Re:Volkswagen invests up to $5B in Rivian
by londons_explore on Wednesday June 26, 2024 @06:15AM
(#40798325)
Unfortunately, with our current capitalistic system, it doesn't make sense to buy a company which has no intention to be as profitable as you are.
Basically, shareholders expect you to invest all the cash in your stockpile for a similar percentage return (on average), and they won't want you to invest in a capital heavy but almost profitless industry like carmaking unless you think you can turn it into a business of similar profit levels per unit investment to your existing business.
Basically, shareholders expect you to invest all the cash in your stockpile for a similar percentage return (on average), and they won't want you to invest in a capital heavy but almost profitless industry like carmaking unless you think you can turn it into a business of similar profit levels per unit investment to your existing business.