, and with additional Inmarsat satellites (GX7, 8, 9) and third-party bandwidth.

Answer

Mark Dankberg, Chairman and CEO, explained that Viasat, through the Inmarsat acquisition, holds an S-band spectrum grant in Europe, and has submitted an application for renewal post-2027, making a strong case for continued stewardship. Regarding ViaSat-3 Flight 2 and Flight 3, he noted that together they would roughly triple Viasat's bandwidth. Monetization depends on the mix and location of services, with a focus on fulfilling service-level agreements and addressing bottlenecks. He highlighted significant growth runway, especially in mobility services, with F2 in the Americas, F3 in Asia-Pacific, and GX7, 8, 9 for EMEA, along with third-party and LEO bandwidth, while managing per capita bandwidth demand.

Edison Yu asked whether the undervaluation of the Defense and Advanced Technologies (DAT) segment is a perception or structural issue, what role Viasat might play in the 'Golden Dome' initiative, and what drove the strong EBITDA margin in Communication Services despite flat revenue.

Answer

CEO & Chairman Mark Dankberg responded that the company's focus is on increasing future cash flows and that the portfolio review considers synergy, capital needs, and investor value propositions. He identified Viasat's potential role in Golden Dome in areas like cryptography and hybrid networking. CFO Gary Chase attributed the strong margin performance to timing benefits and a favorable business mix, especially in aviation terminal deliveries.

Edison Yu of Deutsche Bank asked for an update on the potential sale of assets within the Defense and Advanced Technologies (DAT) segment and inquired about the company's framework for monetizing its L-band spectrum, whether through sale or deployment.

Answer

CEO Mark Dankberg confirmed Viasat is actively evaluating options for its DAT assets with the primary goal of reducing debt and unlocking equity value, but declined to comment on specific transactions. Regarding L-band, Dankberg explained the company is modeling various monetization options, including improving its existing MSS business, participating in the D2D market, and potentially monetizing parts of the spectrum, balancing development against outright sale.

Edison Yu asked about the design of the hybrid aircraft for defense, specifically whether it involves adding an engine to the existing airframe, if the airframe requires redesign, and potential complications for the supply chain.

Answer

Paul Sciarra (Executive Chairman) explained that the approach aligns with dual-use principles, leveraging the proven airframe and existing manufacturing lines. He described the hybrid as a variant of the current vehicle, missionized for defense applications, noting the rapid three-month pace from concept to demonstration due to this strategy, which avoids extensive retooling and meets the defense sector's demand for quick deployment of new technology.

Edison Yu asked about the company's capital runway following its recent capital raises and requested details on the improvements made to the latest aircraft prototype that was flown in Japan.

Answer

Founder and CEO JoeBen Bevirt stated that the new capital extends the company's runway considerably but did not provide a specific timeline, emphasizing the strength of the balance sheet. He also explained that while each new aircraft incorporates manufacturing and performance improvements, all prototypes are capable of similar missions, with minor variations for instrumentation or payload.

Edison Yu asked for assumptions behind the expectation that next year's tariff impact would be similar to 2025, and inquired about the thinking behind Model e investment and Skunk Works efforts, particularly regarding the next-gen EV platform given evolving market realities.

Answer

Sherry House, CFO, explained that a recent proclamation provided a $1 billion benefit by allowing greater MSRP tariff offset to parts, making the net 2025 impact $1 billion and enabling a similar impact for 2026, primarily leaving auto parts, steel, and aluminum tariffs. Jim Farley, President and CEO, stated the EV platform is designed for lowest possible cost and multiple top hats, targeting affordable commuter vehicles in the heart of the future EV market, anticipating increased adoption and evolving regulations from 2027-2035.

Edison Yu asked for assumptions behind the expectation that next year's tariff impact would be similar to 2025, despite recent policy changes. He also inquired about the future of Model e investment and Skunkworks efforts, particularly in light of evolving EV market realities and the next-gen EV platform.

