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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (153067)	2/7/2020 7:29:10 AM
From: stsimon	Read Replies (3) \| Respond to of 217773

In addition to the well publicized short covering, I suspect that the recent strength is bring driven by Tesla's victory in Michigan. The government had been trying to prevent the Tesla business model from being used there. Expect longer term destruction of the powerful auto dealers monopolies in the various states as their main source of revenue, the required regular maintenance of ICE cars, collapses as electric cars begin to increase more rapidly in numbers. Electric cars have half the parts of ICE cars, mostly in the engines and transmissions, and need very little maintenance. In Europe ICE cars are going to be banned over time, and legacy auto companies world-wide will be burdened with pension and facilities costs that Tesla does not have. In addition, many of the legacy automakers are well behind the learning curve on alternative energy vehicles. In the short run Tesla is likely very over priced and vulnerable to big price swings. The bigger story in the intermediate to longer term is how many of the legacy auto companies, and their parts suppliers, will survive, given the amount of labor they will need to eliminate, and the technological challenges they must overcome in the transition to alternative propulsion systems. I expect Ford to be among the first to go under.