For the love of all things good, America needs smaller electric trucks
If you saw a good friend of yours, someone that you loved, backsliding again into their destructive habits, you’d say something, right? I would. And I have to do it now. America, you’re my friend. And we need to talk about all of these massive electric trucks.
It’s no secret that America has a love affair with massive vehicles, namely trucks and SUVs. But what is a bit less well known is exactly why. As you can probably guess though, it has to do with money, namely profits for manufacturers.
There was a time when the “big family car” in the US was a station wagon. It fit a seven-person family and the dog, plus everyone’s luggage, and became the iconic family road trip vehicle for decades. It was a simpler time, when cars weighed less, held more, and had better visibility.
So why did that change? Mostly it had to do with the US automotive industry successfully lobbying to get pickup trucks and SUVs classified as “light trucks,” a category previously reserved for commercial vehicles, and one that made it possible to avoid regulations. It was possible because this automotive class, as mostly commercial vehicles, was exempt from the more stringent safety and emissions standards applied to regular passenger cars.
So the US auto industry discovered they could sell vehicles that avoided stricter safety and emissions regulations, thus saving them money in manufacturing. And perhaps most egregious of all, automakers even discovered they could charge a premium doing it by pitching such large automobiles as lifestyle vehicles.
I had hoped that the advent of electric vehicles might finally provide a return to form once avoiding emissions regulations would no longer be a unique advantage of producing in the massive “light truck” category. But I underestimated the inertia of the American automotive industry. The problem is that automakers had already spent two decades telling Americans that if they don’t buy a bigger vehicle than their neighbor, then what were they even doing?
And so it should come as no surprise that in a country where the single best-selling vehicle of any type is a Ford F-150 pickup truck, the last couple years have seen the rollout of the 6,500 lb. Ford F-150 Lightning, the 7,000 lb. Rivian R1S & R1T, the 8,000 lb. Chevy Silverado EV and the gluttonous 9,000 lb. GMC HUMMER EV. All of these are 100% electric trucks and SUVs, and all of them are utterly massive. Listen America, we need to talk. Consider this an intervention.
It’s not your fault, America. It’s the automakers’ fault. As Americans, we once got by just fine with smaller trucks.
Remember the Ford Rangers and Chevy S10s of the early 1990s? Here’s the crazy thing. A 1993 Ford Ranger compact pickup truck weighed just 2,900 lb. and yet had a longer bed than Ford, Chevy, and Rivian’s massive electric trucks of today. Some comparisons are nearly comical, like Rivian’s 4’6″ bed compared to the 6′ standard and 7′ long bed on the cute little 2,900 lb. Ford Ranger that came 30 years earlier.
And if you think that’s bad, consider that those two trucks have the same payload capacity. That’s right, they are rated to haul the same amount of weight, around 1,250 to 1,500 lb. depending on the configuration, even though that payload is a full half the weight of the ’90s truck and less than a quarter of the weight of today’s massive trucks.
The even smaller 2,600 lb. Chevy S10 compact pickup truck had a 1,216 lb. payload capacity in 1993, which is nearly identical to the 1,300 lb. payload capacity of the 8,000 lb. Chevy Silverado EV pickup truck recently grabbing headlines. One truck weighs over three times as much as the other and yet they can both haul the same amount of weight.
Okay, so if the trucks have the same cargo capabilities, then where is all of that extra weight coming from on today’s massive e-trucks? It’s largely coming from two areas: gigantic powertrains and an excessive amount of fluffy creature comforts.
These lifestyle trucks aren’t just rolling living rooms. They’re also supercars. The Rivian R1T has a 3.1 second 0-60 mph time. The Ford F-150 Lightning does it in 3.8 seconds. Those are competition numbers, folks. There are dudes turning wrenches in their garages right now that could only dream of getting their cars to the mark in 3.1 seconds.
It’s a feat that is possible thanks to that massive torque and low-end power offered by electric motors, but it simply isn’t necessary for most people. There’s no case where the driver of an 8,000 lb. truck needs to get it up to 60 mph in 3.1 seconds, and in fact its ability to do so has been correctly highlighted as a danger in and of itself.
But what about towing?
Aha! There you go: towing. This is pretty much the only vestige of reasonableness left for these massively oversized electric trucks, and even this one is pretty thin. The extreme power that gives these 8,000 lb. vehicles faster acceleration than many sports cars also translates into impressive towing. It’s the one area where they best compact pickup trucks from 30 years ago, offering much higher towing capacities.
