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Strategies & Market Trends : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (4570)	5/20/2021 6:47:44 AM
From: robert b furman	1 Recommendation Recommended By Lance Bredvold Read Replies (1) \| Respond to of 4719

Good Morning Bruwin, I have said for years the major error Musk made with TSLA is that he entered a market that had low margins. Much unlike Spacex. The car business has been a cut throat low margin business since the days of Tucker. When GM came out with Saturn, the low mileage used Saturns sold for more than the MSRP of the new vehicle. Its not beyond OEM's to issue cut throat pricing to assure the acceptance of their new entry. Elon will see his margins collapse if multiple OEM's decide to "buy market share". Do that for the initial model year and Elon's interest expense will exceed his margin. For years Intel was untouchable because they never had debt. Debt free is a beautiful business model, IMO. Bob