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Another reason to buy the dip on $UPST is the "auto lending" story
Recently, $UPST was named the fastest growing digital retail software for auto dealerships. This is good news as it shows that its expansion into the auto lending industry is going well.

With supply chain issues easing and more automakers finding that the slower demand in chips is helping them alleviate their chip shortage issues, we can see more auto sales in the coming months. Despite WTI Crude plunging from its highs, it's still well above its historic average. Consumers are still demanding electric vehicles and currently, many are still struggling to get their hands on one.

As companies like $RIVN and $PSNY reaffirm to investors that they can meet their high production targets, we will see more consumers taking out auto loans (despite the higher interest rates) to buy electric vehicles. If startups are seeing their chip issues resolving, I bet the larger automakers are experiencing something similar as well.

Assuming that many will be taking out loans at dealerships to buy electric vehicles from $GM and $F, Upstart's auto lending business can provide more growth for the overall business. Policymakers are going to capitalize on the improving conditions of the automotive supply chain to promote more buying of electric vehicles.

Upstart is a pick and shovel way of this unprecedented event in the auto industry as many will be switching from gas to electric and policymakers are doing their best to have more people buy electric vehicles ASAP. And since nearly all consumers can't pay for cars with cash, they're going to take out loans to finance these purchases, creating unprecedented demand for auto loans.

Hopefully, $UPST can offload more of its existing loans from its books so that it can have more cash to originate more loans. And hopefully, credit conditions improve so that debt buyers are willing to buy more loans from Upstart.


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