RE:Steep discounts on trucks are coming!I should have stated that the vlogger's discussion about trucks starts at the 7 minute mark.
The dealer inventory in March of Ford F150's was 59 days. Today, the inventory has jumped to 84 days. However, Ford is channel stuffing so apparently the real number is over 100 days. That is a massive jump in a month. What is going to happen in the coming months?
Canada and the USA are not going to be faced with a China-style shutdown of ICE vehicles any time soon. Even if the EPA in the States gets its way, auto manufacturers will still be able to legally produce about 40% ICE vehicles. But will they? I doubt it.
The immediate problem facing legacy gas vehicle producers today is the massive drop in EV prices is rapidly making ICE vehicles obsolete. If there were more EV's available, the transition would accelerate even faster.
Elon says he isn't trying to hurt anyone in the auto industry with Tesla's massive price cutting this year as he is just trying to make vehicles more affordable. In reality, Tesla is crushing the industry before our eyes. I can't blame him as the industry ridiculed him for years. Biden refused to say Elon's or Tesla's names for a couple of years which is an incredible testament to the UAW padding the DEMS election funds for years. Biden is a hypocrit as Elon has basically created the EV movement that Biden and the DEMS are hanging their political hat on.
EV sales in Q1 jumped 45% YoY in the States. As EV adoption increases along the typical "S Curve" pattern, the cost to produce ICE vehicles is going to keep going up as volumes drop because fixed overheads get spread across fewer vehicles.
The recent Alberta environmental comments about SU's pending Fort Hills leases is just another sign of what's is already in motion but nobody here seems to want to believe it.
All of the above won't matter as much to CNQ and others that produce natural gas. SU on the otherhand is going to get clobbered. The fact that SU is continuing to proceed with its suicidal path of doubling down on producing and selling gasoline boggles the mind.
Those that count on the 5% yield on SU shares might want to consider other types of investments that provide capital appreciation potential instead of the capital suicide that SU is facing.