4 ms·

Sure, but why only look at one half of the equation? Why is the rest of the industry so low? GM has a P/E ration of less than 6. Are they distressed? If not, i

by _ea1k 3y ago

Sure, but why only look at one half of the equation? Why is the rest of the industry so low? GM has a P/E ration of less than 6. Are they distressed? If not, isn't that absurdly cheap?

frumper 3y ago
The only people I know wanting a Chevy already own chevys. Of course, most of the people that I know that own chevys would be happy with something else too.
martindbp 3y ago
The car market is switching quickly to EVs, GM has not shown that they can produce them, they recently discontinued their Chevy Bolt. They keep promising wonders in 3-5 years, but the years are ticking by. You don't want to be stuck trying to sell ICE cars in 10 years... Their only bright spot is Cruise, which has a shot at making a lot of money. Right now they're burning billions though, which means that at any sight of trouble, GM might cut their losses there, or try to sell it.
goodbyesf 3y ago
> GM has a P/E ration of less than 6. Are they distressed? If not, isn't that absurdly cheap? Reminds me of amazon vs everyone or nflx vs blockbuster. The 'market' seems to think tsla is just going to keep growing and gobble up much of the auto market share. Both amazon and nflx had absurd PEs for a long time. Eventually their grew into it. 6 P/E looks enticing as long as you think the 'E' is going to maintain itself over the long term. Do you think GM is going to maintain their earnings?
- _ea1k 3y ago
  Exactly! TBH, I made a few bucks on F back when their PE was similarly low. Their EV strategy made sense and their current product line was in demand too. It seemed like an easy and relatively safe bet, and it worked out. GM is a more difficult case. Their current efforts around Ultium haven't gone so well so far, and their ICE product line isn't even that much better. I think they will do well, but they have a lot of work to do.

4 ms·

Sure, but why only look at one half of the equation? Why is the rest of the industry so low? GM has a P/E ration of less than 6. Are they distressed? If not, i

by _ea1k 3y ago

Sure, but why only look at one half of the equation? Why is the rest of the industry so low? GM has a P/E ration of less than 6. Are they distressed? If not, isn't that absurdly cheap?

frumper 3y ago
The only people I know wanting a Chevy already own chevys. Of course, most of the people that I know that own chevys would be happy with something else too.
martindbp 3y ago
The car market is switching quickly to EVs, GM has not shown that they can produce them, they recently discontinued their Chevy Bolt. They keep promising wonders in 3-5 years, but the years are ticking by. You don't want to be stuck trying to sell ICE cars in 10 years... Their only bright spot is Cruise, which has a shot at making a lot of money. Right now they're burning billions though, which means that at any sight of trouble, GM might cut their losses there, or try to sell it.
goodbyesf 3y ago
> GM has a P/E ration of less than 6. Are they distressed? If not, isn't that absurdly cheap? Reminds me of amazon vs everyone or nflx vs blockbuster. The 'market' seems to think tsla is just going to keep growing and gobble up much of the auto market share. Both amazon and nflx had absurd PEs for a long time. Eventually their grew into it. 6 P/E looks enticing as long as you think the 'E' is going to maintain itself over the long term. Do you think GM is going to maintain their earnings?
- _ea1k 3y ago
  Exactly! TBH, I made a few bucks on F back when their PE was similarly low. Their EV strategy made sense and their current product line was in demand too. It seemed like an easy and relatively safe bet, and it worked out. GM is a more difficult case. Their current efforts around Ultium haven't gone so well so far, and their ICE product line isn't even that much better. I think they will do well, but they have a lot of work to do.