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Shift technologies investors8/8/2023 We already see this in present trends, with car ownership levels in the US continuing to decline. These types of "stealth taxes" add to the real cost of the vehicle for purchasers, which ultimately will put downward pressure on second-hand car sales also. If carbon taxes and the like gain traction in forthcoming years, this will adversely impact the cost of Shift's "value vehicles" going forward. Elevated Risks RemainĬlimate change advocates less fossil fuel being burned over time. ![]() However, there are some trends out of Shift's control that investors should be aware of. Shift aims now to turn over profits much faster, which will facilitate accelerated investment back into the business. Although shares have now crossed above their 5-day moving average due to strong recent momentum, we would need to see this average cross above its 20-day counterpart before we could entertain any possibility of an initiation of a new bull run in Shift.Į-commerce growth is a fundamental tailwind for Shift as more and more customers look for hassle-free avenues when buying products online. In fact, on that note, management is convinced that the company's shift to value offerings will bring more buyers into its wheelhouse but this remains to be seen over time.įrom a technical perspective, shares still have it all to do. In fact, the high-definition website photos, the comprehensive 150-check system, the 7-day money-back guarantee as well as the culling of the previous test-drive option should all help streamline sales as long as prices remain competitive on the front end. The approved CarLotz merger has been well-priced in at this stage, so it will be interesting to see how many synergies can come off the deal. Costs have been cut right across the board, with far more focus now on streamlining sales as much as possible. With scale (at least in the short term) having been sacrificed for better profitability, it will be interesting to see whether Shift's current plan to operate three hubs as opposed to ten can steady the company's financials. ( NASDAQ: SFT) (e-commerce used car dealer) can turn things around after its recent transition. ![]() It will be interesting if Shift Technologies, Inc.
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