Rio Tinto Shares Hit Record High After Ending Glencore Merger Talks 
OpenAI Expands Enterprise AI Strategy With Major Hiring Push Ahead of New Business Offering 
SpaceX Pushes for Early Stock Index Inclusion Ahead of Potential Record-Breaking IPO 
Nvidia CEO Jensen Huang Says AI Investment Boom Is Just Beginning as NVDA Shares Surge 
Instagram Outage Disrupts Thousands of U.S. Users 
Alphabet’s Massive AI Spending Surge Signals Confidence in Google’s Growth Engine 
AMD Shares Slide Despite Earnings Beat as Cautious Revenue Outlook Weighs on Stock 
Global PC Makers Eye Chinese Memory Chip Suppliers Amid Ongoing Supply Crunch 
Nintendo Shares Slide After Earnings Miss Raises Switch 2 Margin Concerns 
Toyota’s Surprise CEO Change Signals Strategic Shift Amid Global Auto Turmoil 
Tencent Shares Slide After WeChat Restricts YuanBao AI Promotional Links 
TrumpRx Website Launches to Offer Discounted Prescription Drugs for Cash-Paying Americans 
Sony Q3 Profit Jumps on Gaming and Image Sensors, Full-Year Outlook Raised 
Nvidia, ByteDance, and the U.S.-China AI Chip Standoff Over H200 Exports 
Nasdaq Proposes Fast-Track Rule to Accelerate Index Inclusion for Major New Listings 
Ford and Geely Explore Strategic Manufacturing Partnership in Europe 
SpaceX Prioritizes Moon Mission Before Mars as Starship Development Accelerates 
Goldman Sachs continues to back Europe’s premium automakers, naming Mercedes-Benz and BMW as its preferred choices as the industry faces stricter CO₂ regulations, shrinking electric-vehicle market share in China, and rising tariff pressures. According to the brokerage, both luxury manufacturers are well positioned thanks to strong balance sheets, favorable product cycles, and the flexibility to shift production across regions as global conditions evolve.
Goldman Sachs noted that emissions compliance poses a smaller challenge for premium brands compared to mass-market automakers. BMW is on track to meet its 2025–2027 EU emissions goals under the bloc’s three-year averaging mechanism, supported by growing battery-electric vehicle adoption within its lineup. The analysts also emphasized that concerns over declining Chinese market share for German automakers are often overstated, as most of the loss is concentrated in the EV segment, where local Chinese manufacturers have advanced rapidly. Despite this, Mercedes, BMW, and Volkswagen have actually strengthened their internal-combustion engine market positions in China over the last five years.
Since 2019, premium brands have lost only about 0.5 percentage points of total market share, a significantly smaller drop compared to the 5-point decline for Volkswagen and the steep 8-point decline for Japanese manufacturers. Looking ahead, Goldman Sachs believes that new platform launches from both Mercedes and BMW will enhance competitiveness. Mercedes’ MMA and MB.EA platforms are expected to lower battery costs by roughly 30% per kWh, while BMW’s upcoming Neue Klasse aims for a 30% increase in driving range, 30% faster charging, and a 20% cut in production costs.
The report also highlighted that Mercedes, BMW, and Renault continue to hold strong net cash positions despite weakened valuations in the broader auto sector. Goldman Sachs added that the implied enterprise values of their core automotive units are now negative, further underscoring potential value opportunities. Overall, the brokerage views Mercedes, BMW, and Renault as better equipped to manage the sector’s major risks, supported by robust product pipelines and consistent cash generation.
