Car Industry headed for a shakeup (Patreon)

The car industry is heading for a major shake-up. As electric vehicles (EVs) replace gas-powered cars, many old automakers will go bankrupt within five years. I wrote about this before but sharing it again. A friend just bought a Polestar as he hates Elon so I decided to dig into it.

Polestar net loss is higher than revenue and debt is exploding. There is no way they can scale and get out of this hole unless chinese govt bail them out... they are now 60% chinese owned about 18% Volvo. I dont see China bailing a part EU firm out.

In addition, production of internal combustion engine (ICE) cars is expected to drop by more than half by 2029, which will destroy ICE profits for companies still focused on gas vehicles.

Several brands are already in deep trouble — Chrysler, Jaguar, Mitsubishi, Infiniti, Lucid, Maserati, Genesis and Alfa Romeo — all suffering from collapsing sales and weak EV plans. Even newer EV makers like Polestar are losing huge amounts across the board - nobody is making any money except for Tesla who are pivoting to autonomy.

TLDR

Many car brands could disappear soon — leaving customers stuck with cars from companies that no longer exist which means they will be hard to service and get a warranty on.