Tesla on the rise, Mercedes under pressure: This is an example of how much the balance of power in the auto industry has shifted. While Mercedes has lost its relevance, especially on the Chinese market, Tesla is considered a pioneer in electric cars despite company boss Elon Musk’s escapades. German manufacturers are almost hopelessly behind in this field: they started producing electric cars too late and the vehicles are too expensive in international comparison. The mood among investors has also changed. In the past, the established German manufacturers were allowed to get away with something, but today they are viewed extremely critically. Professionals call such securities “show me” shares – loosely translated: show what you can do first, otherwise we won’t invest. Tesla and Musk, on the other hand, are currently willingly accepting any vision of the future, no matter how optimistic. This also has its pitfalls, but in the end it just shows how much trust has changed sides: the German car manufacturers have unfortunately lost it. Investors will no longer be able to make a profit from their shares until further notice.
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