QOTD: Does The Market Not Trust EVs?
One of my VerticalScope colleagues pointed out to me that Polestar's stock has taken a dive. This is a bit odd if you believe that Polestar is one of the EV companies that is having some success as EVs move more and more into the mainstream, as some believe.
So the question is, why would Polestar's stock slide? Of course, there are many factors -- it's not necessarily because the company sells EVs.
But I have to wonder -- does the market not trust EVs? Or maybe the market just doesn't trust smaller car companies? Or something else?
What say you, B and B?
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HotRod on Oct 26, 2022
It's not a Polestar thing, it's an EV thing. The volume needed to reach profitability is so high there is simply no way all EV makers can be profitable without charging a significant premium. And charging a significant premium is a great way to remain low volume.
Investors are realizing more dedicated EV brands will fail as they pump billions into products that may or may not be competitive with Tesla. Frankly, I wouldn't be surprised if some Legacy brands collapse in the push to match Tesla profitability as well -- a push that seems impossible as long as dealers are getting a cut. I'm not necessarily predicting a large-scale industry-wide culling, but I'm also not about to deny one is possible.
Jimbo1126 on Oct 27, 2022
I know Polestar doesn't have much brand awareness, but I've been watching it since the first coupe came out. Their issue is their branding. It's cold and aloof, and the collateral looks more like an annual report than a decision support piece. Very un-China but polarizing in its Euro-cool design.
Tassos 3 days ago
The consumers (not the "market") DO trust EVs, but those that are superior and well-priced,
THey buy millions of TESLAS and very few copies of all the other dozens and dozens of LEGACY BEVs.
Makes sense to me. None of these experienced makers have YET succeeded to design and build a better Tesla, that is ALSO PRICED COMPETITIVELY.