Answer

CFO Sherry House explained that a recent proclamation provided a $1 billion benefit, allowing Ford to offset more parts tariffs, leading to a net $1 billion impact for 2025 and a similar impact for 2026. The remaining tariffs will be on auto parts without offset (steel, aluminum) and vehicle import tariffs not covered by U.S. content offset. President and CEO Jim Farley stated that the EV platform is designed for the lowest possible cost and multiple top hats in one facility, targeting affordable commuter vehicles for the evolving North American EV market in 2027-2035, expecting adoption to increase over time.

Edison Yu asked for more detail on the pricing weakness in the commercial fleet segment and its expected trend. He also inquired about what a Ford Pro service offering for autonomous fleets might look like and if it precludes Ford from producing its own integrated autonomous vehicle.

Answer

President Andrew Frick clarified that commercial pricing weakness was concentrated in the van segment due to competitive pressure but has now stabilized, while full-size pickup pricing remains strong. CEO James Farley described the L4 autonomous service opportunity for Ford Pro as 'quite intriguing' for fleet management and maintenance, noting it's a logical extension of Pro's capabilities, though it's still early days.

Edison Yu asked about Iridium's strategic options, including the timeline and types of targets for M&A, and whether Iridium would consider being part of another solution or partnering with a big tech company for D2D capabilities.

Answer

CEO Matthew J. Desch stated that M&A will be a bigger focus, looking for complementary areas, but specific timing is not within their control. He also noted that Iridium would be open to being part of another solution if it maximizes shareholder value, acknowledging that larger players with strategic ability are new to the industry.

Edison Yu asked about Iridium's strategic options, specifically the timeline for M&A actions, whether the company is accelerating existing M&A pipelines or seeking new types of targets, and if Iridium would consider being part of another solution, such as a big tech company's D2D efforts.

Answer

CEO Matt Desch indicated that M&A will be a bigger focus going forward, looking for complementary areas to accelerate revenues and growth, though specific timing is not within their control. Regarding being part of another solution, Mr. Desch stated it would be sensible if it maximized shareholder value, acknowledging Iridium's important spectrum position for global D2D, but noted it's a decision for others to make.

Edison Yu from Deutsche Bank sought clarification on whether the estimated tariff impacts of $3 million and $6-7 million were for a partial or full year. He also inquired about how geopolitical shifts might affect the L-band MSS market and asked for the latest update on the ramp-up of Aviation Certus.

Answer

CEO Matt Desch clarified the $3 million tariff impact is for roughly three-quarters of the year, while the $6-7 million is the total potential impact for the year, not an incremental amount. He stated that Iridium is viewed as a global, trusted player and is even being embedded in EU-centric solutions as a backup, mitigating geopolitical risks. Regarding Aviation Certus, he noted it's currently in flight trials for safety certification, with approval expected early next year, while non-safety applications are ramping up now.

An analyst from Deutsche Bank, identified as Edison Yu, asked if the current broadband ARPU is a good run rate, inquired about the timeline and contribution of the new aviation service, and sought confirmation on the growth trajectory for a key IoT customer in 2025 and 2026.

Answer

CFO Tom Fitzpatrick attributed the sequential broadband ARPU improvement to seasonality. CEO Matt Desch stated the new aviation product is in final certification trials, with aircraft installations expected to begin in 2025, providing good ARPU. Fitzpatrick confirmed the major IoT customer's revenue is contractually set to increase in 2025 and is expected to grow again in 2026 based on their expanded product portfolio.

Edison Yu inquired about Firefly's M&A strategy, including the types of assets of interest and the potential size and scope of acquisitions. He also asked for elaboration on the reference to RG-XX in relation to Elektra, specifically whether it serves as a template for future programs. Finally, he sought clarification on whether the $10 million addendum for Blue Ghost Mission 1 would be recognized as revenue in Q3.

Answer

CEO Jason Kim explained that M&A targets must align with Firefly's strategy, culture, and provide synergies to existing product lines. Regarding RG-XX, Mr. Kim clarified it's a follow-on to the GSSAP program, with an acquisition decision memo opening competition to commercial providers. He highlighted Elektra's DIU contract for space domain awareness and its capabilities (fuel, thrust, maneuverability, payload capacity) as well-suited for RG-XX. CFO Darren Ma confirmed that the $10 million addendum for Blue Ghost Mission 1 was planned and would be recognized in Q3.

