PUGOY - The Mustang EV Might Be Ford's Ultimate Multiple Decompressor
Compressed multiples in the auto industry seem like the new normal
The auto companies have been suffering from multiple compression.
(Source: Seeking Alpha)
Several factors might contribute to that phenomenon. We have macro scenarios like a possible recession and the trade war. Or, industry-related problems like the adoption of EVs and self-driving technology.
We might formulate a plausible hypothesis on this theme. The recession fears made investors react to the cyclical nature of the auto industry. Then, some macro indicators released during the last few weeks, coupled with the Phase One trade deal progress,