More Are Talking About The End Of Legacy Automotive
This is something that followers of Tesla and EVs has said for years. The idea of legacy auto surviving looks very challenging.
In this video I discuss how more people, even thought outside this circle are starting to talk about this.
▶️ 3Speak
0
0
0.000
Summary:
In this video, there is a discussion on the future of legacy auto companies in light of the increasing prominence of electric vehicles (EVs). The recent UAW strikes against major auto companies have brought attention to the long-term viability of legacy auto companies compared to EV manufacturers like Tesla and Chinese companies. The video argues that EV manufacturers like Tesla operate without unions, pay lower wages but offer significant compensation through stock options, leading to questions about the sustainability of legacy auto companies. Additionally, with companies like Volkswagen slowing down EV production due to financial losses, the narrative suggests that legacy auto companies may be struggling to compete with EV manufacturers, further raising concerns about their future in the market.
Detailed Article:
The video opens with a discussion on the growing concerns about the future of legacy auto companies amidst the rise of electric vehicles (EVs). The recent UAW strikes against Ford, General Motors, and Stellantis in the United States have sparked questions regarding the long-term viability of these traditional auto manufacturers. The speaker notes that while advocates of EVs and Tesla have long maintained that legacy auto is doomed, these assertions are now gaining traction beyond just Tesla followers.
One key point of debate is the operational differences between EV manufacturers like Tesla and legacy auto companies. The video highlights that companies like Tesla and Chinese EV manufacturers operate without unions, which allows them to offer lower wages but compensate employees through stock options and other benefits. This has led to discussions about the overall compensation and wealth implications for employees in these respective sectors.
The speaker draws parallels to historical examples such as Microsoft in the mid-1990s, where stock options made employees millionaires, emphasizing that stock options do not directly impact the cost of goods sold. This distinction becomes crucial when comparing the cost structure of legacy auto companies with EV manufacturers.
The video also touches upon the financial performance of EVs, pointing out that while Tesla and BYD are potentially selling EVs at a profit, legacy auto companies like Ford, Volkswagen, GM, and others may be selling EVs at a loss. The mention of Volkswagen slowing down EV production due to financial losses adds weight to the argument that legacy auto companies are facing significant challenges in the EV market.
Overall, the discussion leads to the assertion that legacy auto companies may be in decline and could face dire consequences if they fail to adapt to the EV market shift. Drawing parallels to once-prominent companies like Sears and Nokia that failed to pivot with changing technologies, the video suggests that by the time it becomes evident that legacy auto companies are in decline, it may be too late for them to recover.
In conclusion, the video highlights the evolving landscape of the automotive industry, where the growing dominance of EVs and the challenges faced by legacy auto companies raise concerns about their future survival in a market increasingly driven by electric vehicle technology. The speaker's analysis underscores the need for legacy auto companies to adapt and innovate to stay relevant in an industry undergoing a significant transformation.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.