Edison Yu inquired about Firefly's M&A strategy, including the types of assets being vetted and the potential size and scope of such transactions, following the recent capital raise. He also asked for elaboration on the reference to RGXX in relation to Elektra, specifically whether it serves as a template for future programs. Lastly, he sought clarification on the revenue recognition timing for the $10 million NASA addendum for Blue Ghost Mission 1.

Answer

CEO Jason Kim outlined Firefly's M&A criteria: fitting the company's strategy and culture (can-do spirit, speed, collaboration, technology, innovation), and providing synergies to existing product lines. Regarding RGXX, Mr. Kim explained that Elektra's capabilities (ample fuel, high thrust, payload capacity) are well-suited for the next-generation RGXX mission, building on a recent DIU contract for Elektra Mission 3 to perform space domain awareness. CFO Darren Ma confirmed that the $10 million NASA addendum for Blue Ghost Mission 1 is planned for recognition in Q3 revenue.

Edison Yu of Deutsche Bank requested a rough roadmap for Archer's activities in the UAE over the next 12 to 18 months, with a specific focus on the progression of flight testing.

Answer

Chief Technology Officer Tom Muniz explained that following initial high-temperature tests, more flying will occur in the UAE in the second half of the year to parallel FAA and GCAA certification efforts. Founder, CEO & Chairman Adam Goldstein added that the roadmap includes growing the fleet, obtaining commercial authority from the GCAA, conducting exhibition flights on planned routes, and ultimately launching full commercial service.

Edison Yu of Deutsche Bank asked about the potential revenue scale of the 'Launch Edition' program and the go-to-market strategy for the AI software platform being developed with Palantir.

Answer

CEO Adam Goldstein indicated that 'Launch Edition' revenue potential is significant and primarily a function of manufacturing capacity, though the immediate focus is on safe deployment and learning. Regarding the AI platform with Palantir, Goldstein outlined a two-pronged strategy: optimizing Archer's own manufacturing and developing monetizable aviation infrastructure software for the broader industry.

Edison Yu of Deutsche Bank inquired about AAM's latest thinking on the European market, where its exposure will significantly increase post-Dolly acquisition, considering the market and regulatory backdrop. He also asked if the timing of the shareholder vote for the deal was ahead of schedule.

Answer

Chairman & CEO David Dauch acknowledged that the European market is currently challenged but stated that Dahle is well-positioned and its restructuring is nearly complete, making it an opportune time for the acquisition. He noted the combined entity will be well-positioned to serve the market and optimize its footprint. Dauch also confirmed the shareholder vote timing was on track with their plan.

Edison Yu from Deutsche Bank inquired about AAM's strategy for the European market given its increased importance after the Dallee acquisition, and also asked if the shareholder vote for the deal occurred ahead of schedule.

Answer

CEO David Dauch acknowledged Europe's market challenges but expressed confidence, noting Dallee is well-positioned and its restructuring is nearly complete, making the acquisition timely. He also confirmed that the shareholder vote timing was on track with the company's original schedule.

Edison Yu of Deutsche Bank inquired about the strategy for in-house satellite production, including potential for external customers and the desired level of vertical integration. He also asked about the potential timing and value of a future Mars mission.

Answer

CEO Steve Altemus explained that building a capable satellite bus in-house opens opportunities to serve other customers, replace aging Mars infrastructure, and compete for the TDRS replacement. He noted the company aims for a high degree of vertical integration, similar to the 85% achieved on its landers. Regarding Mars, he stated the commercial model is the appropriate path and that precursor missions around the moon will position them to be cost-efficient and ready when NASA proceeds.

Edison Yu of Deutsche Bank asked for the company's view on its reentry vehicle, its differentiation strategy in the orbital transfer vehicle market, and its vision for the development of nuclear propulsion technology.

Answer

CEO Steve Altemus explained that their Zephyr reentry vehicle is a unique lifting body capable of precise, soft runway landings, differentiating it from ballistic capsules. He also detailed work on the JETSON program for stealth-like satellites and its application to future lunar surface power reactors.

