A company specializing in automotive supply chains made a strategic decision several years ago to heavily support American electric vehicles (primarily Ford and GM). However, both automakers subsequently cut their pure electric projects. In early 2025, this supply chain company initiated major layoffs. Fortunately, its non EV projects remain quite robust. Their primary semiconductor supplier is MU. In the latter half of the year, MU indicated price reductions for 2026, leading the company to be highly optimistic about profitability that year. However, in December, MU announced significant price hikes for all products except one minor adjustment! (MU's stock price has surged 47% since December).
This company was swamped before Christmas in December, scrambling to revise budgets. The COO, who had previously assured the board of cost reductions for 2026, now had to explain costs surging 1.5 times. They also had to justify raising prices immediately after setting them with downstream clients like GM and Ford. The COO was stressed to the max.
The only silver lining? Their employees immediately bought MU stock.
New vehicles will definitely see price hikes in 2026, and the used car market is once again being driven by CVNA.