But here in lies the rub: Most people don’t need that kind of towing power. At least, they don’t need it very often. If you live south of the Mason-Dixon line, take a closer look at the sea of pickup trucks driving around every day. How many of them are towing anything? Almost none of them, that’s how many. In fact, how many of them have literally anything in the bed? Very few of them, that’s how many.
I’d wager that mosts Honda Civics have more junk floating around their trunks than most modern pickup trucks have in their beds. Next time you’re in the parking lot at Lowes or Home Depot, take a peek at how many of the pickup trucks have nice, shiny tail gates without a scratch on them.
But I digress, we were talking about towing. The standard argument is “but what if I need to tow something?” And the correct answer is, “most people rarely do.” Sure, some people live out of an Airstream trailer that is permanently connected to their truck. But most truck owners tow something heavy a few times a year, maximum. More common towing operations are smaller, lighter jobs that could be performed with a much smaller vehicle. In Europe, it is common to see people towing a camper behind a small family car.
Now if you’re a truck owner, I’m not saying that you specifically don’t use your truck. Or that you never tow or never haul. I’m just saying that almost every time you’ve used your truck recently, it’s probably been for a job that could have been done by a much smaller vehicle, or even… gasp! A compact pickup truck weighing a third as much.
And yes, I’m generalizing here. On average, most trucks on the road right now aren’t doing “truck” things. But not all of them. If you run a landscaping business and you have a 16-foot enclosed landscaping trailer behind your truck, then carry on, this isn’t about you. Thank you for your service. If you’re a diving instructor and pull a boat to the marina or two dozen scuba tanks as part of your job, then have at it. If you’re a plumber and have a bed full of pipes, ladders, and other assorted fitting gear, then go for it. There are people that use their trucks for trucking each and every day. That’s all good, go to town. Because yes, there are real uses for big trucks, so I’m not saying those trucks shouldn’t exist. But what I am saying is that most truck owners don’t actually need them and could instead use a much smaller truck, if they still want to be in a truck. These are the recreational truck owners. The lifestyle truck owners. The majority of truck owners, the majority of the time.
Most people that need “truck capabilities” end up needing to move a couch or a refrigerator once in a blue moon. It’s just like how many electric car owners will say they like knowing they have over 300 miles of range, but you’d be hard-pressed to find many that have actually driven over 300 miles in the car recently.
And if that’s you, the occasional “I need to move a couch or my dirt bike” truck owner, then first of all that could be done in a compact truck. And second of all, it could also be done in a rental truck, not one that you drive every day while wasting energy and putting both yourself and others in harm’s way with the increased size, diminished safety (fewer safety regulations for light trucks!), and reduced visibility.
I’m not trying to point fingers, but if I’m doing, then I’ll look inwards as well. I can even see it in my own family. My sister runs a furniture refinishing business and so she bought a Silverado (not the EV one). It’s massive. And yes, once in a while she moves a dresser or a table. But for every trip that she has furniture in the bed, there are probably 20 trips where she’s picking up a gallon of paint or a box of nails or dropping her kids off at school. All of those trips could just the same be performed in a compact truck or a family sedan or even on a bicycle. I love my sister and I hope she never reads this, but even in her case as a blue-collar small business owner, she’d be better off with a small car and just renting the occasional truck. Or even putting a trailer behind a small car. An expensive truck that actually “trucks” infrequently is simply a waste of money, energy, and resources. It’s also a waste of space, especially when you look at parking. Many parking lots simply can’t accommodate today’s larger trucks into existing parking spaces.
America needs to reform its microcar laws
One of the reasons we likely don’t see compact electric trucks (or really any compact trucks in serious numbers) anymore is because there just isn’t much profit in it. Automakers have already “sold” Americans on the idea that they need a bigger vehicle, and so now all of the profits are in producing those bigger vehicles and squeezing more add-on cash flow out of them in the form of accessories, servicing, etc.
But what could finally make a dent in that would be new electric mini-truck laws.
We almost had a true highway-capable electric mini-truck in the form of the recently unveiled TELO mini-truck, but there too the designers ended up screwing the pooch by chasing after the high-end market.
