Tesla, a company that straddles autonomous vehicles, artificial intelligence-driven robotics, and the global energy transition, has long insisted that its future would hinge on its ability to reinvent the battery. For years, that bet appeared shaky. The company's homegrown, large-format 4680 battery—once touted as a breakthrough—became a source of doubt, with critics questioning whether Tesla had quietly abandoned the effort.

In an earnings call held on February 3, NXP Semiconductors NV reported fourth-quarter revenue of US$3.34 billion, representing a 7% increase year-on-year and a 5% sequential rise. Management characterized the 2025 fiscal year as two distinct halves: initial demand weakness, followed by an acceleration in the second half. The company indicated that its performance in the latter part of the year has allowed it to return to its long-term financial model, leading to an optimistic outlook for 2026.

Samsung SDI, one of South Korea's three major battery makers, posted a steep operating loss in 2025 as the global market for electric vehicle batteries slumped. The company reported an operating loss of more than KRW1.7 trillion (US$1.17 billion) for the year. However, it is betting that a shift in strategy—anchored by local production of lithium iron phosphate (LFP) batteries in the United States and an expansion of its energy storage systems business—will return it to profitability in 2026.

China's automotive sector faces mounting profit pressure despite growing sales volume, with the average profit margin dropping to a near five-year low of 4.1% in 2025, according to the China Automobile Dealers Association. Dong-Shu Cui, secretary-general of the China Passenger Car Association, revealed that total industry profits reached about CNY461 billion (US$66.3 billion) in 2025, up only 0.6% year-over-year.

Automobiles are rapidly transforming into servers/smartphones-on-wheels with the advancement of autonomous driving technologies, which has led to a surge in demand for automotive memory. Samsung Electronics and SK Hynix are viewing the automotive sector as the next major battleground after AI, with both South Korean memory giants taking proactive measures to gain a foothold in this emerging market.

The global energy storage system (ESS) market based on lithium-ion batteries expanded in 2025. According to ET News and Ddaily, SNE Research reported that global shipments of lithium-ion batteries for ESS by manufacturers totaled 550 GWh in 2025, up 79% from 307 GWh in 2024, reflecting strong growth momentum. However, China alone accounted for more than 60% of the total. Unlike electric vehicle (EV) batteries, which are installed in vehicles and then sold to consumers, ESS batteries are typically deployed directly into regional projects. As a result, there is little discrepancy between shipment volumes and actual installed capacity.

Hyundai Motor Group's vehicle brands Hyundai and Kia saw their combined revenue exceed KRW300 trillion (US$208.6 billion) for the first time in 2025, breaking a record high. Even so, the two companies together absorbed as much as KRW7.2 trillion in costs due to US tariffs, leading to a marked decline in profitability.

Ray Wu, CEO of Suntek Motor Group, a leading Taiwanese importer and dealer of luxury brands including Porsche and Skoda, told DIGITIMES that while Taiwan's auto market is expected to outperform in 2026, the company does not view growth as merely a matter of securing larger allocations from overseas manufacturers. Instead, Suntek is pursuing a rolling, quarter-by-quarter operational strategy designed to manage inventory risk—an approach shaped by recent market volatility.

Vietnamese automaker Kim Long Motor announced plans to collaborate with Chinese electric vehicle (EV) manufacturer BYD on a US$130 million battery factory in central Vietnam, signaling a growing push into the region's electrification sector.

Tesla is entering what executives describe as a "turning point" year. As the company pushes forward with robotaxi deployment and Full Self-Driving (FSD) technology, it must also navigate potential bottlenecks in global semiconductor supply that could define its medium-term growth.