There is something wrong with the auto market and we haven’t seen anyone talk about it anywhere. What is that problem?
All the big auto manufacturers have announced the migration away from combustion engine vehicles to electric vehicles over the next decade or two. There is an expected spend of $500 billion in electric vehicle market. There is nothing wrong with that strategy however we have also seen the promise of drones and reindeer robots deliver goods to our homes and places of work and robotic taxis take us places.
There is an obvious question to be begged here: If robots and drones will take us where we want to go or bring goods to our homes, why do we need so many electric vehicles?
It would seem that electric vehicles won’t be a great fit for people that live in rural areas given the sparsity of charging points and the long distances encountered in rural settings to get from point to point. Furthermore, rural people tend to need larger vehicles like trucks and tractor for heavy lifting which would put additional motor and electric strain on electric vehicles.
If that weren’t bad enough, the future might be self-flying flying drones over electric land vehicles anyway.
It is certainly possible that a market can sustain one or two of these new ways of transportation but we are skeptical that all forms will be sustainable and supportable over the long term. We’d love to see the Jetson ONE succeed!
Until there is a clearer direction on where this market is heading, we will stick with alternative investments for now.