Other EV makers dealing with huge demand, but what about Tesla?
While other automakers struggle to ramp up production, $TSLA CEO Elon Musk says that his factories are "gigantic money furnaces".

It's unusual for an automaker to say this as demand for electric vehicles is surging. Tesla has built more factories and yet it seems like it has more production capacity than demand.

While $RIVN $LCID $F $GM and other automakers producing electric vehicles seem to need to build more factories to meet the demand, $TSLA is seeing that it needs to scale back operations.

The competition looks to be beating Tesla.

Was just a matter of time that Tesla would face serious competition
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Luka 🦉's avatar
$97.1m follower assets
Ford F-150 ⚡ Lightning 📰 #WSJ
Here is another free article I share with you from my Wall Street Journal subscription.
Cheers 🍻

If I look at the $F F150 and the $GM Silverado, I don't understand how people got excited from the $TSLA Cybertruck 🤣

What’s Hot 🔥
In this week's newsletter, we showcased our most popular charts from this last month! Let's check a few of these out👀.

Spend 💵 to Make 💵?

At a time when investors are worried about companies burning cash, $AMZN is the only mega-cap stock doing just that. It's been investing heavily over the past couple of years. Will these investments drive future e-commerce dominance?

The Most Profitable 🚗 Company

Did someone say energy? What about clean 🌱 energy? In just two years, Tesla now has industry-leading margins, surpassing Ford $F and GM $GM. Can the legacy automakers catch up, or will Tesla leave them in the dust?

Want to see the rest? Visit our home page viz.wiijii.co, or you can read the rest of our newsletter here👇.

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interesting to see $FB - $META not even in the top 3 when it comes to spending yet the perception is that they are "burning" the most cash...
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Employee Efficiency
With Elon Musk talking about cutting 10% of jobs at Tesla $TSLA, the market has taken a hit. Many other companies have recently instituted a hiring freeze or laid off some employees.

Let's look at some industries to see the relationship between employee count and revenue!

Airlines✈️ -

Delta $DAL seems to be the only outlier generating more revenue than both $AAL and $UAL with fewer employees.

Retail 🛍️-

Costco $COST seems to have a large advantage generating more than double the revenue the expected revenue per employee.

Auto 🚗 -

Speaking of Elon, Tesla $TSLA doesn't seem to have a large advantage in this stat. In fact, both Ford $F and GM $GM look to be performing better based on this metric.

Software 💻 -

There doesn't seem to be any strong outliers for SaaS stocks. However, looks to have $DDOG has a slight advantage and $OKTA seems to have a slight disadvantage.

Like what you see?

You can make any of these charts in just three clicks from our home page!
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$GM is officially in the robotaxi business
Receiving the first permit to provide driverless taxi rides in California is a big win for General Motors. This development provides a new bull case for $GM.

Personally, I think that GM should spin-off the Cruise division shortly after it starts generating revenue. That way, GM can unlock more value to shareholders.

Thanks for sharing, @dissectmarkets. But I'm having a hard time seeing how permits to operate 30 driverless cars (in just 1 city and except between 10pm to 6am) substantiates a new bull case for a company like $GM when they're not even generating revenue yet. I'm growing tired of the ongoing driverless taxi story. As this article points out, driverless taxi service has been a "long, delayed journey." If $TSLA, with its troves and troves of data hasn't cracked the FSD nut then how are we believe Cruise has done so?
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Should $GM and $F spin-off their electric vehicle business segments?
On February 18, 2022, $F shares surged as CEO Jim Farley was looking at the benefits and risks of spinning-off their Ford's vehicle business.

Unlike Ford, $GM chose not to cater Wall St.'s demands in spinning off their electric vehicle business.

Investors want these automakers to spin off their electric vehicle businesses because they believe that it will unlock value. Auto executives are hesitant to spin off their electric vehicle business for two reasons:
  1. their electric vehicle business is young and still relies on the resources of their parent company to survive and build a foundation
  2. if ever electric vehicles do go mainstream, then shareholders of the ICE-vehicle business could essentially see their stake go to zero

Regarding the second point, the advantage that the ICE-vehicle business would have is that they have the infrastructure to make any vehicle that has many moving parts. Even if cars of the future could stop running on gas, they can run on other fuels like hydrogen. And regarding hydrogen vehicles, they still have many moving parts.

Back in 2018, Hyundai saw the move to hydrogen-powered vehicles as a way to preserve many jobs in the automotive supply chain. Since a fuel cell engine closely resembles petrol engines, there wouldn't be many changes to the automotive supply chain if the industry moves towards producing hydrogen vehicles. Until refilling infrastructure ramps up, consumers are going to continue to remain hesitant in adopting a hydrogen-powered vehicle.

With everything, the debate on whether these big automakers should spin off their electric vehicle business segments is still difficult. The surge in interest rates and concerns over the supply of rare earth metals and other metals essential to electric vehicle production is making investors hesitant in investing in electric vehicle stocks. At the same time, these brands come with high notoriety, and with that, they'll have an easier time selling vehicles to consumers. They're not young brands like $RIVN and $LCID, who've been covered negatively by the press over their issues with production. At least with the Big Automakers, their relationships are more established, they hold more influence in the overall automotive supply chain, and the people working there have a lot more experience with the issues that the industry is currently dealing with compared to those working in the startups.

Me personally, I think that Ford's electric vehicle business is more established and thus, I think they should consider a spin off. As for GM, their electric vehicle business is less established as the company is currently transitioning away from producing the Bolt and ramping up production for the Hummer EV and the Cadillac Lyriq.
A look back at $GM's investments in electrified transportation
GM's most recent electrified transportation was in an electric boat startup named Pure Watercraft, a pontoon boat business.

In late 2020, GM invested in $RIDE. Later, they sold their stake at a loss.

Around the same time, GM had plans to invest in $NKLA, but that deal fell apart.

Considering that Polaris $PII is in the pontoon boat business, they're a competitor of Pure Watercraft. It's possible that Polaris could consider acquiring Pure Watercraft in the future.

Let's hope that General Motors's stake in electric boats goes well.
If the electric boat market held so much promise wouldn't Elon have already made more progress there or be talking about it more?

Also apparently there is a Tesla yacht...for $700M.

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$TSLA chose to cut corners in order to grow their deliveries amid a chip shortage. It will bite them in the future.
When watching a video by Cheddar on how Tesla navigated through the chip shortage, one thing that stood out was how $TSLA was willing to cut corners and deliver cars that weren't fully finished and at the same time, rewrote the code of the microchips they had to make their cars as functional as possible.

Meanwhile, $F $GM and other legacy automakers chose to not cut corners because
  1. they don't have a team of coders that can rewrite the code on the microchips and
  2. they weren't willing to deliver unfinished vehicles to customers

in the short term, Tesla has benefited significantly by being able to record high delivery numbers. But in the long run, it's going to lead to massive problems. By cutting a steering component, there's a concern about the safety of driving the car on the road. Tesla's engineers might think that the component isn't important. Only time will tell if it's truly important.
Actually there’s a paragraph on what $GM did in the cnbc article you’re referring to: “For example, in March 2021, General Motors said it was building some of its 2021 light-duty pickup trucks without a fuel management module, a move that hurt those trucks’ fuel economy. It blamed the chip shortage for the move.”
I’m surprised the NTSA or other country safety boards haven’t picked up on the $TSLA issue yet. But most mainstream press also push down harder on $TESLA than they do on legacy automakers…so I’m not surprised if the articles you link to are a written with a little exaggeration.
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