The Big (Auto) Short: The end of the combustion engine
Who will fall victim to the unprecedented changes in the automotive and transportation industries? There are several disruptions coming to a head—seemingly at the same time— from the transition to electric vehicles, to shared mobility, to online vehicle purchasing.
Auto dealers, manufacturers, parts suppliers, and subprime lenders face a tough road ahead, in our view. Some may already be structurally obsolete and unable to pivot given the capital intensity of their businesses—which is why we’re taking strategic short positions.
The transportation industry is one of the planet’s most extreme polluters. Innovation is driving a shift to renewable energies and electric transportation at an accelerating rate. We believe this will cause unprecedented cascading effects throughout the auto industry.
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