They gave it a top speed of 125 mph, which is ridiculous considering you can’t legally do anywhere close to that in the US. They gave it 500 horsepower, which is ridiculous in a freaking mini-truck. They gave it a 0-60 second time of 4.0 seconds, which again, is ridiculous in a mini-truck. And they gave it an estimated $50,000 price, which since no automaker has yet stuck to their estimated price, means it will be north of $50K if it ever makes it to market.
No one buys a mini-truck as a lifestyle vehicle or to make a statement (unless your statement is that your manhood is so appreciable that driving a mini-truck is doing the opposite of compensating for any, ummm, insufficiencies you may be hiding). People use mini-trucks for getting work done. They use them for hauling crap around town, making deliveries, and generally going about real daily work.
The problem is that the US’s microcar laws, which created a class known as Low Speed Vehicles to remove nearly all of the safety regulatory hurdles of larger cars, also has the unfortunate stipulation of limiting speeds of these vehicles to just 25 mph. That’s too slow for most people to feel comfortable driving a truck in a city or suburb, even if in actuality traffic often moves at far less than 25 mph in many cities and suburbs.
But if the US finally created a similar class of vehicles to quadricycles in Europe, a group of four-wheeled vehicles that have fewer regulations but are limited in speed to around 45-55 mph, then an entire new industry of electric mini-trucks could spring up nearly overnight.
Automakers could enjoy quicker paths to market and lower development costs, and consumers could enjoy lower-cost, smaller, and more convenient electric trucks. Because let’s face it, as much as you’d like a new 450-mile range Chevy Silverado EV truck, you don’t have the $77,000 for it.
But you might have $35K for a modern day Chevy S10 pickup compact pickup truck that just reaches highway speeds or $25K for an electric mini-truck that can hit city/suburb speeds.
As much as I’d like to see a new class of mini-truck and not-as-low-speed-vehicle laws, it’s unlikely to happen anytime soon. But that doesn’t mean it’s any less important of a goal to work toward. Electric mini-trucks are common in Asia and Europe precisely because they have laws that create a framework for their production and use.
That’s what the US needs. It needs electric mini-trucks that can legally reach 45 mph to more comfortably traverse suburbs and larger city streets. It needs automakers to return to the concept of compact pickup trucks, offering us electric versions that top out at 80 mph yet can haul as much as massive flagship electric trucks over twice their weight.
I’m not sure how we achieve that, but it seems like it needs to be an outside force. The automakers have demonstrated that they aren’t interested in doing it themselves. Weight-based vehicle registration fees have been presented in New York and other areas, and perhaps parking should be prioritized for smaller, more space efficient cars. There’s plenty of ways to help guide drivers towards cars that are smaller, safer, and more efficient.
I’m not saying the existing group of massive trucks need to go, though part of me wishes they would be relegated to commercial use as they were once intended. But we need to provide better offerings that more accurately match what drivers actually need, not what automakers tell them they need. Because for every pickup truck or SUV out there towing a boat right now, there are triple digits of pickup trucks and SUVs hauling a gallon of milk and little Timmy’s soccer bag. A more American road image, unfortunately I can not imagine.
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Lime, a global leader in shared electric micromobility, is significantly expanding its fleet this spring with the launch of two new vehicles – the LimeBike and LimeGlider.
After a successful series of pilot programs in 2024, Lime announced plans to roll out more than 10,000 of these new electric vehicles across multiple cities in Europe and North America in the coming months.
The introduction of the LimeBike and LimeGlider mark a key step forward for Lime as the company aims to attract a wider range of riders to shared micromobility. Both vehicles feature significant design innovations informed by extensive rider feedback, city partner consultations, and performance data gathered from Lime’s extensive operational experience.
The LimeBike marks the return of the Lime brand’s original name in a refreshed and modern form. Designed specifically to enhance rider accessibility and comfort, the LimeBike features an approachable step-through frame making it easier to mount and dismount.
Additionally, it has a unique ergonomic clamp design allowing riders to easily adjust seat height. This feature was developed directly from rider feedback, aiming to make the bike more inclusive for riders of different heights and abilities.
Smaller 20-inch wheels give the LimeBike improved handling and a compact feel, making it more maneuverable in dense urban settings.
Unlike European markets, the LimeBike is offered in US markets will also include a hand throttle, allowing riders the flexibility to choose between traditional pedal-assisted cycling and throttle-only operation. This flexibility caters to varying rider preferences and physical abilities, broadening the appeal of the bike in a market where most e-bike riders tend to prefer throttle operation.
