The values given to the new start-ups in the electrical vehi...
The values given to the new start-ups in the electrical vehicle field are extremely heavy in wishes, hopes and dreams.
They have to go a very long ways to be able to catch up with $General Motors(GM.US$ and $Ford Motor(F.US$. Putting together one car in a warehouse is a very long ways from being able to build and sell 1,000,000 per year. How much is it going to cost to build a plant to manufacture cars? How are the finances going to work? What about building a supply chain? What about sales and distribution? What about unionized employees. By the time those items are taken care of, their cash supply will be severely diminished.
I cannot believe that knowledgeable, serious investors are going to invest much of their hard earned money in ideas like those.
Just a thought or two.
Peace.
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hairless : "I cannot believe that knowledgeable, serious investors are going to invest much of their hard earned money in ideas like those."
Not many of those types of investors will - but if you hadn't noticed, the markets have been goosed by an entirely new class of investor.
As for capital requirements for these Newcos - yeah, they require lots of capital, but guess what? Investors are giving it to them - not by the million, not by the billion, but by the tens of billions.
Will lots of investor cash be lost? Probably.
Dixonnn hairless: but if you hadn't noticed, the markets have been goosed by an entirely new class of investor.******* government
Abdul Dickson : You'll catch a lot of heat for this post of which I'm in complete agreement. I've spent my career in manufacturing/supply chain and the startup costs and ongoing challenges are surmountable, but don't scale easily or inexpensively. I held traded Rivian for 2 days and got out well ahead of the game. I did so only to capitalize on the FOMO investors. I wish no one harm in their investing thesis, but I think there will be a lot of pain around Rivian if investors aren't careful.
Moo News Support : All true. However you will notice that Wall Street provides Tesla with as much capital as they want and whenever they need it (review the stockholders equity section of Tesla's balance sheet). If the same holds true for other EV start-ups (which isn't a given) then "those items will be taken care of".
It is as if Wall Street is determined to make the complete transition to EV by whatever means necessary for as long as it takes.