Lets imagine a scenario: You are a car manufacturer, you have to choose how you allocate resources. Most of your income comes from ICE vehicles, and only some

Lets imagine a scenario: You are a car manufacturer, you have to choose how you allocate resources. Most of your income comes from ICE vehicles, and only some from EV. So you give most RD resources to ICE because it makes most money, good business sense. Some years pass, and the market of EV’s grow. But you still make most of your profits from ICE, so you only grow EV resources a bit. More years pass. Now the market flips, 60% EV, 40% ICE. So: - ICE is making a loss, because there is not enough demand - EV is making a loss, because you did not invest enough, and cant keep up with competitors which went all in. -> You cant invest more to EV, because you don't have the money, and if you could, you would still be years behind. So you're toast.