Nice trend spotting! With my last 5 years with a Tesla(two now), I feel that your point on having better quality build, easy software upgrades, and more reliability on car-sharing and ride hailing platforms, those who DO have cars are using them longer anyways. But where is the long-term trend going? Can the 3 auto parts companies pivot to sustainably maintain their growth rates beyond 2025?
Hey Sachiv, yes I believe so. My views center around socioeconomic trends. While there is a general shift from ICE to EVs, much of the population is still priced out from making this change so the used car market will still be thriving as long as there are people who can't afford new ICE/EVs. In time, however, as the shift becomes more EVs than ICE, economies of scale can drive down costs making EVs more affordable for the masses but I do not see this happening for many decades. This is why there is a pretty moderate long-tail for those that still need/want the pricing of an ICE.
Nice trend spotting! With my last 5 years with a Tesla(two now), I feel that your point on having better quality build, easy software upgrades, and more reliability on car-sharing and ride hailing platforms, those who DO have cars are using them longer anyways. But where is the long-term trend going? Can the 3 auto parts companies pivot to sustainably maintain their growth rates beyond 2025?
Hey Sachiv, yes I believe so. My views center around socioeconomic trends. While there is a general shift from ICE to EVs, much of the population is still priced out from making this change so the used car market will still be thriving as long as there are people who can't afford new ICE/EVs. In time, however, as the shift becomes more EVs than ICE, economies of scale can drive down costs making EVs more affordable for the masses but I do not see this happening for many decades. This is why there is a pretty moderate long-tail for those that still need/want the pricing of an ICE.