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    John Babcock • BofA Securities

    John Babcock's questions to Avis Budget Group Inc (CAR) leadership

    John Babcock's questions to Avis Budget Group Inc (CAR) leadership • Q1 2025

    Question

    John Babcock inquired about the operational requirements for maintaining high vehicle utilization rates and the potential impact of automotive tariffs on the company's model year 2026 fleet acquisition strategy.

    Answer

    CEO Joseph Ferraro explained that the company's strategic fleet rotation and new digital tools for fleet management are key to sustaining high utilization. He noted that the accelerated fleet refresh provides flexibility and optionality for the 2026 model year buy, allowing them to navigate potential price changes from tariffs by leveraging intensive modeling and their position as a volume buyer.

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    John Babcock's questions to Avis Budget Group Inc (CAR) leadership • Q4 2024

    Question

    John Babcock from Bank of America inquired about the expected quarterly cash flow cadence for 2025 and asked if the accelerated fleet rotation involved a change in vehicle mix that could affect revenue per day (RPD) or earnings.

    Answer

    Chief Financial Officer Izilda Martins stated that with at least $1 billion in adjusted EBITDA and positive working capital, 2025 free cash flow is expected to be 'really, really solid.' Chief Executive Officer Joseph Ferraro clarified that the fleet mix is not changing; the strategy is focused on aggressively replacing higher-cost model year '23 and '24 vehicles, not shifting to smaller cars, as fleet composition is driven by customer demand.

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    John Babcock's questions to Avis Budget Group Inc (CAR) leadership • Q3 2024

    Question

    John Babcock asked about the net financial impact of the recent hurricanes on Q4 results and the company's ability to maintain pricing discipline as fleet costs normalize.

    Answer

    CEO Joseph Ferraro explained that while hurricanes initially disrupt business via airport closures, they ultimately drive demand from relief efforts and replacement rentals, which tightens fleet supply. He expressed confidence in sustaining pricing power through a strict focus on margins and various cost-saving initiatives, including productivity systems and connected car technology, noting that overall industry pricing has shown stability.

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    John Babcock's questions to Luminar Technologies Inc (LAZR) leadership

    John Babcock's questions to Luminar Technologies Inc (LAZR) leadership • Q1 2025

    Question

    John Babcock of Bank of America inquired about any new customer developments, the expected completion timeline for 'Halo' product investment, and the key drivers behind the improved operating expense guidance.

    Answer

    CFO Tom Fennimore described the Halo investment as being in the 'middle innings' with a launch timeline still targeted for late 2026 or early 2027. He attributed the improved OpEx guidance to the full realization of cost-saving actions announced in the previous year and confirmed they are making good progress with customers on Halo development.

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    John Babcock's questions to Luminar Technologies Inc (LAZR) leadership • Q3 2024

    Question

    John Babcock sought clarification on the new Advanced Development Contract, asking if it was with an existing partner. He also asked about the launch timeline for the new Volvo model featuring Luminar and whether it would use Iris or Halo technology, and requested an early outlook for 2025 volumes.

    Answer

    CFO Tom Fennimore confirmed the development contract represents the next phase with an existing partner, moving them closer to series production. CEO Austin Russell stated the new Volvo model will use the Iris family of LiDAR, with more details expected in H1 2025, and reiterated the Halo launch is planned for 2026. Tom Fennimore deferred providing a 2025 outlook until the year-end call.

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    John Babcock's questions to Polestar Automotive Holding UK PLC (PSNY) leadership

    John Babcock's questions to Polestar Automotive Holding UK PLC (PSNY) leadership • Q1 2025

    Question

    John Babcock inquired about the potential impact of U.S. tariffs on demand, whether Polestar would adjust its supplier base or shift its sales focus geographically, the progress of its transition to a dealer-based commercial strategy, and for specific examples of business efficiency improvements.

    Answer

    CEO Michael Lohscheller explained that while the U.S. is a growth market with localized production, the primary focus remains on Europe, which constitutes 75% of volume. He noted the dealer transition is progressing well and is a key factor in Q1's success. CFO Jean-François Mady added that efficiency gains are being realized through headcount reductions and improved working capital management, particularly by reducing vehicle inventory.

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    John Babcock's questions to Polestar Automotive Holding UK PLC (PSNY) leadership • Q4 2024

    Question

    John Babcock of Bank of America questioned the growth plans for Polestar's retail footprint, sought further details on the upcoming Polestar 7, and asked about the key levers for achieving positive adjusted EBITDA in 2025.

    Answer

    CEO Michael Lohscheller detailed plans to expand the retail network from approximately 140 locations to around 300. He confirmed the Polestar 7 will be a compact SUV for a large global segment but deferred on specifics. Lohscheller and CFO Jean-Francois Mady identified the main drivers for 2025 positive adjusted EBITDA as volume growth, a richer product mix toward Polestar 3 and 4, and significant cost reductions across product, R&D, and SG&A, noting a 25% headcount reduction has already occurred.

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    John Babcock's questions to Ferrari NV (RACE) leadership

    John Babcock's questions to Ferrari NV (RACE) leadership • Q1 2025

    Question

    John Babcock, on for John Murphy, sought clarification on the 50 basis point margin risk from U.S. tariffs and asked about the consumer reception and geographic demand for the new Dodici Cilindri.

    Answer

    CFO Antonio Picca Piccon described the 50 bps as a potential risk that depends on several moving parts, with opportunities for offsets. CEO Benedetto Vigna reported that the Dodici Cilindri has seen a very good reception across all geographies, though its appeal is naturally lower in high-tax regions like China.

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    John Babcock's questions to Mobileye Global Inc (MBLY) leadership

    John Babcock's questions to Mobileye Global Inc (MBLY) leadership • Q3 2024

    Question

    John Babcock asked if the competitive environment becomes less intense as the level of autonomy increases from L2 to L4/L5. He also requested the SuperVision volume number for the third quarter.

    Answer

    CEO Amnon Shashua agreed that competition should decrease at higher levels of autonomy because achieving the required safety and precision at a consumer-level cost is hugely challenging. He cited recent low safety ratings for a competitor's entry-level system as evidence of this complexity. Executive Daniel Galves confirmed that Q3 SuperVision volumes were approximately 30,000 units.

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