As a keen supporter of electrification of vehicles
and more widely the battery storage of green energy
and so by definition a keen supporter of PLS production
it is disturbing to see these setbacks reported by an analyst :-
STOCK WEAKNESS
BOOM has been warning readers about the dramatic weakness in alternative energy stocks since 10thSeptember 2023 in the Editorial “ALTERNATIVE ENERGY -- HYPE HOPE OR GLORY? -- COMMERCIALLY VIABLE OR NOT?
BOOM has also previously warned readers specifically about weakness in electric car stocks in the editorial from 11th November 2023.
https://boomfinanceandeconomics.substack.com/p/boom-finance-and-economics-11th-november
Again, if readers wish, they can read those articles in the BOOM archives at Substack.
VOLKSWAGEN MOVES BACK FROM ELECTRIC CARS – EV DEMAND COLLAPSING IN EUROPE
In the 11thNovember editorial last year, BOOM wrote --
The modern electric car industry is now (again) plagued by significant uncertainties. Here are just a few that spring to mind -- insufficient recharging stations, range anxiety, increasing insurance costs, uncertain battery life, battery replacement costs, battery weight, increased tyre wear, high initial purchase prices, uncertain resale prices, inadequate model choice, mineral consumption, electromagnetic field radiation from the batteries (EMF) and its long term health consequences and, last but not least, the base energy source used to provide the electricity to charge the batteries (e.g. coal, gas, oil, nuclear, solar, wind etc).
Last week, on 10thApril, the Telegraph in London had a lead article titled“Volkswagen electric car sales plunge as Europe returns to petrol -- Demand for EVs falls by 24pc amid high energy prices and rollback of subsidies”.
“Sales of Volkswagen electric cars have plunged by almost a quarter in Europe as demand for battery-powered vehicles stalls and buyers return to petrol.
Electric vehicle (EV) sales fell by 24pc in the first three months of the year as high inflation and rising energy prices dampened demand.”
“Volkswagen had been impacted by the axing of subsidies for EV sales in Germany. The EU has also frozen emissions targets for vehicle fleets, stunting sales.”
“Mercedes-Benz on Wednesday also reported an 8pc drop in EV sales, blaming the abrupt end of a tax incentive in Germany”.
The Chinese company, BYD, is being touted as the “Tesla Killer”. Sales figures displayed suggest this may well be the case. BYD global sales numbers have recently begun to exceed those of Tesla. However, BYD’s shares are currently in the same pattern of downtrend over the last 2 years of trading.
BYD SHARES OVER 5 YEARS
In economics (and finance), things work until they don’t. Do your own research. Make your own conclusions. BOOM does not offer investment advice.
I look forward to responses by loyal and informed PLS supporters
Recherche
(20min delay)