Warning On The Rise Of The Automobile Bear Market
Date
12/19/2024 3:12:36 PM
(MENAFN- Baystreet)
Except for Tesla (TSLA), which happened to by over 8% yesterday, electric vehicle makers and automobile firms are potentially in a bear market. Rumors that Honda Motor (HMC) would merge or form a joint venture with Nissan (NSANY) are indicators that the car industry is in trouble.
In 2023 through 2024, Polestar (PSNY) struggled while Fisker filed for bankruptcy. Rivian Automotive (RIVN) found support from Volkswagen's (VWAGY) multi-billion-dollar investment.
Lucid (LCID) raised cash when its Saudi Arabia-based investors increased their investment. Still, Tesla will likely increase its market share as it leverages its low cost of production.
In the U.S., Ford Motor (F) closed at $9.69 on Wednesday. The U.S. is escalating its trade war against the world and considering tariffs. This will disrupt Ford the most. It also hurts General Motors (GM). For now, GM stock is stronger than Ford or that of Stellantis (STLA).
Ford also needs to address its ongoing quality issues. It appointed a new head of quality. It will find an unnamed leader to take Jim Baumbick's responsibilities in quality assurance. Ford will give Baumbick the responsibility for its EV programs.
Ford will need to stop cutting costs on input materials. It needs better staff who have the attention to detail and quality. Until it sacrifices profit margins to raise product quality, Ford stock will continue on its bear market phase.
MENAFN19122024000212011056ID1109013864
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.