Fiat Chrysler Automobiles

FCA position long Adam Wyden

Thesis

The investor believes that incremental gross margins could be as high as 75% to 90% due to leveraging fixed costs when increasing production. Insights from knowledgeable former executives suggest that margins on cars are in excess of 70%.

Did it work?

inconclusive confidence: low

Without specific price performance data or a defined time horizon for the thesis, it's difficult to assess whether the thesis has played out. The potential for high gross margins based on fixed cost leverage is plausible, but without evidence of actual performance or time elapsed, the outcome remains uncertain.

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