Excessive enthusiasm and missed targets have consequences
- Car makers like Ford, GM, and Tesla have violated the Wall Street rule of underpromising and overdelivering
- Excessively enthusiastic forecasts about battery-electric vehicles have hurt their stock prices
- BEV sales are up 50% year over year, but companies have delayed spending and cut prices
- Ford planned to sell 600,000 EVs a year by 2023, but its best monthly total for U.S. EV sales was 8,958
- GM planned to build 400,000 EVs from 2022 to 2024, but has only sold about 100,000 so far
- Tesla’s Cybertruck was supposed to be delivered in 2021 starting at under $40,000, but was delayed and priced at $60,000
- Investors are to blame for being too optimistic about EV growth
- Stock prices have dropped, but expectations are now closer to reality
Car makers like Ford, General Motors, and Tesla have violated the Wall Street rule of underpromising and overdelivering, leading to significant drops in their stock prices. These companies have made excessively enthusiastic forecasts about battery-electric vehicles (BEVs), causing confusion for investors. While BEV sales are up 50% year over year, Ford and GM have delayed spending and cut prices, and suppliers have issued disappointing financial forecasts. Ford planned to sell 600,000 EVs a year by 2023, but its best monthly total for U.S. EV sales was only 8,958. GM planned to build 400,000 EVs from 2022 to 2024, but has only sold about 100,000 so far. Tesla’s Cybertruck was delayed and priced higher than expected. Investors are partly to blame for being too optimistic about EV growth. Although stock prices have dropped, expectations are now closer to reality, which may lead to steadier gains in the future.
Factuality Level: 7
Factuality Justification: The article provides a balanced view of the situation, presenting both positive and negative aspects of car companies’ forecasts about battery-electric vehicles. It includes specific examples of companies like Ford, General Motors, and Tesla, and their actions that have affected their stock prices. The article also mentions the growth of BEV sales and the challenges faced by car companies in meeting their production and sales targets. Overall, the article provides factual information and analysis without any obvious bias or misleading information.
Noise Level: 4
Noise Justification: The article provides some analysis of the overpromising and underdelivering behavior of car makers in the electric vehicle industry. It mentions both positive and negative aspects of the industry, such as the growth in BEV sales and the delays in spending and disappointing financial forecasts. However, the article lacks in-depth analysis and evidence to support its claims. It also does not provide actionable insights or solutions for investors. Overall, the article contains some relevant information but lacks depth and rigor.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the impact of car companies’ excessively enthusiastic forecasts about battery-electric vehicles on their stock prices.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article focuses on the financial impact of car companies’ forecasts and their effect on stock prices, without mentioning any extreme events.
Public Companies: Ford Motor (F), General Motors (GM), Tesla (TSLA)
Key People:
Reported publicly:
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