There is a lo tof transition taking place within the transportation industry. In the United States, the government is making a push towards EVs,. Or is it? There are many who believe the USG is making a push to protect the legacy automakers from completely failing.
In this video I discuss why this is a major concern and how it is already a foregone conclusion. Ford and GM will end up like Blockbuter and Kodak.
▶️ 3Speak
Summary:
In this video, the speaker discusses why he believes that legacy automakers in the US are facing significant challenges and possibly heading towards bankruptcy. The discussion centers around the transition to electric vehicles (EVs) and the impact of new legislation aimed at stimulating EV production. The speaker highlights how traditional automakers are lagging behind companies like Tesla in EV production and technology, and why this gap could lead to their downfall. He predicts a shift in consumer demand towards EVs due to dropping battery prices and incentives, potentially leaving legacy automakers struggling to compete. The speaker emphasizes Tesla's advantage in economies of scale and technology, suggesting that traditional automakers may require a government bailout to survive.
Detailed Article:
The speaker begins by addressing a question about why he believes US legacy automakers are on the verge of bankruptcy. He mentions the new bill aimed at providing stimulus for EVs and the proposed tax credits for non-union and union-made electric vehicles. He points out that this favors legacy automakers with unionized manufacturing plants and takes a dig at Tesla, noting its leadership in the electric vehicle industry.
The discussion shifts to legacy automakers' plans for electric vehicle production, citing General Motors' $35 billion investment to produce one million electric vehicles by the middle of the decade. Ford's electric F-150 is mentioned, with emphasis on only the base Lightning model qualifying for the EV credit due to pricing constraints. General Motors' current offering, the Bolt, is under recall, further highlighting the challenges traditional automakers face in the EV market.
The speaker forecasts a decline in demand for internal combustion engine (ICE) vehicles as consumers shift towards EVs, driven by decreasing battery prices. He projects a scenario where legacy automakers struggle to meet the demand for ICE vehicles as EV costs decrease, potentially leading to a financial crisis for these companies.
The video touches on the concept of economies of scale benefiting Tesla as it scales up EV production compared to traditional automakers. The speaker suggests that the competition narrative around legacy automakers catching up to Tesla has not materialized and questions their ability to do so given the changing market dynamics.
In conclusion, the speaker predicts that legacy automakers may require a substantial government bailout to survive the transition to EVs, as jobs in the industry face uncertainty. He underlines Tesla's resemblance to Apple in terms of technology and consumer appeal, indicating a significant advantage for Tesla in the evolving automotive landscape.
Overall, the video provides a detailed analysis of the challenges faced by legacy automakers in the US amid the shift towards electric vehicles, highlighting the potential implications for the industry's future competitiveness and viability.