AD #4162 – GM Earnings Plunge, But Stock Goes Up; U.S. & Australia Sign Rare Earth Deal; Musk Says Pay Me Or I’m Out

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

TRUMP ADMINISTRATION GIVES OEMs TARIFF RELIEF
The U.S. auto industry has been hit hard by tariffs, so now the Trump Administration is providing some relief. Automakers can get a tariff off-set that’s equal to 3.75% of the price of a vehicle assembled in the U.S. So, for a $50,000 vehicle, that’s a tariff off-set worth $1,875. While that was already announced, it was only going to be in place for two years. Now, the Administration is extending that for 5 years. Moreover, the same 3.75% tariff-offset will apply to engines assembled in the U.S. And the Administration is also going to cut the tariffs on some aluminum and steel imported from Canada and Mexico. They currently face a 50% tariff, but that should now drop to 25%.

  

U.S. SIGNS RARE EARTH DEAL WITH AUSTRALIA
As China clamps down on exports of rare earth minerals, automakers are scrambling for alternate sources. Today, there isn’t much available. China dominates the mining and processing of rare earths. But the Trump Administration just signed a deal with Australia where the U.S. and Australia will each invest $1 billion to expand mining and processing for rare earths in Australia. Automakers will likely continue to face shortages if China continues to restrict exports, since it could take several years before the Australian supply chain comes up to speed.

GM EARNINGS PLUNGE, STOCK PRICE UP SHARPLY
General Motors posted its third quarter earnings. Even though GM’s bottom line took a big hit because of its $1.6 billion EV write-off and the cost of tariffs, Wall Street loved what it saw. GM stock was up more than 6% in pre-market trading. Let’s get to the numbers. GM sold 977,000 vehicles in the last three months, down by 56,000. That brought more than $48 billion in revenue, down a fraction from last year. It posted an operating profit of $1 billion, down more than 70% and a net profit of $1.3 billion, down more than 56%. Obviously, investors were looking past these numbers and focused on GM’s announcement that it’s raising its guidance for the year. It previously forecast net profits of $10 to $12.5 billion. Now it’s upped that to $12 to $13 billion. And that’s what investors like to see.

GM Q3, 2025 Earnings
Sales	977,000	-5.4%
Revenue	$48.5 Billion	-0.3%
Operating Profit	$1.0 Billion	-70.5%
Net Profit	$1.3 Billion	-56.5%

CALT PROFITS UP 41%
CATL, the giant Chinese battery maker also reported its Q3 earnings. Net profits shot up 41%, hitting $2.6 billion. That’s pretty impressive considering its revenue grew 13%, hitting $14.6 billion. And investors love these numbers. CATL’s stock is up 40% this year.

NO NEW PRODUCT FOR ALFA ROMEO UNTIL 2027
Alfa Romeo revealed the refreshed version of the Tonale earlier this month. But that’s the only new model the brand will have for some time. Alfa’s CEO says it won’t have any new product until the end of 2027 because it scrapped plans to go EV-only by 2030. Stellantis CEO Antonio Filosa will unveil a new strategic plan for Alfa in the first half of next year that will include new products as well as new internal and dealer organizations. Alfa’s sales in the U.S. have been slowed by tariffs. Through September, the brand has only sold about 4,800 vehicles, down 30% from last year. But over in Europe, Alfa is having more success. Through August, it sold 41,200 vehicles, up 37% from a year ago. (Refreshed Alfa Romeo Tonale Pictured)

ANOTHER ADVISOR AGAINST MUSK’S $1 T PAY PACKAGE
Another proxy advisor to shareholders is urging Tesla investors to vote against Elon Musk’s $1 trillion pay package. Glass Lewis is joining Institutional Shareholder Services in being concerned over the size of the pay and the design of the plan. Tesla responded to Glass Lewis saying it’s “misguided” and ignores the company’s strong financial results under Musk’s leadership. But as we reported yesterday, these proxy advisors might not have much sway with shareholders. In 2018, both Glass Lewis and ISS also recommended that investors reject Musk’s pay package at the time, but three-quarters of shareholders voted for it anyway.

      

MUSK SAYS PAY ME OR I’M OUT
But if shareholders do listen to the recommendation and reject Musk’s pay package, Elon is not so subtly hinting he could leave Tesla. Some investors are concerned that the package still allows Musk to potentially earn tens of billions of dollars without meeting most of the plan’s targets. Responding to a commentator on X, who was voicing that concern, Musk said “Tesla is worth more than all other automotive companies combined. Which of those CEOs would you like to run Tesla? It won’t be me.” Who knows how serious he is but Elon has also threatened in the past to make products outside Tesla if he doesn’t receive more equity in the company.

NISSAN’S NEW FRONTIER DEVELOPED IN CHINA
Nissan is really leveraging Chinese partnerships to launch new models. The automaker created a new R&D center in China that’s developing new light commercial vehicles for Nissan that are electrified, like the plug-in hybrid version of the Frontier that it unveiled at the Shanghai auto show in April. One advantage of these partnerships is increased speed and Nissan is already taking orders for that new version of the Frontier, with presales kicking off in China at the end of the month. However, the vehicles being developed in the new R&D center can also be exported from China to help support Nissan’s global commercial vehicle operations. And beyond commercial vehicles, it’s launching a number of new or upgraded sedans, including ICE, PHEV and pure electric versions, with its joint venture partner Dongfeng. And with these moves, Nissan will be looking to boost its sales in China, which are down 8% so far this year.

TOYOTA’S ALL-NEW FJ
Toyota is going to expand the Land Cruiser lineup in the middle of next year with an all-new FJ version. Depending on the market, Toyota currently offers the Land Cruiser 70-, 250- and 300-Series. The 70 is basically the same Land Cruiser that’s been around since 1984. The 250-Series, which is the version that’s sold in the U.S., and 300-Series are newer and are based on Toyota’s large truck and SUV platform. However, this new FJ version rides on the automaker’s IMV platform, which is also body-on-frame, but is quite a bit smaller and is meant for emerging markets. For example, the wheelbase of the Land Cruiser FJ is about 10.5 inches shorter than the 250-Series. It will be made in Thailand and sold in Japan, Asia, Africa, the Middle East and Latin America. Toyota confirmed it will not be offered in Europe or the U.S., even calling it too small for the U.S. market. Although, there must be other reasons as well, because the Land Cruiser FJ is longer and taller than a 2-door Ford Bronco. Power will come from a 2.7L gasoline engine that makes about 160 horsepower and is mated to a 6-speed transmission, which can send power to all four wheels through a part-time 4-wheel drive system. The new Land Cruiser FJ will be offered in two body styles when it launches and the more off-road focused version can also be fitted in a number of off-road accessories, like an engine snorkel and roof rack.

BRIDGESTONE TO RECYCLE TIRES
Bridgestone, which is one of our sponsors, broke ground on a pilot plant in Japan that will recycle end-of-life tires. It will use a process called pyrolysis, which involves heating the tires in an oxygen-free environment to break them down to their original materials. Bridgestone will then collect oil and carbon black to use as raw materials to make new tires. Operations are scheduled to kick-off in 2027 and it will have the capacity to process 7,500 tons of tires a year.

And that brings us to the end of today’s show. Thanks for making Autoline a part of your day.