The LimeGlider, meanwhile, introduces a completely new vehicle type to Lime’s fleet – a seated, pedal-less electric vehicle designed for effortless riding. Combining the comfort of a seated ride with the simplicity of a scooter, the LimeGlider aims to appeal especially to riders who prefer a less physically demanding ride experience or who may have limitations making traditional scooters challenging.
Designed with rider comfort as a priority, the LimeGlider includes footrests instead of pedals, a large padded moped-style seat positioned lower to the ground to lower the center of gravity, and intuitive ergonomic hand grips to reduce rider fatigue. The green and black colorway sets it apart somewhat from Lime’s usual green and white fleet, further underscoring its new role as a bridge between scooters and bicycles in terms of ride experience.
Both the LimeBike and LimeGlider incorporate several shared improvements aimed at boosting convenience and safety. Wider front baskets offer increased utility for everyday errands and ergonomic phone holders provide secure and accessible navigation for riders. Each vehicle is equipped with 2.5-inch tires optimized for reliable traction in varying conditions.
From the tech side, the LimeBike and LimeGlider represent Lime’s most advanced offerings yet. Lime says that improved location accuracy within the vehicles’ onboard systems ensures quicker identification and responsiveness in recognizing designated parking zones, restricted access areas, and low-speed zones, crucial for compliance with city regulations and enhancing rider safety.
Sustainability has also been central to the design philosophy behind Lime’s latest vehicles. Utilizing modular construction methods, the LimeBike and LimeGlider are among the most repairable vehicles Lime has produced to date. Modular components mean quicker, easier repairs, minimizing downtime and extending vehicle lifespan. Both vehicles share Lime’s proprietary swappable battery technology, common across the company’s Gen4 fleet, streamlining operations and reducing environmental impacts by prolonging battery life and optimizing energy usage.
The pilot tests conducted in 2024 underscored the strong market potential for both vehicles. Lime reported notably positive rider responses, with high rates of repeat usage and longer ride durations, particularly with the LimeGlider. For instance, during the pilot in Seattle and Zurich, riders frequently embarked on journeys exceeding 5 kilometers and averaging over 15 minutes per trip, surpassing the usage patterns of Lime’s existing Gen4 electric bikes.
Building upon these successful pilots, Lime’s spring launch targets several strategically selected cities. The LimeBike is set to roll out in Turin, Italy; Aarhus, Denmark; Nice, France; and Nyon, Switzerland, expanding into areas with established cycling cultures and infrastructure. The LimeGlider debuts in major U.S. cities including Denver, Austin, and San Francisco, markets that Lime identifies as primed for growth in seated, scooter-like micromobility solutions. Both vehicles will also see wider availability in cities like Atlanta, Seattle, and Zurich, where initial pilots indicated strong rider enthusiasm.
Lime’s President Joe Kraus expressed optimism about the new vehicles, highlighting their appeal during early trials: “During our initial pilots last year, it was clear that the LimeBike and LimeGlider earned the love of our riders, with people returning to them frequently for local travel,” Kraus explained. “We’re so excited to take our next step with these vehicles and bring them to more cities this spring.”
The introduction of these vehicles aligns closely with urban policy goals aimed at reducing car dependency and enhancing accessibility for a diverse range of city residents. Lime specifically designed the LimeBike and LimeGlider to meet the needs of traditionally underrepresented micromobility users, such as older riders and women. Enhanced vehicle stability, ease of use, and adjustable features aim to reduce common barriers to micromobility adoption among these groups.
Since its inception in 2017, Lime riders have collectively completed over 750 million rides, covering more than 900 million miles (over 1.5 billion kilometers). This significant uptake of micromobility solutions has translated into meaningful environmental benefits, replacing an estimated 180 million car trips, thereby preventing over 77 million kilograms of CO2 emissions and saving more than 33 million liters of gasoline.
With the launch of the LimeBike and LimeGlider, Lime is poised to significantly build upon these achievements, further shifting urban transportation patterns toward sustainable, inclusive, and efficient micromobility.
Electrek’s Take
I think that Lime’s new LimeBike and LimeGlider are smart additions that feel well-positioned for today’s micromobility market. It’s also great to see Lime include a throttle on the LimeBike for the North American market, where so many riders prefer to ride without pedaling. For casual users and tourists especially, a throttle can make all the difference between choosing to hop on a shared e-bike or not.
