Elon Musk Has 99 Problems, but This Ain't One
In this video from Tuesday's MarketFoolery podcast, host Chris Hill and Motley Fool analysts Tim Hanson and Jason Moser sift through the headlines of the day to bring investors the real stories behind today's market moves.
At the end of 2006, Alan Mulally stepped up as CEO of Ford and was able to give the culture at the company a dramatic overhaul, reducing inefficiency across the board, by implementing a model he called One Ford. Today after the company released earnings, Jason still sees signs that the company's new model is driving returns, as he sees multiple signs of strength in the report. More broadly, however, Ford continues to struggle with issues related to auto manufacturers as a whole. Legacy costs are an enormous burden for the company, and the incredibly competitive industry is often forced to compete in price, rather than features, which ultimately hurts margins. Tim discusses a different approach to the automaker business model that he sees in Tesla Motors , which never had to deal with the auto unions and isn't burdened by legacy costs, and can maintain pricing power and compete in brand strength and unique offerings instead, in a way that the traditional automakers struggle to do.
Could China make automaker investors rich?
U.S. automakers boomed after World War II, but the coming boom in the Chinese auto market will put that surge to shame! As Chinese consumers grow richer, savvy investors can take advantage of this once-in-a-lifetime opportunity with the help from this brand-new Motley Fool report that identifies two automakers to buy for a surging Chinese market. It's completely free -- just click here to gain access.
The article Elon Musk Has 99 Problems, but This Ain't One originally appeared on Fool.com.Chris Hill, Jason Moser, and Tim Hanson have no position in any stocks mentioned. The Motley Fool recommends Ford, General Motors, and Tesla Motors and owns shares of Ford and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.