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Why Tesla Motors Is the Amazon of Autos

At first glance, it seems that Tesla Motors and Amazon.com have little, if anything, in common. However, from an investmentpective, the luxury electric-car maker and the world’s largest online retailer couldn’t be more alike. Let me explain.

Tesla investors and Amazon investors have a lot in common these days. As Tesla’s ballooning valuation attests, the company’s shareholders are willing to sacrifice near-term profits for future profitability — much like stakeholders of Amazon’s stock. In fact, Amazon has employed a similar strategy for years now. The e-commerce giant continues to burn through cash in order to invest in new growth initiatives such as Amazon Web Services or its business-to-business venture AmazonSupply.

Revolutionizing their respective industries
Since founding the company in 1995, Jeff Bezos has proven he isn’t afraid to forgo quarter-to-quarter profit for long-term gains.An as example, Amazon doesn’t currently make money on its Prime service. However, it does entice customers to spend more (and more frequently) by offering free two-day shipping on an unlimited number of deliveries for just $79 a year.
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