Lime clearly listened to rider feedback, and these new models could help pull even more people into using micromobility instead of cars. Let’s just hope they can keep it up.
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Tesla (TSLA) will release its Q1 2025 financial results today, Tuesday, April. 22, after the markets close. As usual, a conference call and Q&A with Tesla’s management are scheduled after the results.
Here, we’ll look at what the street and retail investors expect for the quarterly results.
Tesla Q1 2025 deliveries and energy deployment
CEO Elon Musk and his loyal shareholders often claim that Tesla is now an AI/Robotics company, but the truth is that the company’s automotive business still drives the vast majority of its financial performance.
Tesla’s revenue remains tied mainly to the number of vehicles it delivers.
Earlier this month, Tesla disclosed its Q1 2025 vehicle production and deliveries:
| Production | Deliveries | Subject to operating lease accounting | |
| Model 3/Y | 345,454 | 323,800 | 4% |
| Other Models | 17,161 | 12,881 | 7% |
| Total | 362,615 | 336,681 | 4% |
It was significantly below expectations and approximately 50,000 units short of what Tesla delivered in Q1 2024.
Analysts have been adjusting their revenue and earnings expectations accordingly since the disclosure a few weeks ago.
Now, Tesla’s energy storage business is also starting to make a meaningful contribution to its financial performance. The company disclosed having deployed 10.4 GWh of energy storage products during Q1 2025.
Tesla no longer discloses solar deployment information.
Tesla Q1 2025 revenue
For revenue, analysts generally have a pretty good idea of what to expect, thanks to the delivery numbers and now the energy storage deployment data.
However, many were taken by surprise by how low Tesla’s deliveries were this quarter and the automaker offered a lot of discounts, which will affect the average sale price that analysts are now trying to figure out.
The Wall Street consensus for this quarter is $21.345 billion, and Estimize, the financial estimate crowdsourcing website, predicts a slightly lower revenue of $21.254 billion.
Here are the predictions for Tesla’s revenue over the past two years, with Estimize predictions in blue, Wall Street consensus in gray, and actual results are in green:
This would be about a $1 billion lower than the same period last year – meaning that analysts don’t expect Tesla’s increased energy storage deployment to compensate for the lower vehicle deliveries.
Tesla Q1 2025 earnings
Tesla claims to consistently strive for marginal profitability every quarter, as it invests the majority of its funds in growth, but its growth has disappeared from its automotive business over the last year, and its gross margin is going in the same direction.
Analysts are trying to estimate Tesla’s gross margin with the lower deliveries to figure out its actual earnings per share.
For Q1 2025, the Wall Street consensus is a gain of $0.41 per share and Estimize’s crowdsourced prediction is a little lower at $0.40.
Here are the earnings per share over the last two years, where Estimize predictions are in blue, Wall Street consensus is in gray, and actual results are in green:
If the estimates are accurate, Tesla’s earnings per share would be down from $0.45 during the same period last year.
There are several things that Tesla could do here that could surprise investors with a significant earnings beat. Tesla could have recognized revenue from the launch of FSD in China, even though the launch was brief and 95% of the value of the FSD package is unsupervised self-driving, which Tesla has yet to deliver.
Tesla could have also sold more emission credits. As of the end of last quarter, Tesla was still sitting on a good amount, and while it claims to sell them when the price makes the most sense, it is quite an opaque market and Tesla could at any time decide to sell them just to save itself from a bad quarter.
Other expectations for the TSLA shareholder’s letter, analyst call, and special ‘company update’
As we reported yesterday, this is likely going to be a messy earnings report. Musk has been on a propaganda spree lately after Tesla suffered immense brand damage and declining stock price due to his involvement in politics.
Now, he has called for a “live company update” at the same time as the release of Tesla’s financial results, which appears to be a desperate move at damage control amid a tough quarter for the company.
I expect that he will try to paint a rosy picture of Tesla’s self-driving and robot efforts to come save the company amid declining EV sales.
As I previously reported, I wouldn’t be surprised if he also pushes for Tesla to invest in his xAI startup or proposes a merger between the companies.
