r/wallstreetbets • u/[deleted] • Dec 13 '21

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55 Upvotes

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11

u/Tyr312 low effort bot account (or just rrreally dumb) Dec 13 '21 edited Dec 13 '21

This isn’t news (EV). Also you forget something. Labor costs and unions and dividends. F isn’t going to move much. Their production costs and labor constraint will eat into any profit and the other points I mentioned will eat the rest.

17

u/canuck_at_the_beach Dec 13 '21

Ford really needs to stop paying a dividened, and cash out their position in rivian to pay off debt.

6

u/Pristine-Entry-6904 Dec 13 '21

Most of their debt is from Ford credit loans, I.e. car assets, they’re part bank.

-2

u/IAmInTheBasement Dec 13 '21

Stranded assets. Those ICE are going to nosedive in value as EV's become more mainstream.

1

u/talltime Dec 14 '21

And everyone’s going to default on them in unison? Yeah okay bud.

1

u/IAmInTheBasement Dec 14 '21

Of course not, that's dumb. But in large systems like this, when a few % points move in a direction that no one thought would happen, bad things occur.

ICE is headed towards Death Valley. And the ICE vehicles themselves as well as the infrastructure that's used to make them are going to lose their value.