Edison Yu of Deutsche Bank inquired about the company's plans for deploying its significant cash balance, including its M&A pipeline, and asked about potential opportunities in the defense and national security space sector.

Answer

CEO Steve Altemus explained that the company is continuously reviewing opportunistic M&A to address supply chain gaps or vertically integrate, while also investing in internal R&D like advanced propulsion. He identified national security space as a key growth area, with opportunities in space domain awareness and data relay services leveraging the company's developing lunar network.

Edison Yu questioned the pricing and usage dynamics for Telesat Lightspeed, particularly in the aero and government sectors, and how current discussions compare to internal models. He also asked about the company's strategy for the maritime market and for an outlook on the GEO segment's cash flow generation capabilities in the coming years.

Answer

President & CEO Daniel Goldberg responded that pricing in closed Lightspeed deals and ongoing discussions is 'consistent with or higher than' the company's internal model, with the most concrete traction currently in aero and government due to their longer planning cycles. He affirmed that Telesat will 'absolutely' pursue the maritime market, which is a strong fit for LEO. Goldberg also stated that the GEO segment is highly cash-flow positive and will remain so for the foreseeable future, given its substantial backlog and low CapEx, unless a new GEO satellite investment is made.

Edison Yu of Deutsche Bank requested details on the reduction in the equity income guidance and asked about the expected timeline for Adient to achieve market parity in China, given its new business wins with local OEMs like BYD.

Answer

Mark Oswald, EVP & CFO, attributed the lower equity income guidance to a renegotiated pricing agreement within the Kuiper joint venture and foreign exchange impacts. Jerome Dorlak, President, CEO & Director, stated that returning to market parity in China is expected in the second half of 2026 or 2027, contingent on the launch cadence and market performance of local Chinese OEM partners.

Edison Yu of Deutsche Bank inquired about the specific missions and use cases for the defense market, the company's confidence in achieving full piloted transition by year-end, and requested a preview of topics for the upcoming Investor Day.

Answer

CEO Stuart Simpson detailed that the hybrid aircraft's capabilities, including silent takeoff and a 1,000-mile range, open up numerous defense missions like logistics and troop transport. He affirmed the company is on track for a Q4 full transition, noting the remaining work is a small data-gathering phase. For the Investor Day, he teased updates to financial models, details on the battery business, certification costs, and manufacturing plans, with Lord Parker speaking on the defense opportunity.

Edison Yu of Deutsche Bank inquired about the specific missions and use cases for Vertical Aerospace's defense strategy, the potential hurdles for achieving full piloted transition by year-end, and requested a preview of topics for the upcoming Investor Day.

Answer

CEO Stuart Simpson detailed military use cases like logistics and troop transport, leveraging the VX4's silent operation and the hybrid's range and payload. He affirmed the company is on track for a Q4 full transition, with current testing focused on gathering data for the 30-70 knot flight phase. For the Investor Day, he confirmed updates on financials, the hybrid opportunity, the battery business model, and certification costs.

Edison Yu of Deutsche Bank inquired about the specific missions and use cases for the VX4 in the defense sector, the biggest hurdles to achieving full piloted transition by year-end, and the topics to be addressed at the upcoming Investor Day.

Answer

CEO Stuart Simpson highlighted the significant opportunity in the European defense market, citing missions like logistics and troop transport enabled by the VX4's silent operation and hybrid range. He confirmed the company is on track for full transition in Q4, explaining the current focus is on gathering data for the 30-to-70 knot flight phase. For the Investor Day, Simpson teased updates on financials, the hybrid opportunity, battery strategy, certification costs, and manufacturing plans.

Edison Yu from Deutsche Bank requested a breakdown of the drivers behind the expected margin weakness in Q3 relative to Q2. He also asked if Autoliv has experienced increased stringency from OEMs on supplier terms.

Answer

CFO Fredrik Westin explained that the Q3 margin weakness is primarily due to lower production volumes, following typical seasonality with an expected 1 million unit drop from Q2. CEO Mikael Bratt responded that negotiating terms and conditions is a regular part of business and not a specific new area of pressure from customers.