Tesla will also take questions from retail shareholders based on the most popular ones on Say. Here are the top 5 questions and my thoughts on them:
- Is Tesla still on track for releasing “more affordable models” this year? Or will you be focusing on simplified versions to enhance affordability, similar to the RWD Cybertruck?
- We have had the answer to that question for about a year now, but Tesla shareholders don’t believe it because Elon claimed that Reuters’ original report that Tesla canceled its more affordable EV was “wrong” when it fact it wasn’t. As we recently reported, Musk killed the “$25,000 Tesla” in favor of the Robotaxi and building new stripped-down versions of Model Y and Model 3.
- When will FSD unsupervised be available for personal use on personally-owned cars?
- Lol – we are just going to get Elon’s “best guess”, which has been wrong every time for the last decade.
- How is Tesla positioning itself to flexibly adapt to global economic risks in the form of tariffs, political biases, etc.?
- Musk is going to say “you go woke, you go broke” and that his pathetic quest to “kill the woke mind virus” will ultimately be good for Tesla because the world will be rid of this destructive virus. As for the global economic risks, I wouldn’t be surprised if Tesla announces more layoffs soon.
- Robotaxi still on track for this year?
- It could very well be. We have already reported in detail about how Tesla’s “robotaxi” launch in Austin, planned for June, is actually a “moving of the goal” and it has very little to do with Tesla’s long-stated promise of delivering unsupervised self-driving in a consumer vehicle, as asked in the second question.
- Did Tesla experience any meaningful changes in order inflow rate in Q1 relating to all of the rumors of “brand damage”?
- If they say no here, don’t believe them. Tesla is down 50,000 units in Q1, and yes, the Model Y changeover has something to do with it, but you can clearly see now, based on new Model Y delivery timelines, that Tesla has no order backlog for the vehicle. It will likely launch incentives to sell the brand-new vehicle that was supposed to save Tesla’s auto business in the coming weeks.
Tune in with Electrek after market close today to get all the latest news from Tesla’s earnings, conference call, and now also an apparent “company update.”
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Investors are entering 2025’s first-quarter earnings season with a huge cloud of uncertainty hanging over them — thanks primarily to U.S. President Donald Trump’s tariffs.
The scale of duties announced in April, along with the volatility injected by subsequent updates and reversals in policy, have so far exceeded even the most bearish forecasts.
Negotiators from the European Union and the U.K. are in talks with U.S. officials to try to alleviate their respective 25% and 10% blanket tariffs, while also grappling with broader tariffs on steel, aluminum and autos. Meanwhile, the rest of the world watches on to see whether red-hot tensions between Washington and Beijing will cool, averting a trade war between the two biggest economies that would have far-ranging repercussions.
Two major earnings reports have already landed in Europe, providing an indication of the tone to come.
Luxury giant LVMH said its categories such as beauty, wines and spirits were vulnerable to a pullback in spending by “aspirational clientele.” Dutch semiconductor firm ASML, which manufacturers chipmaking machines critical to global tech, said tarifs were “creating a new uncertainty” around demand. But neither was able to quantify the scale of the impact.
Here are five other major European firms yet to report earnings that could face big hits from the tariff turmoil.
Maersk
Danish shipping giant Maersk, a bellwether for global trade, is poised to report first-quarter earnings on May 8. Shares of the company have been highly volatile in recent weeks, moving sharply as investors react to the Trump administration’s back-and-forth tariff announcements.
An escalating trade war between the U.S. and China, the world’s two largest economies, has been a major source of concern for the maritime and transport sector.
Analysts expect Maersk’s first-quarter earnings before interest, depreciation, taxes and amortization (EBITDA) to come in at $2.3 billion, according to an LSEG-compiled consensus, down from $3.6 billion in the final three months of 2024.
Maersk earlier this month described the U.S. tariffs as “significant” and — in their current form — clearly not good news for the global economy, stability and trade.
“It is still too early to say with any confidence how this will ultimately unfold. We need to see how countries will respond to these plans — and to what extent they choose to negotiate, impose counter-tariffs, adjust import duties, or pursue a combination of these measures,” the company said in a statement on April 3.
Shell
Shell is scheduled to report first-quarter earnings on May 2. It comes after the British oil giant in March announced plans to boost shareholder returns, cut costs and double down on its liquefied natural gas (LNG) push.
In a later trading update, Shell trimmed its first-quarter LNG production outlook, citing unplanned maintenance, including in Australia.
