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A SPECIAL REPORT
(In case you missed it)
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By Vitaliy Katsenelson CFA
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| I am going to share with you excerpts from a research paper I wrote in 2018 about Tesla and electrical vehicles (EVs), which I have turned into a small book for reader convenience (it is available for free, here). I want to share these essays with you today because we are at a pivotal moment for traditional carmakers, and these essays, which I have not updated, present an important thinking framework about the industry. It is easier to convince shareholders and the board of directors to invest money into new factories when the demand for EVs is growing, even if you are losing money per vehicle. At least there is hope that once you get to scale and perfect new technology, the losses will turn into profits. However, when the demand for electrical vehicles stutters and your inventory of EVs starts piling up – which is exactly what is happening right now – investing in EVs becomes very difficult (I wrote about it here). Retreating to what you know, what has worked for almost a century, what doesn’t generate huge losses with every vehicle sold, and what your current workforce is trained for, and comfortable producing, seems like a natural decision. The decisions traditional carmakers will make over the next year or two will be very important for what their future looks like a decade or two from now. |
CITE: https://www.r2library.com/Resource
COMMENTS APPRECIATED
Thank You
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Filed under: "Advisors Only", "Ask-an-Advisor", Experts Invited, Interviews, Investing, Op-Editorials | Tagged: Buffett, DJIA, electric cars, EVs, NASDAQ, S&P 500, Tesla, value investors, Vitaliy Katsenelson | Leave a comment »
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