CNBC/Banks dumping on the EV market today

CNBC seems to be all over the double downgrade of GM and Ford by banks.

  • Raw material price increase
  • Shortages

“Forced to sell EV that are money losers and not in demand”

Sorry did I miss something. Did gas prices drop?

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CNBC knocking something? Sounds like a time to buy.

A key investing principle is following the opposite of whatever CNBC is reporting. :rofl:

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There is only one company for whom EVs are a significant % of sales volume, and the margins are sorted out. They are still spending huge on CapEx to sell them (the Dealers take the hit for after-sales).

I thought about posting it this earlier this week, but Ford is also re-organizing into three divisions: ICE, EV, and Commercial. They’ve spent the last few months re-branding all of them, they’re going to make the dealers choose and not cover all of them — I imagine at least one dealer will sue, so they’ll have to reserve for that.

It’s by no means an EV apocalypse, but for the traditional OEMs the street is starting to go from unconscious ignorance to conscious ignorance on how much work is left to sell and service them at scale.

See also: Pelton would just buy Precor and 3-4x their sellable inventory, instead they uncontrolled-exploded both.

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This along with some recognition that the US Electrical grid is far behind in investment to meet some of the mandates

Then you have the supply chain shortages and natural resource scarcity which are impacting the ability to create EV vehicle batteries.

The last leg of the stool is disposal and recovery of these EV batteries when they expire and the replacement costs to the consumer 5-10yrs after initial sale.

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image

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I believe you’re referring to the “Inverse Kramer”

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When I saw this video, I put all my savings in $EVGO. I’m down today, but not worried at all.

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