WSJ's Take On the Week Automakers Are Hitting the Brakes on EVs. Will That Help Their Stocks?
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Sep 28, 2025 John Murphy, a managing director at Haig Partners with deep expertise in the auto sector, shares insights on the waning EV tax credit's impact. He argues that without the subsidy, demand for electric vehicles will plummet, forcing automakers to pivot back to profitable truck sales. Murphy also discusses the fragmentation of powertrains affecting profitability and highlights the opportunity in aftermarket services. The conversation raises intriguing questions about the possible resurgence of internal combustion engines amidst evolving market dynamics.
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Perpetual Futures Bring Turbocharged Crypto Bets
- Gunjan explains perpetual futures ('perps') as turbocharged, highly leveraged crypto bets entering U.S. brokerages.
- She warns these instruments are speculative and could spread as brokerages expand access.
EV Credit Expiry Will Lower EV Penetration
- Ending the $7,500 EV tax credit will likely push EV penetration well below recent levels and reduce overall EV demand.
- Automakers face a long road to make EVs affordable and convenient enough for broad US adoption.
Canceled EV Programs Create Product Gaps
- Automakers wasted capital on EV programs that are now being canceled, creating a hole in new model launches.
- Fewer new models this year could hurt showroom traffic, demand, and pricing dynamics.