Tesla Begins To Police The Perks

Tesla and Amazon have always been on my “too hard” pile to figure out as an investment. I commend what they are doing to innovate their industries, but I could never quite figure out how to reconcile their low net profits with their sky-high revenues. When you’re selling billions of dollars worth of goods, I expect you to make profits. Even Ford, a deep cyclical, is able to earn 5% net returns on each car it sells. If you spend $45,825 on a 2017 Ford F-150, I can appreciate that $2,291 will work its way to Dearborn, Michigan in the form of net earnings that the Board of Directors and management team can allocate as they wish.

But the only thing I know is that Tesla will have to raise prices in order to earn profit rates that approach Ford.

As I mentioned last month:

“This means that economies of … Read the rest of this article!