Introduction
These analyses are by Bloomberg Intelligence senior analyst Kevin P Tynan.
A delay in the progress of electric-vehicle profitability and autonomous-driving capabilities is clouding the path to higher valuations for the peer group, given the region's late-cycle volume status and the perception that new technology will drive structural change in the industry. As automakers get conservative with spending to prepare for the next demand trough, projects with long payback periods will be the first to be cut or delayed. Most manufacturers will continue to invest in electrified vehicles, though the sense of urgency has abated given Tesla's demand drop and chronic unprofitability.
The science and timeline of full self-driving vehicles remains uncertain, putting that pursuit most at risk as automakers narrow their focus to profit-generating vehicles and technologies.
