A combined entity is an incredible concentration risk, where Tesla continues to build inside of China. If SpaceX and Tesla combined it would be in the area of a corporation with a market cap of around $3.5 Trillion dollars. To put things in perspective that's about equal to the GDP of France.
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The banks in Brazil were making 30% return on equity, some of the highest returns of any banks in the world, and yet the service was horrible, the products were terrible, the interest rates were the highest in the world. That paradox was a sign that something was deeply broken.
David Vélez — Invest Like the Best with Patrick O'Shaughnessy
If these cards are so valuable, why aren't you using Brinks? You're going to trust FedEx?
Diet TBPN
The banks were so profitable and they were so used to that level of profitability that they just didn't need to change. And so when we came in with a completely digital model, with no branches, with a much lower cost structure, we were able to offer a credit card with no annual fee at a time when every single bank in Brazil was charging annual fees that were sometimes higher than the credit limit they were giving to customers.
David Vélez — Invest Like the Best with Patrick O'Shaughnessy