What happens when market participants start smelling blood in the water around the auto OEMs who are touting the "demand problem" as their reason for cutting back?
As investors compare automakers, some are bound to notice that there are EV makers who, for some reason, are not being affected by the same demand problem the others try to paint as covering the entire canvas. It is really just them painting within the lines of their own coloring book.
When those invested in legacy OEMs decide to move away from investment in the companies which are curtailing EV production and experiencing rising union costs, amid rising inventory and softening demand for all of their products, they will be looking for a better place to invest.
Which auto company already has a track record of exceeding expectations during difficult economic times? Whether a pandemic, parts shortage, or ridiculous news stories that fall short of telling the full story about whose demand problem this really is. Which company makes the best selling vehicle in the world? Is it ICE or EV? This might be a clue for the clueless, but they are unlikely to make the distinction.
If only there were one company with solid financials, new products, diversity in several compelling projects which could significantly alter the future of mankind, and which was founded under leadership that has been wildly successful in multiple disruptive business enterprises.
What will happen?
Will those investors be able to find shares at a discounted price for a company that is likely to continue to rally, despite the economic malaise affecting so many other possible recipients of their bank roll?
Honestly, I doubt that most will find such a company.
But, some will. Then, they will tell two friends (and their Uber driver), who will tell two friends, ...
HODL
