Why all these stocks are going all time low?
I see many asking the above questions and if they still don’t know, there has been many economical factors that is driving the EV market down…
issues like China economy, Chinese government putting on how new models for sale as the Chinese market is too saturated.. are driving down the EV market.. the most mature market for EV is definitely China and therefore when it has issues, the EV market definitely ain’t gonna be spared…
but still what is the biggest issue for EV manufacturers? thats interest rates and if the US Feds don’t cut the interest rates, price wars will continue… prices are too expensive comsumers leading to less demand… profit is lesser when price wars…
clearly we can see this from TSLA, they met their targets of delivery but profit margin is low for them… investors are seeing that the company is not profitable and less confidence with the stock.
same goes for BYD, they sold many cars but the overall profit is still below expectations… because of price wars…
we got to watch tonight on the direction of interest rates… the Feds are getting alot of pressure from many sides to push for a rate cut… not just from analyst but from Senators as well because the demand for housing is coming back but interest rates are iust too high for consumers to buy…
who knows that we might get a surprise that we get an immediate rate cut tomorrow… (just making a assumption, don’t take it seriously)… interest rates got to cut as the impact is spreading to more and more industry sectors… we know energy, automotive and housing are feeling the pain at the moment.. there will be more to come if the Feds dont do something soon…
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I ain’t any guru… i follow technicals and trend line of the market
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