Shiver Me Timbers! Is General Motors Headed for Davy Jones' Locker?!

A Pirate's Eye on the Horizon

Savvy? Captain Jack Sparrow here reporting live from… well wherever the wind takes me! Today's tale is a grim one even for a pirate who's seen his share of kraken attacks and cursed gold. Seems General Motors that be the company that makes those horseless carriages is facing a bit of a squall. Deutsche Bank a fine bunch of landlubbers with a nose for treasure (or the lack thereof) have downgraded GM faster than you can say 'Why is the rum always gone?'

The Curse of the Tariff!

Edison Yu a name that strikes fear into the hearts of… well GM executives has lowered his price target to $43. A mere 1% below Friday's close but don't let that fool ya! These blasted tariffs cursed be the name are causing more trouble than a mutiny on the Black Pearl. Yu reckons these tariffs are here to stay like barnacles on a ship's hull and will lead to 'structural challenges.' Structural he says! Sounds like a ship about to break in two if you ask me.

Onshoring? More Like 'Oh No ing!'

The analyst fella is saying if GM tries to bring production back to the good ol' US of A it'll be costly. Lower profits higher spending… it's enough to make a pirate weep into his grog! And don't even get me started on automation and robots. Apparently using fancy metal men to build cars is frowned upon by the UAW (that's some sort of union I presume) and the politicians. Seems like everyone wants a piece of the pie except the pie's gettin' smaller savvy?

Commodities Be Plundered!

Argh and here's another thing! Steel and aluminum the very bones of these metal beasts are subject to a whopping 25% tariff! Steel prices are up up UP! GM's got some contracts but a third of their supply is based on 'spot buys,' whatever those are. Sounds like a gamble and a pirate knows a thing or two about gamblin' but this ain't a game of Liar's Dice matey!

Tesla: The Electric Kraken?

But fear not there's always a silver lining even in the darkest storms! While GM's ship is taking on water Tesla those merchants of lightning powered carriages are apparently smooth sailing. Yu is sticking to his 'buy' rating with a price target of $345 per share! That's a 37% jump from here says he! Could Tesla be the future? Maybe they've found the secret to eternal life or at least eternal batteries!

The Moral of the Story Savvy?

So there you have it me hearties! General Motors is facing headwinds stronger than a hurricane in Tortuga. Tariffs labor disputes rising costs… it's a recipe for disaster! But Tesla well they seem to be riding the wave like a kraken on a caffeine buzz. As for me Captain Jack Sparrow I'll stick to rum treasure and avoiding responsibilities. Why fight when you can negotiate? Now if you'll excuse me I believe there's a bottle of rum with my name on it… and if you were waiting for the opportune moment that was it.