Short comment
GM CEO Merry Barra said that the company needs a few years to make profits from the EV business. It is not a surprise considering need of more investment for manufacturing EV. It is one of the reasons why we should not buy the automobile sector for a while. The situation of expenditure is not different for other companies, even for Tesla.
Tesla recorded the profits for consecutive two quarters, which every investor had waited for. However, its rally stopped already and the shareprice couldn't go beyond its highest point which was recorded year before last.
The EV needs huge investment over a few coming years, and the players can't avoid the investment because the trend already dominated the industry. With slowing economy in China and Europe, the investment is eating the industry's fundamental. I still believe that the volatility should be in stock market. The sector could be first victim of its attack.
GM CEO Merry Barra said that the company needs a few years to make profits from the EV business. It is not a surprise considering need of more investment for manufacturing EV. It is one of the reasons why we should not buy the automobile sector for a while. The situation of expenditure is not different for other companies, even for Tesla.
Tesla recorded the profits for consecutive two quarters, which every investor had waited for. However, its rally stopped already and the shareprice couldn't go beyond its highest point which was recorded year before last.
The EV needs huge investment over a few coming years, and the players can't avoid the investment because the trend already dominated the industry. With slowing economy in China and Europe, the investment is eating the industry's fundamental. I still believe that the volatility should be in stock market. The sector could be first victim of its attack.
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