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This is interesting. So, you are saying comparing two vastly different industries - eCommerce and car manufacturing - is a fair comparison? This ignores the fa
by thisisit 9y ago
This is interesting. So, you are saying comparing two vastly different industries - eCommerce and car manufacturing - is a fair comparison? This ignores the fact that car manufacturing is more capital intensive.
Additionally, what about the comparison between capital climates both these companies have to go through?
Amazon taking on debt had their interest obligations reducing. Interest rates started out at 5% in 1999 and then saw going as low as 1% in 2002. Increasing to 5.25 before going back to 1% again.
In comparison, Tesla has been operating under record low rates of less than 1%. The only way from here is uphill.
Source for rates:
https://www.thebalance.com/fed-funds-rate-history-highs-lows-3306135 https://www.thebalance.com/fed-funds-rate-history-highs-lows...