IMO Tesla has been doing the same with considerable price cuts which shook the whole EV industry and led others to further price cuts, even though other OEMs had actually negative net margins already prior to price cuts. Tesla, with positive FCF, strong margins vs peers & impressive operational leverage and manufacturing efficiencies can withstand the short-term pain for long-term gain through stronger market share, higher market penetration and more accessible price points..
Thomas Russo from Gardner Russo & Quinn likes companies that have the ability to suffer so you might like his work. I'm sure you would have some great insights into his holdings Nestle and Heineken (especially when Anheuser-Busch has done poorly recently) if you are looking for article ideas :)
IMO Tesla has been doing the same with considerable price cuts which shook the whole EV industry and led others to further price cuts, even though other OEMs had actually negative net margins already prior to price cuts. Tesla, with positive FCF, strong margins vs peers & impressive operational leverage and manufacturing efficiencies can withstand the short-term pain for long-term gain through stronger market share, higher market penetration and more accessible price points..
Thanks for sharing, Luke. I can't really speak to that. I don't invest in auto OEMs.
Thomas Russo from Gardner Russo & Quinn likes companies that have the ability to suffer so you might like his work. I'm sure you would have some great insights into his holdings Nestle and Heineken (especially when Anheuser-Busch has done poorly recently) if you are looking for article ideas :)
Familiar with Russo. I'll have to get up to date and comb through his portfolio. Thanks for the idea!