“Yeah. Thank you. I think you can expect steady improvement throughout the time period as the UEV products come on board '27 and then get even more profitable in '28 and beyond, with additional variants that's gonna improve the profit margin as will the introduction of B vehicles in Europe that also will be coming on board as well.”

In context

“nt model even though it's still at high levels, as Sherry said. We are descaling that investment. So the goal is to set up the company over the next couple years to be that 8% margin company, and that's the kind of capital we need to invest. Emmanuel Rosner: Thank you. And then as a follow-up still on the Model e then, I guess to get to this ultimate target, you probably, you know, also have to execute on bringing back Model e to profitability. Can you talk maybe about some of the levers and cadence between now and 2029? It seems like you're having a lot of savings this year on gen one, but investments on the new generation. Is the improvement towards breakeven is that gonna be back end loaded towards 2029, or can we expect some steady improvement throughout the time period? Sherry House: Yeah. Thank you. I think you can expect steady improvement throughout the time period as the UEV products come on board '27 and then get even more profitable in '28 and beyond, with additional variants that's gonna improve the profit margin as will the introduction of B vehicles in Europe that also will be coming on board as well. And all of that's gonna be happening some of the gen one you know, becomes lower volume. Emmanuel Rosner: Thank you. Operator: Your next question will come from Ryan Brinkman with JPMorgan. Your line is now open. Please feel free to unmute. Ryan Brinkman: Thanks for taking my question. I was intrigued by Jim's comment that full-year 2025 tariff cost tracked $2 billion versus the $1 billion. Was communicated at the time of the 3Q earnings due to a late-year change in tariff credits on auto parts such that full-year EBIT pro forma for this would have been $7.7 billion, which is substantially better than the 6 to $6.5 billion that was guided to on the 3Q call. Firstly, can you help on what exactly was the regulatory change? I'm aware of the change to tariff on the non-USMCA compliant parts.”