The latest Market Talks covering the Auto and Transport sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

1438 ET - Fox Factory says its retail partners are pulling back on orders as consumers buy less baseball and softball gear. Sales in the company's specialty-sports segment fell 11% in the latest quarter as original equipment manufacturers, distributors and retail partners cut down on their inventory levels due to softer consumer demand, Chief Executive Mike Dennison says during a call with analysts. Results for the segment's Marucci brand -- which sells metal and wood bats, gloves, apparel, footwear and accessories for baseball and softball -- were particularly below expectations, he says. "The broader macro concerns surrounding consumers remain a challenge," Dennison says during a call with analysts. (kelly.cloonan@wsj.com)

0644 ET - International Consolidated Airlines Group, owner of British Airways and Iberia among other European airlines, won't be impacted by the reduction in air-travel capacity at U.S. airports, a spokesman for the London-listed company says. U.S. airlines have canceled hundreds of flights across 40 airports around the country, after the Federal Aviation Administration ordered traffic to be cut by 10% while air traffic controllers work without pay during the government shutdown. Meanwhile, Deutsche Lufthansa is monitoring the situation closely and remains in close contact with authorities, a spokesman for the group says. IAG shares are down 8.7% at 3.78 pounds after posting third-quarter results on Friday. Deutsche Lufthansa shares are down 2.2% at 7.30 euros. (cristina.gallardo@wsj.com)

0520 ET - A record pay package of as much as $1 trillion in additional stock for Tesla Chief Executive Elon Musk may never see the light of day, Kathleen Brooks, research director at XTB, writes in a note. Tesla shareholders backed the pay package for Musk provided he hits a number of milestones, including selling one million robots and expanding the company's market capitalization to $8.5 trillion over the next 10 years. Tesla's market cap currently stands at about $1.5 trillion. "This is a high bar," Brooks says. Tesla shares are up 0.6% premarket at $448.37. (mauro.orru@wsj.com)

0516 ET - Pony AI is likely to achieve a 20% share of China's domestic robotaxi fleet market, Citi analysts write in a note. China's robotaxi fleet size is expected to grow to 538,000 units in 2030 from 3,800 units in 2025, they add. Pony AI and Xihu Group have jointly secured Shenzhen's first citywide permits for fully driverless commercial robotaxi operations, which the analysts said should mark the company's accelerating path toward large-scale commercial deployment. Citi initiated buy and high-risk ratings for Pony AI's Hong Kong-listed shares with a target price of HK$190.0. Meanwhile, the brokerage cut its target price for the Nasdaq-listed shares to US$24.5 from US$29.0.(jiahui.huang@wsj.com; @ivy_jiahuihuang)

0515 ET - Daimler Truck will need to post a 7% sequential increase to fourth-quarter EBIT in order to reach consensus estimates, UBS analysts say in a research note. The German truck and bus maker posted third-quarter adjusted EBIT of 716 million euros, while consensus for the full year sits at 3.77 billion euros, according to Visible Alpha. "We see understanding the U.S. tariff implications as important in understanding how big of a challenge this step up is," the analysts say. Shares trade 0.3% lower at 34.57 euros. (nina.kienle@wsj.com)

0505 ET - British Airways owner International Consolidated Airlines Group delivered a solid third-quarter set of results despite some headwinds, Deutsche Bank analysts say in a research note. The lack of a beat of consensus and the group's decision to stick to its 2025 guidance is pushing down the shares, they say. It is reasonable to infer that the company-compiled consensus is deliverable, they add. Shares are down 7% at 3.85 pounds. (cristina.gallardo@wsj.com)

0501 ET - A pay package of as much as $1 trillion in additional stock for Tesla Chief Executive Elon Musk is unlikely to materialize, Swissquote Bank's Ipek Ozkardeskaya writes in a note. The package that Tesla shareholders approved hinges on Musk hitting a number of milestones, such as expanding the company's market capitalization to $8.5 trillion over the next 10 years. Tesla's market cap currently stands at about $1.5 trillion. Achieving a market value of $8.5 trillion is unlikely for a company trading at a price-to-earnings ratio above 300, Ozkardeskaya writes. "Tesla would need either divine intervention - or the U.S. dollar to turn into confetti - to make that valuation and that pay package come true," Ozkardeskaya says. Tesla shares are up 1.1% premarket at $450.78. (mauro.orru@wsj.com)

0455 ET - Cathay Pacific's planned share buyback from Qatar Airways reflects management's confident outlook and supports its strategy to boost shareholder returns, Morningstar director Lorraine Tan says in a note. She notes that Cathay is well-positioned to fund the transaction. Tan adds that Cathay would have room to raise its dividend payout if not for the buyback, which management views as having a longer-term positive impact. The buyback price values Cathay at a premium to Morningstar's intrinsic valuation. Morningstar lowers its fair value estimate to HK$9.60 from HK$9.70, noting that it sees Cathay as slightly overvalued. Shares of Cathay Pacific last closed at HK$11.77. (jason.chau@wsj.com)

0451 ET - British Airways owner International Consolidated Airlines Group stuck to its 2025 guidance in what was likely seen as a disappointment by the market, Goodbody's Dudley Shanley says. Investors were hoping for an upgrade to forecasts, he adds. The London-listed company reiterated that travel demand remains strong and that fourth-quarter revenue is positively booked. On costs, IAG's fuel bill was 9% lower on year, while the decreases in engineering and distribution costs were also impressive, offsetting higher labor costs, Shanley says. Shares are down 6.45% at 3.87 pounds. (cristina.gallardo@wsj.com)

0424 ET - Tesla's market value is set to benefit from shareholders' decision to back a pay package of as much as $1 trillion in additional stock for Chief Executive Elon Musk, Wedbush Securities analysts write in a research note. "With this pay package now voted positively keeping Tesla's biggest asset, Musk, as its leader for the foreseeable future, we continue to believe that the AI valuation is getting unlocked," they say. Tesla could reach a $2 trillion market cap in early 2026 and $3 trillion by the end of 2026, the analysts say. The company currently has a market value of around $1.5 trillion. Tesla shares are up 2.3% premarket at $456.10. (mauro.orru@wsj.com)

0423 ET - Toyota's margins are likely to stay pressured, but its competitive position should remain intact, CreditSights analysts say. While margin compression is significant and management has offered few details on mitigating tariff risks to bolster profitability, volume growth is expected across all major markets this year. Unlike its peers, Toyota's EV investments have been modest, which should help it avoid write-offs in the U.S. near term. "While we expect the company's profit margin to fall below the rating downgrade triggers in FY26, we do not expect negative rating actions in the near term as further tariff relief is likely with the renegotiation of the U.S.-Mexico-Canada Agreement." Toyota bonds are likely to underperform the broader market but CreditSights still views the complex as a relatively safe haven for long-term investors. (jason.chau@wsj.com)

0419 ET - British Airways owner International Consolidated Airlines Group has scope for at least 3 billion euros of further capital returns to shareholders at more than 1 billion euros a year, Peel Hunt's Alexander Paterson and Ivor Jones say. IAG's guidance for the year is unchanged, and the analysts don't expect major changes to their forecasts, which are about 1.5% ahead of consensus. The main shortfall in IAG's third-quarter update was passenger revenue, which was about 2.1 percentage lower partly due to foreign currency fluctuations, they say. Shares are down 9% at 3.77 pounds. (cristina.gallardo@wsj.com)

(END) Dow Jones Newswires

November 07, 2025 16:50 ET (21:50 GMT)

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