Edison Yu of Deutsche Bank asked about the vehicle mix impact embedded in the 2025 outlook and sought details on the decline in 2024 order intake, specifically regarding the timing and nature of delayed platform sourcing.

Answer

CFO Fredrik Westin clarified that Autoliv expects a negative mix impact of approximately 1 percentage point in 2025, an improvement from the 2-3 percentage point negative impact seen in 2024. Regarding order intake, Westin explained that the low sourcing activity was due to OEM uncertainty around both drivetrains and production locations. He noted that several large platforms where Autoliv is the incumbent have been delayed into 2025, with sourcing now expected in the first half of the year.

Edison Yu from Deutsche Bank inquired about Planet's AI strategy, specifically its partnership with Anthropic and the quantity and diversity of data required to effectively train large language models.

Answer

CEO Will Marshall explained that the Anthropic partnership focuses on fine-tuning models with Planet's unique satellite data, which is largely absent from internet-scraped datasets. He clarified this is distinct from Planet's core AI work on solutions like Maritime Domain Awareness (MDA) and aims to expand usability and market potential by making the data more accessible.

Edison Yu asked about the impact of geopolitical uncertainty on international customer discussions and the role of AI as a primary driver for customer engagement.

Answer

CEO Brian O'Toole responded that despite geopolitical dynamics, demand remains strong as national security is a top priority, and the pipeline is growing. He added that AI has become a critical capability for customers needing to process the high volume of data from Gen-3 satellites, marking a significant shift in conversations over the past 9-12 months.

Edison Yu sought to understand the drivers of the 30% revenue growth forecast for 2025, asking for a breakdown between new and existing contracts. He also questioned the company's capital needs and whether a capital raise would be necessary, and asked about the expected timing for recognizing Gen-3 revenue.

Answer

CEO Brian O'Toole explained that much of the 2025 growth is driven by the expansion of existing contracts and a strong backlog, with new customer revenue expected to ramp in the latter half of the year. CFO Henry Dubois affirmed that the company has sufficient liquidity—citing over $80 million in cash, vendor financing, and expected milestone payments—to fund the deployment of 12 Gen-3 satellites and reach positive free cash flow without needing to raise additional capital, though they could be opportunistic.

Speaking on behalf of Edison Yu, Winnie Young asked for a breakdown of the guided 200-400 basis points of market outgrowth between foundational and eProducts, and inquired about the current M&A pipeline and strategy.

Answer

Executive Craig Aaron responded that the company does not provide a breakout of market outgrowth by product type. CEO Joseph Fadool addressed M&A, stating that while the company remains active, the criteria for acquisitions have been raised to require clear industrial logic, near-term accretion, and disciplined valuation. He noted that several potential targets have already been passed on for not meeting these criteria, and that the company's strong cash position allows for flexibility, including share buybacks.

Edison Yu inquired about the status of discussions for Extended-Range Electric Vehicles (EREVs) in the U.S. and Europe, and whether the China guidance assumes the continuation of scrappage incentives.

Answer

CEO Joseph Fadool noted that regions outside of China are beginning to explore EREVs, particularly for trucks, but significant volumes are not expected yet. He also clarified that the company's forecast for a flattish market in China does not factor in any potential government scrappage incentives.

Edison Yu sought confirmation on whether the current tariff regime would impact the R2's planned start of production or its targeted $45,000 starting price. He also asked for the company's latest thoughts on the economics of its autonomy platform, including development costs and monetization strategies.

Answer

CEO Robert Scaringe affirmed that Rivian is not planning changes to the R2's $45,000 starting price, emphasizing the company's focus on localizing its supply chain to mitigate policy impacts. On autonomy economics, Scaringe explained that while it's a key value driver, it's yet to be seen how that value will be harvested—whether through incremental paid features, higher vehicle pricing, or increased market share, noting different approaches in the U.S. versus China.

Edison Yu inquired whether the R2 sourcing strategy accounts for potential tariff changes and asked about the sustainability of the recent operating expense reduction.

