Continental Shares Rise on Outlook Reassurance

[Thomas Pickering]

This article from today’s edition notes Continental seemingly buck the trend by performing well in an otherwise downbeat automotive market. But can we draw a deeper connection which might explain it?
Continental specialise in tyres and braking systems, both of which wear a lot faster and therefore need replacing more frequently in heavier EVs than they did in traditional ICE vehicles. From my own observation, premium brand tyres such as Continental ‘tend’ to be used by fleet vehicles over private vehicles. And, as Peter has reported (e.g. 05/07/24), EVs sales are largely down to fleet and business buyers.
Are those fleets of EVs now reaching the need for a tyre change? Are the fleets of EVs wearing their way through tyres fuelling Continental’s current improved outlook?

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