Economics of How Legacy Autos Will Go Bankrupt by Failing at Making EVs
Tesla Economist Tesla Economist
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 Published On Aug 30, 2021

I have been exploring legacy autos, particularly GM and Ford's strategy on how they can compete in the EV (electric vehicles) industry. I eventually realize they simply can't. Tesla is just far too strong, there is no way GM or Ford have a chance, not just to compete with Tesla, but even survive as companies.

I played every scenario I can think of, including Biden giving their customers a huge tax credit to subsidize their vehicle prices. Or even a massive bail out to keep them afloat. No matter what scenario happens I can't see them making. Tesla are absolutely destroying them at every angle, and what Tesla leave, the Chinese EVs will take the rest.

I am not entirely sure what event it will be that will start the implosion of these companies, or what will cause the final blow, simply because there are so many. These legacy companies are too disadvantaged by their legacy ways. The new EV companies, like Tesla simply don't have these hurdles in their way. What were previously moats to keep competitors out, now keep legacy in.

With Ford launching their attempts at EVs of the Mustang Mach E, and their F-150 Lightning, we get to see just how short they are coming in their attempt to compete against Tesla or other EVs. It's unbelievable how far behind they are from Tesla. And that's just their actual specifications of their EVs. There is also the fact even if they were any good, and enough customers actually wanted them, then Ford still wouldn't be able to make enough of them anyway, they cannot get enough batteries.

The same is true for General Motors, with their monstrosity of an attempt of an EV, being the electric Hummer. They face the same problem as Ford, no one wants their EVs, and they can't make them cheap enough or offer enough range. They also can't source enough batteries even if they wanted to sell them at a loss.

Yet their CEOs, Jim Farley and Mary Barra, are happy to tell everyone that they will lead, yes lead, the way in the revolution of electric vehicles, and autonomous vehicles too, (AV). Implying they will beat Tesla. A company that is over 10 times their valuation, that has been in the EV industry for nearly 20 years.

Tesla's FSD is something of science fiction, whereas Ford's BlueCruise and GM's SuperCruise, well they can't even go around a gentle bend, because they don't have the AI capabilities. Tesla have the most advance AI, neural net and most powerful supercomputer in the world to achieve this, not to mention Tesla have collected the most data on driving than anyone else. Yet Ford and GM are claiming they can beat Tesla.

They have been exposed now, and all they can do now is lie. It's not like the CEO could suddenly openly admit that Ford and GM are faced for bankruptcy, and there is absolutely nothing we can do about it. Or else the stock price would crash, they would also lose their jobs, and their stock options Their job is to keep the stock price up, by any means necessary. Even it involves completely lying about what they can achieve.

I can't see how these companies will last until even 2025 before they go bankrupt, and this video explains why, and how it could all play out.

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This video is meant for entertainment purposes, not Tesla stock investment advice.

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