The car industry went through an inflection point going on 10 years now.
Ford and GM got on board with the changes but changes to a big high momentum corp like that came at a cost. So they have a market cap around $40 billion. Stellantis decided against existing and are dinosaurs.
Tesla obviously is the disruptor whose marketcap is >500 billion for sure, probably more legitimately around a trillion. Tesla could issue some new stock and effectively buy both ford and gm.
So obviously the car industry is having its pain points.
'afford' is the other side of this equation. Lets compare the USA and Canada.
GDP per capita
USA: 62,000
Canada: 44,000
That's practically a 50% difference... That's crazy.
Households Debt to GDP
USA: 70%
Canada: 170%
That's a huge difference. Greater then 50%.
Interest rates are about the same. 5.5% vs 5%. But arguably sky high given we're in a boomer retirement phase and we ought to be negative interest rates.
Private Debt to GDP
USA: 215%
Canada: 270%
North Americans cant afford ANYTHING. Not just their cars. Canada's debt to income is 180%. The soft limit of 100% matters a ton. North America is broke...
Comments
The car industry went through an inflection point going on 10 years now.
Ford and GM got on board with the changes but changes to a big high momentum corp like that came at a cost. So they have a market cap around $40 billion. Stellantis decided against existing and are dinosaurs.
Tesla obviously is the disruptor whose marketcap is >500 billion for sure, probably more legitimately around a trillion. Tesla could issue some new stock and effectively buy both ford and gm.
So obviously the car industry is having its pain points.
'afford' is the other side of this equation. Lets compare the USA and Canada.
GDP per capita
USA: 62,000
Canada: 44,000
That's practically a 50% difference... That's crazy.
Households Debt to GDP
USA: 70%
Canada: 170%
That's a huge difference. Greater then 50%.
Interest rates are about the same. 5.5% vs 5%. But arguably sky high given we're in a boomer retirement phase and we ought to be negative interest rates.
Private Debt to GDP
USA: 215%
Canada: 270%
North Americans cant afford ANYTHING. Not just their cars. Canada's debt to income is 180%. The soft limit of 100% matters a ton. North America is broke...