The ZeroSum Round Up is a collection of articles, reports, and other information that ZeroSum believes is useful to automotive dealers and others working in the industry.
This November, a lot has happened in the automotive industry, including new vehicle inventory reaching the its highest level since mid 2021. Here is some of the most important news from this month that auto dealers should read.
EV manufacturers continue to suffer from excessive production costs
Numerous EV startups are citing inflation and the global supply chain crisis as reasons for failing to meet delivery goals and facing huge losses in revenue.
Read the article: https://www.reuters.com/business/autos-transportation/electric-vehicle-makers-burning-cash-slammed-by-sky-high-costs-2022-11-14/
The global chip crisis is far from over
Kristin Dziczek of the Chicago Fed warns that chip shortages could persist through 2024, stating that"the auto sector will face continued price and allocation pressures due to chip demand from other industries."
Read the article: https://www.chicagofed.org/publications/chicago-fed-letter/2022/473?
New vehicle inventory reaches highest level since June 2021
According to data from ZeroSum, in October, new vehicle inventory reached its highest level since June 2021 as prices remained elevated, and it will likely continue to rise.
Read the report: https://www.zerosum.ai/market-first-report/new-vehicle-inventory-reaches-highest-level-since-june-2021
GM ramps up its American battery supply chain
GM plans to scale its EV production capabilities to rival Tesla in EV profitability.
Read the article: https://www.reuters.com/business/autos-transportation/gms-north-american-battery-supply-chain-is-key-ev-profits-2022-11-15/?
Carvana shares struggle again
Carvana stock has dropped 97% in 2022 as a result of poor economic conditions and the company's heavy debt load.
Read the article: https://www.autonews.com/used-cars/worries-mount-carvana-shares-plunge-97
A new bill could allow more EVs to qualify for tax credits
If the Affordable Electric Vehicles for America Act that has just been propsed in Congress is passed, more EVs would qualify for the $7,500 tax credit.
Read the article: https://electrek.co/2022/11/07/new-electric-vehicles-would-qualify-for-tax-credit-with-new-bill/?
For the latest automotive industry insights and trends, read the monthly ZeroSum Market First Report.