Cramer's First Hour -- November 4, 2024

Locator: 48697CRAMER.

The two stories that interest me the most from Cramer's first hour? Chips and EVs. 

Let's begin here: link down below. 

Democrats hail electric vehicles as the “future,” but their autotopia keeps getting deferred. Ford and Stellantis this week joined a conga line of auto makers rolling back EV investments amid flagging consumer demand. Has the government ever subsidized a product that loses this much money? 

Ford announced Wednesday that it will cancel production of an electric SUV and delay an electric pickup truck. As a result, it expects to take a $1.9 billion write-down. Believe it or not, this may be less costly than producing EVs that Americans don’t want. Ford lost an astonishing $44,000 on each EV it sold in the second quarter and expects to lose $5 billion on them this year.

Stellantis this week said it would delay investments to retool its shuttered plant in Belvidere, Ill., for EV production. The stated reason: “it is critical that the business case for all investments is aligned with market conditions and our ability to accommodate a wide range of consumer demands.” Imagine that—catering to consumer, rather than government, demands.

Auto makers’ problem is that California and the Biden Administration are forcing them to make increasing numbers of EVs that are piling up on dealer lots. Companies are slashing prices to sell them, resulting in hefty losses. Meantime, Americans are balking at paying more for gas-powered cars, making it harder for the car makers to use those profits to subsidize EVs.

Such losses and cross-business subsidies aren’t financially sustainable even with generous government subsidies. The Biden Administration last year awarded Ford’s joint battery venture a $9.2 billion low-cost loan for three giant electric vehicle battery factories and last month announced a $335 million grant for Stellantis to convert the Belvidere plant to build EVs.

Locator: 48684CRAMER.

Cramer's first hour: a mix of facts, factoids, opinions from various sources -- often not cited -- while listening to Cramer's first hour on CNBC.  

Personal investing: Sophia told me she added more to her position(s) in the Magnificent 7 this morning -- all seven!

The new Dow! Link here.

EVs: by this time -- twenty years into the EV revolution, we should be farther along the s-shaped curve. The EV transition that isn't -- The WSJ.

A dead cow:

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• Reminder: I am inappropriately exuberant about the US economy and the US market.
• I am also inappropriately exuberant about all things Apple. 
• And now, Nvidia, also. I am also inappropriately exuberant about all things Nvidia.
• Longer version here.