A Shell logo in Austin, Texas.
Brandon Bell | Getty Images News | Getty Images
Oil and gas stocks have been caught up in tariff-fueled market turmoil in recent weeks, with energy majors exposed to growing recession fears, subdued oil demand and falling crude prices.
Analysts at wealth manager Hargreaves Lansdown said earlier this month that Shell’s “sharpened focus on efficiency and quality leaves it well-placed to grow free cash flow and shareholder distributions.”
But it can’t control the oil price, Hargreaves Lansdown noted, “so, investors have to be prepared for the relatively high level of volatility that accompanies the entire sector.”
Shell is expected to report first-quarter adjusted earnings of $5.14 billion, according to an LSEG-compiled consensus, down from $7.73 billion in the same period a year ago. The energy major reported adjusted earnings $3.66 billion in the final three months of 2024.
Equity analysts have singled out Shell as the best capital allocator among its European peers, pointing toward the firm’s steadfast commitment to cost discipline under CEO Wael Sawan.
Volkswagen
Germany’s Volkswagen is one of many automotive firms expected to take a hit from tariffs — particularly those on Canada and Mexico — though results out April 30 should give a clearer indicaion of how much it expects to be able to shoulder through operations in Chattanooga, Tennessee.
The U.S. in April implemented a 25% charge on all foreign cars imported into the country, which appears to have already caused some panic-buying.
Volkswagen’s Chief Financial Officer Arno Antlitz told CNBC last month the company was in favor of open markets but already felt “like an American company” due to its thousands of U.S. employees.
However, analysts warn tariffs are especially negative for German carmakers which export thousands of vehicles a year to the U.S., while many cars produced in the country still require European-made parts.
Volkswagen is expected to produce higher year-on-year revenue in the first quarter, up to 77.6 billion euros ($88.2 billion) from 75.5 billion euros, an LSEG-compiled consensus shows. Earnings before interest and taxes (EBIT) are seen dipping to 4.03 billion euros from 4.6 billion euros.
Lufthansa
As geopolitical tensions mount, some have questioned whether travel demand will suffer or trends will change — and the results of German airline group Lufthansa, due April 29, could hold some clues.
Lufthansa CEO Carsten Spohr told CNBC in early March that he expected global demand to drive “significantly” higher profit in 2025 and had not seen any dent in transatlantic bookings. But a lot has changed since then, with the scale of Trump’s tariffs and rhetoric fueling public anger and even boycotts of U.S. products.
A Lufthansa Airlines plane taxiing for takeoff as an United Airlines plane lands at San Francisco International Airport (SFO) in San Francisco, California, United States on February 7, 2025.
Anadolu | Anadolu | Getty Images
Figures for March published by the International Trade Administration showed a 17.2% year-on-year fall in visitor arrivals from Western Europe to the U.S., against a 3.4% dip from Asia and a 17.7% increase from the Middle East.
Lufthansa Group, which includes the German flag carrier along with SWISS, Austrian Airlines, Brussels Airlines and Italy’s ITA Airways, has already been grappling with challenges including strikes, global price pressures and Boeing aircraft delivery delays.
According to an LSEG-compiled consensus, analysts expect the group to report revenue of around 8.07 billion euros in the first quarter, up from 7.4 billion euros the previous year, and a roughly $630 million loss in EBIT, trimmed from a $871 million loss year-on-year and down from $482 million profit the prior quarter.
Novo Nordisk
Drugmakers have little idea how their access to the critical U.S. market will be impacted in the coming months.
The Trump administration said last week that it had opened an investigation into how importing certain pharmaceuticals affects national security, widely seen as a prelude to tariffs on drugs — also suggested to be happening in the coming months by Commerce Secretary Howard Lutnick.
There remains no clarity over what size the tariffs will be, and when or even if they will come into effect.
For Denmark’s Novo Nordisk, Europe’s second-largest listed company, that leaves exposed the U.S. sales of its hugely popular obesity and diabetes treatments Ozempic and Wegovy. Traders will be hoping its May 7 results give an indication of how it is preparing for that, and how much can be offset by its “very significant” manufacturing set-up in the U.S.
Emily Field, head of European pharmaceuticals research at Barclays, told CNBC earlier this month that tariffs were the “No. 1 question on investors’ minds.”
— CNBC’s Karen Gilchrist and Annika Kim Constantino contributed reporting.
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