🪂Autowist Report 99

• 💹FINANCIALS

  • STMicroelectronics Investor Day Highlights

• ⚡ROUNDUP

• 🐦AUTO BUZZ

• 📈MARKET SNAPSHOT

💹FINANCIALS

A focused look at recent automotive company financials

STMicroelectronics Investor Day Highlights

Key Points from STMicroelectronics Q3 2024 Earnings Call:

1. Financial Overview:

   • Q3 2024 revenue: $3.25 billion (-26.6% YoY), surpassing guidance midpoint.

   • Q3 EPS: $0.37 (beats by $0.05); net income: $351 million (-68% YoY).

   • Gross margin: 37.8% (down from 47.6% YoY), driven by product mix and unused capacity charges.

   • Q4 2024 guidance: Revenue of $3.32 billion (midpoint), gross margin of ~38%.

2. Segment Performance:

   • Automotive revenue decreased ~18% YoY.

   • Industrial segment revenue dropped >50% YoY.

   • Personal Electronics declined ~9%, while Communication Equipment & Computer Peripherals declined ~5%.

   • Microcontroller revenue declined 43.4% YoY, heavily impacted by inventory corrections and weakening end demand.

3. Market Dynamics:

   • Weakness in the Industrial and Automotive markets continues.

   • Shift observed from fully electric vehicles (EVs) to hybrids and more economical vehicles, impacting demand for silicon carbide products.

   • Ongoing inventory corrections across multiple segments, particularly in Industrial and Automotive.

4. Outlook and Guidance:

   • FY 2024 revenue projected at $13.27 billion (-23.2% YoY).

   • Anticipates Q1 2025 revenue decline "well above normal seasonality."

   • Continued challenges in Automotive and Industrial segments expected into H1 2025.

5. R&D and Partnerships:

   • Maintained R&D investments despite cost efficiencies.

   • Collaboration with Qualcomm Technologies for industrial and IoT solutions, starting with a Wi-Fi/Bluetooth/Thread SoC integrated into STM32 microcontrollers.

6. Cost and Pricing Pressures:

   • Pricing pressure noted in Automotive; mid-single-digit declines anticipated in 2025.

   • Regional variances observed, with higher pressure in China's automotive market.

⚡ROUNDUP

Key headlines shaping the auto industry this week

• Volkswagen boss warns that plant closures are inevitable as unions begin strike action (Link)

• Tesla Won’t Be Part Of California’s EV Tax Credit (Link)

• EV charging platform Ampeco raise $26M Series B, as demand for charging soars (Link)

• Hyundai recalls 145K vehicles over loss of power (Link)

• Rivian Software Boss Says Google Cast In, Buttons Out, Open To Range And Power Boost Subscriptions (Link)

• Rivian Scores $6.57 Billion Jackpot From Program Republicans Want To Kill (Link)

• Rivian CEO Says The Tesla Model Y Is Still The Best EV Under $50,000 (Link)

• BMW cars now drive themselves off the assembly line (Link)

• BYD launches 3 different battery packs for construction machinery, up to 4C charging (Link)

• Mercedes-Benz now has an Apple Watch version of its mobile app (Link)

• Test Scenarios for Autonomous Vehicles (Link)

• California Surpasses 2 Million EVs Sold Milestone In Q3 (Link)

• XPeng Weekly Registrations Surpass 7,000 Units For the First Time (Link)

• Multi-Chemistry Batteries, Solar Paint: Mercedes' Vision For The Future (Link)

• Finally: This Kit Adds Apple CarPlay To General Motors' EVs (Link)

• EV battery manufacturer Northvolt bankrupt, CEO resigns (Link)

• EV Market Ready to Break Records Again (Link)

• BYD set to launch next-gen Blade EV battery in 2025 (Link)

• EV battery prices will continue to fall, despite upward movement in battery material prices (Link)

• Porsche prepares for sales squeeze as China and EVs disappoint (Link)

• Honda's in-house solid-state batteries will be 50 percent smaller (Link)

• GM has a deal to bring a new Cadillac F1 team to the grid (Link)

• Volkswagen slashes the value of its stake in Northvolt, the beleaguered battery manufacturer (Link)

• Tesla And Rivian Finally Approaching A Settlement Over Tech Theft Lawsuit (Link)

🐦AUTO BUZZ

Top posts, tweets, and videos from the automotive industry

📈MARKET SNAPSHOT

This week’s key movers in the automotive stock market