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Toyota was right to focus more on hybrids than on electric vehicles
It's 2022, electric vehicles are selling like hot cakes as gas prices are reaching levels consumers have never seen before. The chip shortage has hurt auto production to the point where some companies like $TSLA would cut corners and build cars with fewer chips in order to get more cars on the road and other automakers choose to produce less vehicles to ensure quality. Toyota, the largest automotive producer, chooses to be cautious on electric vehicles and instead doubles down on hybrids and hydrogen-powered vehicles. According to Toyota's CEO, he defends his cautiousness on producing many electric vehicles for these reasons:

  • not all consumers are willing or able to adopt it
  • bans on the sale of gasoline powered vehicles will be difficult to achieve
  • offering cars powered in multiple ways is more realistic than going all in on electrification
  • it's more environmentally friendly to produce hybrid vehicles than electric vehicles

Fast forward to today, automakers are now choosing to invest more in producing hybrid vehicles as demand for electric vehicles suddenly stopped accelerating. With hybrids, automakers are able to appease consumer demand and avoid costly penalties related to federal fuel economy and emissions standards. At the same time, consumers will be consuming less gasoline and will get closer to having an electric vehicle. Not to mention that hybrids are cheaper and relieve many of the issues that electric vehicles already have including range anxiety.

Bravo Toyota for seeing the future of the automotive industry better than the rest of the industry.
CNBC
Why automakers are turning to hybrids in the middle of the industry's EV transition
Automakers are reconsidering the viability of hybrid vehicles to appease consumer demand and avoid costly penalties related to federal fuel economy standards.

Stay Vigilant
For my Stay Vigilant blog this week, I am sharing the Macro Matters webcast that I did with Tony Zhang, Ph.D., GMP, MBA, CFA. We discuss what is driving the markets and where there may be risks.

Please like/share/subscribe if you enjoy

More importantly ... Stay Vigilant
#markets #investing #finance #stayvigilant

open.substack.com
The macro that matters
I had a discussion this week on what the markets are pricing, and what that means for risk-taking

Yegor's avatar
$40.3MFollowers
BWM - Issue # 36 - December 10, 2023
Spotify, M&A, Shorting, Charlie Munger, Tobacco, Charter, Food, Payments, Asia, Moats, Tech, Gaming, Forgotten Forty, Books, and other things to munch on...

www.from100kto1m.com
BWM - Issue # 36 - December 10, 2023
Spotify, M&A, Shorting, Charlie Munger, Tobacco, Charter, Food, Payments, Asia, Moats, Tech, Gaming, Forgotten Forty, Books, and other things to munch on...

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British American Tobacco: Identity Crisis
£25,000,000,000. Twenty-five billion British pounds sterling. This is the amount that British American Tobacco will write down the value at which it holds several of its United States brands—now to carry with an estimated useful life of 30 years rather than indefinite. It would appear that the company has twisted the clock, set the stopwatch, flipped the hourglass, or whatever; the U.S. business is going to zero, and there is nothing to do but to watch the stock price follow suit. The company is in crisis.

If I had to guess, ~95% of the coverage provided to British American Tobacco since the release of its 2023 Second Half Pre-Close Trading Update can likely be distilled into the above, conforming to and perpetuating the long-prevailing narrative that the entire tobacco industry, not just British American Tobacco, is doomed. Such approaches to coverage are efficient at attracting eyeballs and garnering clicks; the priority of today’s media outlets. As for accuracy and appropriately capturing the state of the entire company as a going concern, they also happen to be insufficient.

There is no denying that British American Tobacco is facing considerable challenges. In the United States, the company’s largest segment by operating profits, volume declines have accelerated, illicit disposable vapes continue to proliferate, and new regulations are on the horizon. All considered, while the exact timing of the impairment charge was a surprise, the...

Read the full piece at the link below:
post media
invariant.substack.com
British American Tobacco: Identity Crisis
Note following the 2023 Second Half Pre-Close Trading Update.

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