ICE vehicles are pricing themselves out of the marketThe guy is a wholesaler who does lots of videos. He goes around to dealer lots and looks at the inventory. This video is from a trip to a Jeep/Dodge dealership (Stellantis) but I have watched similar videos from him for Ford and GM.
The legacy auto makers are focusing almost entirely on truck production. They are loading up dealerships with higher end "expensive" trucks that very few people can afford. The legacy auto makers are targeting the luxury end of the market like they did during the days of supply chain shortages. As a result, the inventory at dealerships just sits and sits and sits. Eventually the auto makers have to hold huge blow out sales so that they can replace the existing inventory with new models. l
The days of US$50,000 average vehicle costs are DONE and the legacy business model is flushing fast. Despite the glowing numbers that Ford and GM and Stellantis reported for 2022, the actualy inventory is not sold to end customers and is still sitting on dealer lots.
If you are in the market for a new ICE vehicle, be patient. The steep 40% to 50% discount numbers that China is seeing for ICE vehicle sales may be Coming to America sooner than you think. The discounts won't start at 40% to 50% but they will happen.
In the meantime, 36 Kr reported yesterday that Tesla suppliers have been informed that they need to prepare to supply Tesla with parts for 4 million new smaller version Model Y's per year. Logic dictates that is the $25,000 Tesla model that we have been hearing about which will be produced in Mexico and probably Shanghai next year.
The choice of producing a smaller version of the Model Y makes sense as it is based upon a one piece chassis punched out by Tesla's (built by IDRA) 9 Tonne Gigs press. Elon has guided in the past that Tesla intended to basically make cars like Lego parts that can literally be clicked together. There is no place for the100 year old "line" system designed by Henry Ford as the math doesn't work anymore.
Don't shoot the messenger. I'm just reporting what I'm seeing. As an investor of SU that depends heavily on gasoline sales, just think about what is already taking place. What you do with the information is up to you.