Auto Roundup: GM’s Unfulfilled Robotaxi Dreams, AZO Q1 Earnings & More

The China Passenger Car Association has released vehicle sales data for November. China’s retail sales of passenger vehicles were up 16.5% year over year to more than 2.4 million units. Retail sales of passenger vehicles in the first 11 months of 2024 increased 4.4% year over year. Sales of new energy vehicles in the country surged 49.6% last month to 1.43 million units.

On the news front, U.S. legacy automaker General Motors GM pulled the plug on its robotaxi ambitions. Auto parts retailer AutoZone AZO delivered first-quarter fiscal 2025 results, missing both earnings and sales estimates. Italian American automaker Stellantis STLA is teaming up with China-based battery maker CATL to invest €4.1B in a large-scale LFP battery plant in Spain, targeting 50 GWh capacity by 2026, advancing affordable EVs and global climate goals. Auto equipment supplier Autoliv ALV and Chinese automaker JMC joined forces to drive global innovation in automotive safety and redefine driving comfort. Electric vehicle charging company EVgo EVGO secured a $1.25 billion loan to expand its fast-charging network by 2029, driving EV adoption with 7,500 new stalls and next-gen innovations.

General Motors announced its exit from the robotaxi business, marking the end of its Cruise division’s ambitious plans to compete in the self-driving ride-hailing market. After investing over $10 billion into Cruise since its acquisition in 2016, GM cited several reasons for pulling the plug, including intense competition, high capital demands and extended timelines to profitability. The automaker will now shift its focus toward integrating autonomous driving technology into personal vehicles, combining Cruise’s operations with GM’s technical teams. GM expects to save over $1 billion annually through its restructuring efforts, which are expected to be completed in the first half of next year.

The decision comes after Cruise faced significant setbacks, including regulatory scrutiny and safety concerns. In October 2023, Cruise suspended its driverless operations following a pedestrian crash in San Francisco, resulting in a $1.5 million fine from the National Highway Traffic Safety Administration. Despite attempting to restart supervised autonomous driving in Phoenix and expanding to cities like Dallas and Houston, GM’s confidence in Cruise’s future waned. In July, the company announced its decision to indefinitely delay the production of Origin autonomous vehicles.

GM stock has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AutoZone reported earnings of $32.52 per share for the first quarter of fiscal 2025 (ended Nov. 23, 2024), which missed the Zacks Consensus Estimate of $33.54. The company reported earnings of $32.55 per share in the corresponding quarter of fiscal 2024. Net sales grew 2.1% year over year to $4.28 billion. The top line, however, missed the Zacks Consensus Estimate of $4.29 billion. In the reported quarter, domestic commercial sales totaled $1.13 billion, up from $1.09 billion recorded in the year-ago period. Domestic same-store sales (sales at stores open at least for a year) were up 0.3%.

During the quarter, AutoZone opened 23 new stores in the United States. It opened six new stores in Mexico and five in Brazil. It exited the quarter with 6,455 stores in the United States, 800 in Mexico and 132 in Brazil. The total store count was 7,387 as of Nov. 23, 2024. AutoZone had cash and cash equivalents of $304 million, up from $298.2 million as of Aug. 31, 2024. Its total debt amounted to $9.01 billion as of Nov. 23, 2024, compared with $9.02 billion as of Aug. 31, 2024.

Stellantis and CATL have agreed to invest up to €4.1 billion to establish a joint venture for a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. This carbon-neutral facility will be developed in phases and is planned to begin production by late 2026. The plant’s capacity could reach up to 50 GWh, contingent on the evolution of Europe’s electric market and ongoing support from Spanish and European Union authorities. The transaction is expected to close by 2025, pending regulatory approvals.

The 50-50 partnership aims to strengthen Stellantis’ LFP offerings in Europe, enabling the production of more affordable, durable and high-quality battery-electric vehicles across the B and C segments, including passenger cars, crossovers and SUVs.CATL will bring its state-of-the-art battery manufacturing expertise to Europe, building on its existing facilities in Germany and Hungary. The new Spanish plant will further support Europe’s e-mobility and climate goals while advancing the global energy transition.

Autoliv announced a strategic collaboration with Jiangling Motors. The partnership seeks to accelerate innovation and bolster both companies’ global presence. Having supplied seatbelts to JMC since 1997, Autoliv is deepening its ties with the automaker, known for its strong presence in China’s commercial vehicle market and its growing influence in passenger vehicles. The alliance aims to leverage efficient supply chains and modularization, unlocking new opportunities in global markets.

The collaboration will focus on research and development of advanced automotive safety technologies, addressing evolving market demands. Pinghui Li, general manager of New Business at JMC, emphasized the shared vision of safety and innovation, expressing excitement about exploring new frontiers in the automotive industry. This partnership reinforces the commitment of both companies to delivering safer, more comfortable driving experiences globally.

EVgo has finalized a $1.25 billion guaranteed loan from the U.S. Department of Energy (DOE) under the Title 17 Clean Energy Financing Program. This funding will enable the construction of 7,500 new fast-charging stalls across the United States, increasing EVgo’s network to over 10,000 stalls by 2029. The initiative aims to address the growing demand for reliable public EV charging, supporting the rollout of over 30 new affordable EV models expected by 2025. The project will also create over 1,000 U.S. jobs in construction, engineering and operations.

The loan features a 17-year term with capitalized interest during a five-year deployment period starting in 2025. EVgo has pledged 1,594 existing charging stalls as collateral, while the first drawdown of $75 million is expected in January 2025. EVgo’s Innovation Lab will support the deployment of next-generation charging architecture, enhancing customer experience and efficiency. This project marks a significant step toward advancing U.S. transportation electrification and boosting consumer confidence in EV infrastructure.

The following table shows the price movement of some of the major auto players over a week and six months.

Image Source: Zacks Investment Research

Industry watchers will keep a tab on November new car registration data to be released by the European Automobile Manufacturers Association. Also, investors await the quarterly results of the largest used car retailer CarMax, which is scheduled to report on Dec. 19.

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