There are fund managers who no longer give shares of German automobile manufacturers any space in their portfolios. Equipped with enviable engineering skills, German manufacturers dominated the sector for a long time. But it took a thought leader like Tesla boss Elon Musk to tackle the electrification of the industry sustainably and seriously. Although progress has now been made, it turns out that, despite all the EU decisions, the sale of combustion engines is still pretty good business in many countries. Another insight gained: demand for German cars is falling significantly in China. Of course, China is not the only market, but it is a huge and success-critical sales market for German manufacturers. All of this is a mixed bag that currently offers little positive price fantasy for investors. Therefore, the current weakness in the German automotive sector is painful evidence of one of the most important stock market rules: diversify investments widely.
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