EVs -- The Last Nail In The Coffin -- November 9, 2023

Locator: 46005EVS.

Before today, everyone agreed, "higher for longer."

Earlier this morning the results of the US Treasury's bond auction was released. 

The auction not only confirmed "higher for longer," but higher for much longer."

This is what "most" analysts seem to agree upon with regard to bonds and long term rates:

• the Fed will NOT cut -- not even once -- in calendar 2024;
• in fact, the Fed could raise rates, not once, but possibly even twice;
• there WON'T be a recession in 2024 -- although it may feel like a recession to many folks.

This is the last nail in the coffin for the American EV companies: Ford, Rivian, Lucid, Polestar, and Arrival. It's possible TSLA will weather the storm but it won't be easy.

I'll post the graphics later, but go ahead, check them out for yourself.

Later, here are the graphics:

By the way, note that F is the only EV company paying a dividend, and the dividend is not trivial. Does anyone really think F will maintain a 6% payout with the headwinds they are facing:
the new UAW contract;

• "higher for longer" could greatly impact sales;
• stepping back from EV manufacturing -- great for short term results but horrendous for strategic planning