Brewing Automotive Financial Crisis

[jpd80]

4 hours ago, Rick73 said:

 

 

Tesla stock is down 65% YTD according to morning news, so he may have plenty to be concerned about.

 

A quick look suggest Ford, GM, and Toyota are not being hit quite as hard, which I suppose can be expected since higher-price luxury items are first things buyers cut back on.  Or maybe Tesla stock was just overpriced to start with.  I’m not a multi billionaire either so don’t know where all this is headed.  My only personal thought is that vehicles have become too expensive for many American families.  Stellantis CEO made similar comments a while back regarding Europe, warning too many buyers could be priced out, so problem may not be limited to US economy.

Tesla’s stock price has nothing to do with operations, it’s been overinflated for quite a while,

even Musk has said so. Irrespective of what’s happening at Twitter, I think Musk will continue

to cash out his Tesla stock before it comes back to pre 2020 speculation pricing.

 

Musk also expressed a desire to Take Tesla private, so maybe the end game is to cash out,

let the stock price crash and then buy back cheap……..by then, there’s no reason to not sell…..

Edited December 21, 2022 by jpd80

[tarheels23]

1 hour ago, silvrsvt said:

Level 5 is nothing more then a pipe dream for another 20-30 years. 

and since I'm 74 it does not affect me in any way.

[Harley Lover]

16 hours ago, silvrsvt said:

Level 5 is nothing more then a pipe dream for another 20-30 years. 

 

You're being too optimistic. 

[akirby]

3 hours ago, Harley Lover said:

 

You're being too optimistic. 

Even the industry stalwarts and evangelists have admitted it’s not feasible for general public roads.  Except the one who posts here of course.   It does have a future in controlled environments.

[Harley Lover]

26 minutes ago, akirby said:

Even the industry stalwarts and evangelists have admitted it’s not feasible for general public roads.  Except the one who posts here of course.   It does have a future in controlled environments.

 

Agree - limited geofenced areas. 

[silvrsvt]

3 hours ago, Harley Lover said:

 

You're being too optimistic. 

 

 

LOL The only way I can see it being even remotely possible is basically a modern day national highway act like what happened in the 1950s with making every single road "smart" with sensors that could communicate with cars...but that would costs trillions of dollars and the goverements can barely keep a "stupid" road passible for regular traffic. 

[fuzzymoomoo]

1 hour ago, silvrsvt said:

 

 

LOL The only way I can see it being even remotely possible is basically a modern day national highway act like what happened in the 1950s with making every single road "smart" with sensors that could communicate with cars...but that would costs trillions of dollars and the goverements can barely keep a "stupid" road passible for regular traffic. 

Just print more money. Isn’t that how government solves all of its problems these days? 

[rperez817]

Data from Experian Automotive. https://www.experian.com/content/dam/noindex/na/us/automotive/finance-trends/2022/q3-2022-state-of-automotive-finance.pdf

 

Highlights.

[The Handler]

I love cars but not enough to have perpetual payments on one. 

[jpd80]

Current cost hikes are so unfair and hit those on the edge economically, all because the fed wants to punish people for paying those higher prices. It’s not enough that corporates gouge people on higher prices, now the banks want in as well.

 

Sounds very one sided to me but I guess that’s the harsh reality when interest rates come back

Edited December 27, 2022 by jpd80

[2005Explorer]

The higher interest rates must be starting to work at least at my local dealership. They have the most new vehicles I've seen on the lot for a long time and my salesman said things have really slowed down even on the used side.