The U.S. automotive industry shifts focus as Trump administration eases fuel economy standards and phases out EV tax credit, impacting EV adoption rates and startup woes. Legacy automakers incur charges on EV investments while reporting stellar profits from ICE operations, with GM expecting strong financial performance through 2025.

Ford announces $19.5 billion hit as it restructures EV strategy, focusing on hybrids and EREVs. Despite EV losses, Detroit giants report robust profits, leading to market gains of 38% for Ford and 53% for GM. GM outperforms Ford, mitigating tariff impacts and receiving positive market response.

GM’s capital discipline and share repurchases boost its performance, leading to upgrades by analysts while Tesla and Rivian face downgrades amid EV industry challenges. GM trades at a forward P/E multiple of 7.8x, with expected earnings growth of 12.7% next year, maintaining a strong position in the market despite EV slowdowns.

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