The War For Vehicular Supremacy Rages On!

The global automotive industry is waging a war for the future of transportation…and investors have a chance to profit from all sides of the conflict! January 06, 2022 [Turn on your images.]( The War For Vehicular Supremacy Rages On! The global automotive industry is waging a war for the future of transportation…and investors have a chance to profit from all sides of the conflict! In Las Vegas, Sony made an explosive entrance into the Electric Vehicle War, posing a threat to other EV contenders like Tesla. But will Amazon’s backstab of a longtime ally be just the opening EV upstarts have been waiting for. Meanwhile, on the gas-powered front, an era of dominance has come to an end. General Motors, America’s biggest automaker, has been unseated by Toyota at long last…but can the Japanese company hold the throne forever? --------------------------------------------------------------- [Turn Your Images On] [What Happens In Vegas Doesn’t Stay In Vegas: Sony Unveils EV Prototype At CES Conference]( Ryan James A new contender in the great Electric Vehicle War has just emerged this week. Tesla is no longer the only show in town. Most of the big boys, including VW, Toyota, GM, Ford, BMW, and Nissan have already announced plans to grow their electric vehicle production, and now Sony has just announced they are entering the EV war. That’s right, the company that gave us PlayStations is now going to give us electric vehicles—and someday even autonomous vehicles if things go to plan. Sure, I played PlayStation as a kid, but I was always more partial to the original Nintendo console, playing games like Super Mario Brothers and Duck Hunt. [Turn Your Images On] [Turn Your Images On] But now I am really dating myself, so in the interest of pretending I am cool so the modern PlayStation 5 fans accept me, I’ll move on to more important content. Important content like the announcement that Sony made in Las Vegas at the CES technology conference. Because what happens in Vegas stays in Vegas…unless a large corporation like Sony announces they are making electric vehicles, in which case that information spreads quickly. [Turn Your Images On] Sony announced that they will create a company division focused on vehicle development named Sony Mobility Inc. At the CES technology conference, Sony showed off a protype seven-seat electric sport-utility vehicle with all-wheel drive. According to the Wall Street Journal, “Sony first displayed an EV sedan at CES two years ago, but it said at the time it didn’t necessarily plan to sell a Sony car. The initial prototype served to show off Sony’s image sensors, which can be a key part of autonomous driving systems. The new Las Vegas announcement suggested Sony does plan to sell vehicles under its own brand rather than merely supplying its technology to other carmakers. The company said it would establish a company called Sony Mobility Inc. in the spring. Sony said 40 sensors were installed in its prototype. It said it eventually aimed to offer what is known as level four autonomous driving, in which the car can drive itself without human involvement under certain conditions.” For those curious, our Money and Markets Green Zone rating is “strong bullish” on shares of Sony, which means we recommend buying shares of the mega-corporation, and we predict it will outperform the market 3x over the next 12-months. [Turn Your Images On] [(Click here to view larger image.)]( In 2020, EVS made up about 5% of new car sales globally. In Europe, which has been more aggressively pushing electric vehicles, the number is 10%. And in Norway new EV sales account for more than 70% of new car sales. By 2030, EVs are expected to make up 26% of all car sales globally. By 2040, Morgan Stanley projects that it will be closer to 72%. So, currently, Tesla has the most market share, but VW, BMW, Nissan, and others are quickly making up ground. Will Sony be the next company to give Elon Musk a run for his dodge coin? Time will tell. --------------------------------------------------------------- [Turn Your Images On] [Toyota Ousts GM As America’s #1 Car Dealer]( Shawn Ambrosino Have you ever read a headline that carries so much weight that it feels like you’re getting punched in the chest? While it’s a rare occurrence, I’ve had it happen a few times. The first I can remember was when I read that David Lee Roth was leaving Van Halen. That one was rough. Why, David, why?!? [Turn Your Images On] Another one I can remember was when Lou Holtz stepped down as the head coach of Notre Dame’s football team. That one stung WAY more than Diamond Dave’s departure as Van Halen’s front-man. Way more. However, I’ve been lucky over the past decade or so, which has largely been devoid of headlines that shook me to my core…until today. What was the headline? From Reuters: “Toyota dethrones GM as U.S. sales leader after nearly a century on top.” [Turn Your Images On] An American Company, An American Family Why does this hurt so bad? Well, it’s not because I drive a Chevy. It’s not because I have some kind of undying devotion to this car company. In fact, I find loyalty to any brand to be a little weird. After all, when you’re paying these people for their products, subsequently pushing these products on social media for FREE borders on indentured servitude. No, this one stung because my grandfather and father both worked for General Motors. They worked at Harrison’s in Western New York in the radiator division, and they both retired from there after decades of service. Both were die-hard Chevy men, and I ate many a meal and opened many a present because of the living this company afforded my family. So, while I’m not “loyal” to General Motors, I am grateful that the company gave my family a comfortable life. When I read the headline that GM was losing its position as America’s top automaker, it hit me like a ton of bricks. Both my father and my grandfather have passed on, but I know that this news would have wounded them deeply if either was still with us. In a time when car-makers have been having a hard time getting the parts they need—especially computer chips made from quality semiconductors—Toyota did a better job rationing its supply. As such, it put them in the front of the pack for the first time ever, ending