Apr 1 at 15:47
By Ben Levisohn
Robert Nardelli, who used to run Chrysler, was on Bloomberg T.V. today and
revealed that he's something of a fan of what Elon Musk is trying to do with
Tesla ( TSLA).
In fact, Nardelli calls Tesla's sales strategy "brilliant:"
A good friend of mine in Arizona traveled to California...puts his modest
$ 40,000 down payment to hold slot, goes back to Arizona. The car is then
delivered to him on a flatbed. A technician spends an hour with him, showing him
how to operate it. Fast forward a few months later. Technician calls and says, "
Your 12 volt battery is not functioning appropriately. We'll be there to change
The question, in Nardelli's mind is whether Tesla's margins will be big
enough to maintain that kind of customer support when it's selling 300,000
vehicles instead of 30,000."If he can, he has a successful business model,"
Click here for the full video.
Shares of Tesla have gained 2.9% to $214.48 at 3:23 p.m. today.
More at Barron's Stocks to Watch blog, http://blogs.barrons.com/