The bottom line
▪ As of this week, electriccar company Tesla is worth more than the 113-year-old Ford Motor Co. Tesla now has a market capitalization of $47 billion, compared with Ford’s $45 billion. Last month, Tesla sold 4,000 vehicles in the U.S.; Ford sold 234,000.
▪ Gillette plans to cut prices on its razors by as much as 20 percent in order to compete with online startups like Dollar Shave Club and Harry’s that specialize in selling cheap blades. Gillette’s share of the men’s razor business has shrunk from more than 70 percent in 2010 to 54 percent in 2016.
The Wall Street Journal
▪ Amazon is expected to spend $4.5 billion on television and film content for Prime Video this year, roughly twice what HBO will spend. But so far, streaming video isn’t winner-take-all. Some two-thirds of subscribers to American Prime also subscribe to Netflix.
▪ The U.S. coal industry employed 76,572 workers in 2014, fewer people than Arby’s (80,000), Dollar General (105,000), or J.C. Penney (114,000). Even if there were as many coal workers as there were 25 years ago (131,000), the coal industry would still employ fewer people than the retail shoe sales industry (224,000).
The Washington Post
▪ Some airlines make as much money selling miles to credit card companies as they do selling seats to passengers. The card companies pay airlines anywhere from 1.5 cents to 2.5 cents per mile, which they then dole out to customers. Airline miles now account for more than half of all profits at American Airlines, the largest U.S. carrier.