Struggling consumers are falling behind on car payments, and many are having their vehicles repossessed. Here’s the story of 21-year-old Kobe Hatch (BBG). With higher interest rates, his monthly car bill cost nearly $1,000 and he fell behind on payments. His car was repossessed, and without it, he got fired from his job as an…
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Five major electric vehicle trends; here’s the 2023 outlook
2022 was a milestone year for electric vehicles (EVs). The global electric vehicle market share crossed 10% for the first time. Sales grew 68% from the previous year. What’s the forecast for the industry in 2023? Code: 60s music for nothing in, 70s for new stuff, 80s for danger. Danger ahead. Didn’t get that reference?…
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Elon Musk dumps more Tesla shares; goes against his word
This week, Elon Musk disclosed an additional $4B sale in Tesla shares, despite saying he was done selling — bringing his total liquidation to ~$36B in the past year. $TSLA has lost over half its value this year, and investors are having doubts. Will he continue selling his remaining ~14% of Tesla shares? That depends…
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Carvana’s money-losing vending machine is eating investors’ cash
Online car retailer Carvana (NYSE:CVNA) — a.k.a. the “vending machine for cars” — is in the hot seat. During COVID, it more than tripled to as high as $370 per share and was widely pushed by finfluencers. Last Friday, Carvana reported earnings that were way short of expectations — sending its stock tanking nearly 50%…
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Ferrari’s earnings show why operational excellence leads to strong investor returns
Find a quality business at a fair price, and the rest will take care of itself. Aston Martin (LON:AML) investors are learning that the hard way. Two luxury car makers — Ferrari (NYSE:RACE) and Aston Martin reported earnings this week that couldn’t look any more different. Supercar demand remains strong for all Ferrari is seeing…
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Tesla Earnings: Did Elon Musk shoot himself in the foot?
Lots of chatter after Tesla’s earnings report. Investors are getting worried about Tesla after the release of their third-quarter financial results. But it was a record quarter, right? $21B in sales, with net income doubling to $3.3B. For most companies, this would have been impressive. But not for Tesla… There are extremely high expectations of…
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CarMax earnings send the auto market crashing
Earlier this year, we questioned whether a recession was priced into auto stocks yet. After all, who wants to buy a car in a recession, especially with rates rising so fast? We got the answer yesterday. Used car dealer CarMax (NYSE:KMX) reported earnings that missed analyst forecasts on nearly every metric. $KMX fell 25%, and…
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What’s underneath the Porsche IPO?
Porsche is going public on the German stock market today with an expected valuation of $68-$73B — separating from Volkswagen to trade as its own publicly traded company. It’s one of the worst times to go public with markets tanking and an unstable economy. But hey, it’s not our call. The bear case: Valuation, China…
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The Porsche IPO is plagued with conflicts of interest
Sports carmaker Porsche AG — currently owned by Volkswagen (VW) — is planning to go public on the Frankfurt Stock Exchange, expected at the end of September or the start of October. With an expected market value of up to $60-85B — this could become one of Europe’s largest IPOs. Bad blood: Porsche and Volkswagen…
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Tesla beats earnings, but investors should be worried about their falling margins
Tesla reported mixed earnings yesterday, which showed what analysts expected — the second quarter was going to be challenging for the top electric vehicle maker. $TSLA was little changed after reporting earnings. What’s the big deal? Many of Tesla’s problems were known beforehand: Tesla’s deliveries were impacted by the shutdown of its Shanghai production facility…
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