Reply to post: Re: Interest rates

Remember when Bezos whined about having too much money? Amazon's Q3 will help out with that

a_yank_lurker Silver badge

Re: Interest rates

Amazon and Tesla are very different companies and are in very different industries. Amazon is primarily in retail and the cloud. Retail does not attract vulture capital as the profits are modest at best but a well run retailer will tend to make consistent money, key well run. Badly run retailers go out of business which is generally why retailers die. The cloud does attract the vultures but Amazon got into out of their own needs so AWS has mostly been funded internally. Much of Amazon's sales are cash and carry or subscriptions with very little credit extended by Amazon. Thus interest rates have an indirect effect on Amazon by affecting the available cash of their customers. As a broad range retailer/cloud provider Amazon is not as susceptible to market forces as many niche retailers/providers are.

Tesla sells automobiles. Most cars are financed/leased which means the cost of the monthly payment is tied very directly to interest rates. What Tesla's exposure compared to other car manufacturers I do not know. Also, EVs are still more of a niche product which makes Tesla more susceptible to market forces.

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Biting the hand that feeds IT © 1998–2021