At some point we reached peak horse because there was a superior replacement. We will reach peak car because car ownership will be replaced by a combination of ride sharing and autonomous car service, which will all be using the same 5 models of cars. Just like you still have people who ride horses in Colorado, Texas,…
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Car ownership= $400/month
#2 is huge among the next generation. They rather spend that money on “experiences” and personal items - hitching a ride on Uber or Lyft is their preference. My son’s high school actually has a line of ride sharing pickups for kids who literally live less than half a mile away. It’s ridiculous.
It’s always been this way with capitalism. Quarterly earnings means executives are either receiving bonuses or pink slips. Why do you think “environmentally aware” companies are privately owned and less profitable than Walmart?
Sounds like the tobacco and pain medication industry denying any addictive qualities of their products, until the bodies start piling up.
Neutral: YES, we are definitely at peak car. The latter half of Generation Z (born 2005 to 2010) as an average, have less interest in driving and would prefer ride sharing. My teen son has 4 close friends, and only 1 of the 5 boys has a drivers license while the other 4 have zero interest in getting one. Obviously…
What’s striking is that despite the obvious red flags, these investors have nothing better to do with their money than invest in Faraday?
Ahhh yes, those heady days of pets.com
It’s as if Theranos was just a bad dream...
“exit strategy” = taxpayer bail out or sucker investors in an IPO
How can the EV business plan be that much better than Tesla’s? There is no “good” business plan for EV manufacturing when established automakers are struggling with it as well - they are all subsidizing early EV investments with the hope of making money on EV sales in the distant future. How many units do you think…
Neutral: invest in Faraday? I’d rather invest in Bitcoin at its peak.
1st Gear: general economic decline is a trend sweeping all automakers. A rising tide lifts all boats, and when it drops, well, we’ll see who’s not wearing a swimsuit. GM was smart to reduce production and close factories to preserve cash in the face of this global decline. See China and the sudden…
1st Gear: Ford investment in Rivian will not end well. Rarely do Fortune 500 companies play nice with startups, especially old school stuffy Detroit executives. This looks good on paper, but I have my doubts about the actual partnership in operation. It’s one thing if Ford is a passive investor, but I suspect there’s…
1st Gear: Too many cars means great Holiday lease promotions at the end of the year.
Not a fan of cars controlled remotely, but I am a fan of the new Volvo V60 wagon. Beautiful car
4th Gear: money is not a problem for Rivian considering it’s primary backers are Amazon, Sumitomo and the Saudi wealth fund (it’s raised over $1 billion already). So GM’s participation is less about money and all about logistics and manufacturing.
My dad paid $5,000 in 1985 (imagine what that is today) for the “best” home computer available for sale - a first generation IBM PC XT with optional 20 Mg hard disk (he was trading stocks at home so needed it for the live ticker feed). I literally had the fastest computer in my neighborhood. I remembered thinking that…
3rd Gear: unlike in the U.S., sentencing guidelines in Germany are much kinder to white collar criminals. So Winterkorn most likely will negotiate a plea deal that he would never have gotten in America.
1st Gear: sounds like we can still enjoy the M3 for a bit longer before everything feels/drives the same.