Answer

CEO RJ Scaringe explained that the R2 sourcing strategy was designed to mitigate tariff risk by focusing on suppliers not subject to them and structuring contracts to limit exposure. CFO Claire McDonough noted that while Q4 OpEx may see a slight uptick for R2 investment, the overall trend is toward efficiency, with full-year 2024 cash OpEx expected to be below 2023 levels.

Speaking on behalf of Edison Yu, an analyst asked for an update on the company's performance improvement targets and the potential for incremental benefits. A second question focused on the revenue mix in China, the reasons for underperforming market growth in Q1, and the expected impact from a key EV customer for the full year.

Answer

CFO Varun Laroyia and CEO Kevin P. Clark confirmed strong progress on performance initiatives in Q1, driven by manufacturing, engineering, and SG&A cost controls, which are offsetting labor inflation. Regarding China, Clark reiterated that Q1 growth was muted by a production decline at a single large EV customer. He stated that Aptiv is not providing full-year guidance but expects its revenue mix to shift towards 70% from local Chinese OEMs by year-end, reflecting recent booking trends.

A representative for Edison Yu asked about the potential for relocating manufacturing facilities in response to sustained tariffs and inquired about Q1 BMS sales and the new European BMS win.

Answer

CEO Sachin Lawande stated that while Visteon is capable of adjusting its manufacturing footprint, no major decisions will be made until there is more clarity on tariffs. He explained that BMS sales were expected to be lower due to high channel inventory and a planned customer factory shutdown. The new European BMS win was described as a high-profile, competitive award that validates Visteon's technology and cost position in power electronics.

Edison Yu inquired about the performance threshold required for U.S. robotaxi deployments with partners like Uber and Lyft, and asked if liability issues have been resolved.

Answer

CEO Amnon Shashua confirmed they have clear metrics with customers to demonstrate 'superior to human level performance' and are on track to meet them. He also stated that the performance threshold is the same for both major partners and that liability aspects have been sorted out.

Edison Yu, under the name Xin Yu in the transcript, questioned the company's confidence in the timing and take-rates for major program launches in 2026. He also asked for details on the performance thresholds for interventions (MTBI) and the technology roadmap to achieve them for different levels of autonomy.

Answer

Executive Daniel Galves expressed confidence in meeting the H2 2026 launch milestones, stating the project is on track. An executive, likely CEO Amnon Shashua, explained that the current SuperVision system has an intervention rate of about 10 hours, with the next-generation EyeQ 6 targeting 1,000 hours for the camera subsystem alone. He stated that a credible eyes-off system will ultimately require tens of thousands of hours between interventions.

Edison Yu of Deutsche Bank inquired about the weakness in the Commercial Vehicle segment during the quarter and the expected timing for a turnaround. He also asked if the strong Light Vehicle performance provides a solid foundation for 2025.

Answer

CFO Timothy Kraus attributed the Q4 Commercial Vehicle weakness to one-time items, including EV-related bad debt and a warranty adjustment, and expects a turnaround to begin in Q1 driven by cost savings. He affirmed that Light Vehicle is expected to see continued profit and margin growth in 2025 as production stabilizes and cost-saving benefits are realized. CEO R. McDonald noted that timing of customer recoveries can create some lumpiness.

Edison Yu inquired about the status and market reception of the strategic review for the Chemicals business. He also asked about the strong margin performance in the Asia Pacific (APAC) segment and whether the Oklahoma plant expansion was a mitigation strategy for potential tariffs.

Answer

An executive stated the Chemicals business review remains in process with broad interest from both strategic and private equity buyers. CEO Mark Stewart attributed the strong APAC margin to operational excellence, strong pricing, and new product success, particularly in EVs, rather than any one-off benefits. He also clarified the Oklahoma plant expansion is a necessary modernization for premium tire capacity and not a direct reaction to potential tariffs.

Edison Yu from Deutsche Bank asked for a timeline on Cruise's return to unsupervised testing and inquired about the potential need to provide material funding to the China joint venture if losses persist.

Answer

Chair and CEO Mary Barra stated the goal is for Cruise to resume unsupervised testing by year-end, contingent on meeting a higher safety standard. Regarding China, she emphasized the focus is on creating a self-sustaining business through restructuring actions decided with their JV partner, and she deferred further comment pending those discussions.