Author: Lekha Gupta

CarMax, Inc. (NYSE:KMX) shares are trading higher after the company reported fourth-quarter earnings results.

• Quarterly sales of $6 billion beat the street view of $5.96 billion.
• Retail used unit sales rose by 6.2% Y/Y
• Comparable store used unit sales increased by 5.1% Y/Y
• Wholesale units increased 3.1% Y/Y.
• The company reported earnings per share of 58 cents, missing the analyst consensus estimate of 68 cents.
• CarMax Auto Finance income was $159.3 million, an increase of 8.2 % year over year (Y/Y)
• The provision for loan losses stood at $68.3 million vs. $71.6 million a year ago quarter.
• Gross profit per retail used unit was $2,322 (up $71 per unit), and gross profit per wholesale unit was $1,045 (down $75 per unit).
• The Extended Protection Plan margin increased by $10 per retail unit to $580.
• In the fourth quarter, the company repurchased 1.2 million shares of common stock for $98.5 million.

Buyback: As of Feb. 28, the company had $1.94 billion remaining available for repurchase under the outstanding authorization.

The company exited the quarter with cash and equivalents worth $247 million. Restricted cash from collections on auto loans receivable totaled $559.1 million.

Inventories at quarter-end stood at $3.935 billion.

Outlook: For fiscal year 2026, the company plans to open new store growth of six locations, as well as four stand-alone reconditioning/auction centers.

The company projects capital expenditures of around $575 million in FY26.

The year-over-year increase is mainly due to the timing of land purchases, which were deferred from fiscal year 2025 to fiscal year 2026.

Investors can gain exposure to the stock via Valued Advisers Trust Kovitz Core Equity ETF (NYSE:EQTY) and Invesco S&P 500 Equal Weight Consumer Discretionary ETF (NYSE:RSPD).

Price Action: KMX shares are trading higher by 6.44% to $86.66 premarket at last check Thursday.

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Ford Motor Company (NYSE:F) shares are trading higher on Wednesday. Ford, Bayerische Motoren Werke AG (OTC:BMWYY) and, Honda Motor Company, Ltd. (NYSE:HMC) launched operations for the joint venture, ChargeScape, that was announced last year.

ChargeScape, the vehicle-grid integration joint venture, is a software platform that connects electric vehicles (EVs) to the power grid, helping to stabilize the grid and reduce charging costs for drivers.

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The companies disclosed the appointment of Joseph Vellone as ChargeScape’s first CEO and Kalidindi Raju as its Chief Technology Officer (CTO).

Vellone said, “The U.S. has set ambitious targets for renewable energy deployment and EV adoption, and ChargeScape is here to bridge that gap between supply and demand of electricity.” 

“We want to transform EVs from a liability into an asset for the power grid and help deliver a clean transportation future for our country.”

Raju said, “Although the vehicle-grid integration market is expected to be highly competitive, our partnerships with the world’s largest automakers gives us a significant edge. With direct access to the vehicles, we enable utilities to optimize EV charging securely and reliably.”

ChargeScape’s technology wirelessly connects to electric vehicles and collaborates with utilities to manage energy flow based on real-time grid conditions.

EV drivers can be financially rewarded for their flexibility, while ensuring their vehicles are charged by the specified time.

This month, Ford sold 8,944 electric vehicles in August in the U.S., marking a jump of 29% from the corresponding month last year.

This week, the company said that it is looking to start production of a high-performance race car variant of the Mustang for street use as early as this year.

Investors can gain exposure to the stock via First Trust Nasdaq Transportation ETF (NASDAQ:FTXR) and Invesco Exchange-Traded Fund Trust II Invesco S&P Ultra Dividend Revenue ETF (NYSE:RDIV).

Price Action: F shares are trading higher by 1.01% at $11.01 at the last check Wednesday.

Image via Shutterstock

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The nation’s largest oil companies, Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM), reportedly plan to file a federal lawsuit on Thursday to oppose the Biden administration’s efforts to cut emissions from cars and light trucks and promote electric vehicle manufacturing.

The lawsuit will be filed in the D.C. Circuit Court of Appeals, reported Reuters.  

In March, the U.S. Environmental Protection Agency issued new tailpipe emission rules requiring the nation’s automakers to increase production and sales of electric vehicles to comply with the standards.

The agency aims for up to 56% of all car sales to be electric between 2030 and 2032.

The American Petroleum Institute (API) argues that the EPA has overstepped its congressional authority with a regulation that aims to phase out most new gas cars and traditional hybrids from the U.S. market in less than a decade.

API Senior Vice President and General Counsel Ryan Meyers stated, “Today, we are taking action to protect American consumers, U.S. manufacturing workers, and our nation’s hard-won energy security from this intrusive government mandate,”

Minnesota farmer and National Corn Growers Association President Harold Wolle said, “By approving tailpipe standards that focus exclusively on electric vehicles, EPA has ignored the proven benefits corn ethanol plays in reducing greenhouse gas emissions and combating climate change,”

In April, Republican attorneys general from 25 states sued the EPA to block these rules, which are among President Joe Biden‘s significant environmental initiatives aimed at addressing climate change.

This stance has also posed challenges in his relationship with the United Auto Workers, who have hesitated to embrace the transition to electric vehicles fully.

In the final rule, Biden reduced the target for electric vehicle adoption in response to backlash from autoworkers. However, this adjustment did little to appease the oil industry, which relies on gas-powered cars for viability.

Both Biden and his presumed Republican rival in the 2024 presidential election, former President Donald Trump, recognize that winning industrial states like Michigan, Wisconsin, and Pennsylvania hinges on addressing concerns that the transition to electric vehicles could jeopardize jobs.

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Tesla, Inc. (NASDAQ:TSLA) reportedly started hiring back some of the around 500 members of its Supercharging team who were laid off last month.

Max de Zegher, the director of charging for North America, is among the personnel who have been re-hired by Elon Musk, said Bloomberg. 

Apart from De Zegher, Rebecca Tinucci, the senior director, was fired late last month along with everyone else on the Supercharging team.

Notably, CEO Elon Musk fired 500 employees responsible for expanding the company’s Supercharger network as part of Tesla’s previously announced 10% global workforce reduction.

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Last week, Elon Musk announced plans to invest over $500 million in expanding the company’s Supercharger network this year.

Tesla has been in the news recently for a series of layoffs across various divisions, including the advertising unit, and the latest round of layoffs was completed this month.

In the past year, Tesla convinced competitors to embrace its plugs as an industry standard and signed a deal with several major manufacturers to open its network to their customers.

Tesla stock has gained more than 12% in the last 12 months. Investors can gain exposure to the stock via the Consumer Discretionary Select Sector SPDR Fund (XLY) and Fidelity MSCI Consumer Discretionary Index ETF (FDIS).

Price Action: TSLA shares are trading higher by 1.54% at $171.07 at the last check Monday.

Photo via Shutterstock