GM’s almost century-long reign at the top for sales. Of course, while both companies had as good a year as could be expected when dealing with COVID and supply chain issues, when it comes down to it, Toyota (TM) is just a better prospect for investors at the moment than General Motors (GM). This isn’t just my opinion, either. There is quantifiable data behind this. Sorry, dad and grandpa… Why Toyota Is Winning While both stocks did well this week coming off their Q4 reports, Toyota just seems to be a sweeter deal when it comes to making money from their stock…and I’ll show you why. When you look at the Green Zone Fortunes ratings of both these companies, the difference is readily evident. [General Motors]( is lacking in two important areas: size and growth. I’m not too concerned about the size—you can’t help that GM is a huge company worth billions—but the fact that there isn’t much room for growth is troublesome, even for the most optimistic of investors. Here, see for yourself: [Turn Your Images On] [(Click here to view larger image.)]( The proof is in the pudding, right? However, [Toyota]( has a LOT more going for it. It’s got bigger potential for growth…but more importantly, it’s got volatility on its side. See? [Turn Your Images On] [(Click here to view larger image.)]( When you compare the two, you realize that there really is no comparison. It’s clear why Toyota has taken the throne away from the one-time king of cars, General Motors. Can GM take this spot back? Maybe… We’ll have to see what happens with China and the supply chain crisis. A lot of what happens with General Motors will bank heavily on getting the parts that they need. What I can tell you is that MY family is pulling for them to be back at the top. We know it would make our Chevy-loving patriarchs proud. Congratulations to Toyota… Here’s hoping your reign is short but sweet! --------------------------------------------------------------- [Turn Your Images On] [“Et Tu, Bezos?” Amazon Backstabs Rivian In The EV War]( Shawn Ambrosino Ain’t no such thing as loyalty in business. Oh, we’d like to think that there is, that people will act with honor and integrity—but the simple fact is that honor and integrity often take a back seat to profit and market share. Ask anybody who’s ever owned a business, and they’ll tell you that loyalty means nothing when it comes to making money. Nothing. [Turn Your Images On] This isn’t conjecture. I’ve owned a few businesses in my time and learned this lesson the hard way. In fact, a lack of loyalty is one of the biggest reasons I closed one of my previous businesses. People will tell you one thing and then do the complete opposite without warning or often even an apology. This isn’t me having a pity party or going all sour grapes. It’s just facts. It’s hard trying to operate with integrity, honor, and ethics when the rest of the people around you aren’t acting the same way. It leaves you with one of two options: either change the way you operate…or get out of the business. I chose the latter. Rivian Gets Stabbed In The Back However, the lessons I learned allow me to be empathetic to others that have found themselves in the same predicament. That means I know how the management of Rivian Automotive (RIVN), a new EV maker, must feel right now. It was just revealed that Amazon, a 20% stakeholder in the company, has decided to buy a fleet of vans from Rivian’s competitor, Stellantis NV. Talk about a proverbial knife to the back. Rivian woke up to the news on Wednesday that Jeff Bezos and company have decided to get their EVs from another supplier, even though it was agreed upon that Rivian would be supplying the retail giant with its vans. Of course, Stellantis put out a statement as soon as they could, telling the world that the vehicles of this first order will arrive next year. CEO Carlos Tavares didn’t reveal how many EVs were a part of the deal, but he did say that the order was a “significant number” –though that’s a very relative term. Regardless of how many vans are involved, this order has hurt Rivian, a company that has been viewed as a front-runner in the new corps of EV startups that have popped up in the wake of Tesla’s (TSLA) monumental success. That front-runner status was heavily influenced by the backing of Amazon and the $1.65 trillion at their disposal. Back in 2019, Bezos and company ordered 100,000 vans from Rivian, and Amazon is waiting for the first 10K EVs by the end of 2022…but another rooster in the hen house isn’t making Rivian look good. The company went into full spin mode on Wednesday, saying that its deal with Amazon remains “intact, thriving and growing,” and even called the Stellantis deal “beneficial for the industry.” But it wasn’t enough. The damage had been done. Investors Are Paying The Price And even though Amazon echoed those same sentiments by saying, “We continue to be excited about our relationship with Rivian, and this doesn’t change anything about our investment, collaboration, or order size and timing,” Rivian’s stock still tanked on the news. Which, if you’ve been following the stock since its debut in early November, isn’t good, as the company has really only lost value since then. At one point, the company hit a $100 billion valuation, but right now they’re sitting at about $69 billion and sliding. That’s $31 billion in value that has been erased. Can Rivian recover from this? That remains to be seen… But I’ve got to tell you, it’s definitely NOT a good look. If you want a snapshot of how bleak the outlook is for Rivian, look no further than the Green Zone Fortunes rating on the company. It doesn’t really get any lower than this: [Turn Your Images On] [(Click here to view larger image.)]( Of course, I do love an underdog. So, while things aren’t looking too good for Rivian at the moment, I’m hoping they can pull themselves out of the hole they’re in and become a true comeback story. Hopefully, this is a lesson from which this company can learn and grow. There are no “friends” in business…even when they’re a “partner.” --------------------------------------------------------------- For more quality content like this, and to learn more about the Money Moves team, visit us at [( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. 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