Auto-company investors watch their dollars as EV sales plunge

[Elderberry]

WND By Will Kessler Daily Caller News Foundation 1/1/2024

Consumers shunning costly battery-powered cars

Top automakers are flushed with cash after a profitable year, but investors are skittish about buying in as poor electric vehicle (EV) sales and moderating car prices tarnish the future outlook of the industry, according to The Wall Street Journal.

As a result of low investor confidence, top automakers like General Motors Co., Ford Motor Co. and Volkswagen stocks have changed 7.2%, 6.6% and -2.1% year-over-year as of Dec. 21, while Tesla has jumped 100.7%, according to the WSJ. The low enthusiasm comes as traditional automakers fail to create profitable EV operations that can compete with Tesla, which initiated a global price war on the commodity this year, coupled with moderating car prices that soared following the COVID-19 pandemic due to supply chain issues.

Global sales for automakers are expected to have risen 10% by the end of the year compared to last year, topping off three profitable years for the industry, according to the WSJ. As of the third quarter of 2023, Volkswagen, Tesla, GM and Ford held $40.4 billion, $26.1 billion, $12.6 billion and $9.3 billion in reserves, respectively, with Stellantis’ most recent report from the second quarter showing $32.8 billion.

More: https://www.wnd.com/2024/01/auto-company-investors-watch-dollars-ev-sales-plunge/

[catfish1957]

WND By Will Kessler Daily Caller News Foundation 1/1/2024

Consumers shunning costly battery-powered cars

Top automakers are flushed with cash after a profitable year, but investors are skittish about buying in as poor electric vehicle (EV) sales and moderating car prices tarnish the future outlook of the industry, according to The Wall Street Journal.

Caveat Emptor-

Check out these P/E ratios of the culprits.....

Ford= 7.95, on a Market Cap of $48B
GM= 5.06 on a Market Cap of $49B

Anyone with any investment savy knows these are Penny Stocks in the guise, or disguise of investable equities.    Investors know that at these low P/E's that the company at these sales as dogs. If I am investng in a sidewise performing stock, it better be a damned great divy play.

Woof Woof, this U.S. sector is neither, and is buying into the EV business model like Lemmings going for a swim.