I don’t know if you have seen this but automobile sales have been dropping, mainly due to the economy. There are a few makers that are doing well but in general the big automakers are not.
Automotive Sales Data and Statistics
www.goodcarbadcar.net
Ahhh ... yes and why I feel like I want to own GM or Ford or both!
No one is really doing well as far as the stock price and that is what matters to me.
SO to me, GM and Ford are selling at 3 to 5 times earnings and a company like Tesla at 200 times earnings. Tells me Tesla can take a big hit and GM and Ford can only go up.
Here is why. GM and Ford would be selling cars if they could produce them but they have supply issues right now holding them back. We all know, supply issues will at some point subside and to me, at that point the stocks will too. I do not in anyway see this as "the economy"
The economy to me has never been in better shape as far as demand goes, maybe I will go out on a limb and say the economy has never been stronger in modern times (last 50 years) here in the USA ... the only thing to me is it is held back as we come out of a world health event unknown to modern man that created a shortage of materials needed to produce goods.
Americans are itching to spend money, flush with cash, an economy with 0 unemployment rate for those whom wish to work. I dont know, how can it get any better than this??
More or less, again, to me, all the bad news is built into the GM/Ford and go only go up, while all the good news is built into a company like Tesla which I personally see as risky once all the big guys are up and running at full speed in the coming 12 months..
AS far as the auto industry, I think its in fantastic shape to go to the moon, so much pent up demand. Dealers dont have cars to sell, at least around here and that goes for Toyota and Honda too! Once all the big guys start cranking them out I see the Tesla's taking a hit in 24 months or so.
We will see, really interesting to me. But what do I know? Nothing except my thoughts on things, which as you know normally doesnt mesh with everyone in here
but that's ok too. Forums are great to "hear" a wide variety of thoughts.
BTW, I like that link you supplied and going to save it. This is my point, you see all that red? What happens to Tesla when all that red is cranking out EVs?
You do notice BMW in the green, their fossil fuel line is doing fine and the reason they are in the green is I have first hand knowledge there have been no supply issues for them here in the USA which is their biggest manufacturing plant in the world. They weren't as dependent on China or better said had a chip supply line that most other makers did not. There were some smaller issues but production didnt stop and the cars were sidelined, lets say, until a certain radio came into stock, small stuff. But their plant never shut down or slowed down.
With all my ranting .. I am not saying I am buying into Ford or GM, I do invest long term and fully invested but I am very interested in them and I never know if I am going to do something unless I am going to get rid of something else ...
