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 (NYSE: F  ) 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 (NASDAQ: TSLA  ) , 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.


Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2813900, ~/Articles/ArticleHandler.aspx, 4/18/2014 8:07:02 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement