New age auto startups now at risk


WHAT could the automotive sector learn from the recent fiasco around rental-office company WeWork? A lot, according to some Sanford C. Bernstein analysts.

The collapse of WeWork’s attempted IPO is not only a warning sign for technology startups with inflated valuations – funded by investors pouring money into unprofitable companies in search of the next Amazon or Netflix – but, strangely, augers ill for many new companies in the auto industry.

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