With Future Murky, Auto Investors Focus on Change Now

Hopes of structural change are driving auto stocks, not financial results

The auto industry is enjoying the benefits of a healthy global economy and increasing demand for lucrative SUVs, a stream of first-quarter results confirmed last week. But investors don’t appear too interested in the broad macro trends that typically have driven these stocks.

Instead, they are looking into a vaguely threatening future of driverless electric cars on the one hand and at companies’ capacity to boost their valuations by shedding assets and costs on the other.

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