Claude

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Top Highlights

• ~€3 billion in revenues and <€750 million in EBIT in Q3

• ~$100 million negative EBIT impact in Q3

• ~$200 million EBIT impact in Q3, ~$600 million in Q4 so far

• Slowing EV demand growth

• adjust to slowing near-term growth

• Confirmed financial guidance of double-digit adjusted operating income margin

• net pricing gains in emerging markets, positive pricing in Europe and North America (up 2.5% in U.S.)

• volume being main driver of growth

• Q3 adjusted EBIT margin of 5%

• lower volumes

• Q3 EBIT-adjusted margin of 8.1%

• low to mid single digit EV margins in 2025

• too early to commit to buybacks for next year, but will consider it

• I believe GM presents the most compelling investment case right now

• The stock valuations remain depressed at <7x P/E despite the promising developments

• This provides a buffer as they ramp up EV

• 260,000 BEVs so far in 2023

• At around 5x P/E