engle
Member
As we all know, Tesla Motor's 2013 mission was: "to accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible." Now semi and cyber trucks have been added.
As TSLA's market cap stays near its lofty level of $100B or goes higher, there will be old ICE companies that fail to transition to self-driving EVs successfully. Some will go into bankruptcy during the next recession. As part of their reorganization, they will have to sell-off idle factories and shrink. IMHO, It will be faster for TSLA to buy up some of these idle factories for TSLA stock in slow construction places like the USA than build them from scratch (except in China! ).
I don't see any reason for TSLA to acquire any weak and failing ICE companies since they come with too much last century baggage like union contracts (instead of stock options) and dealer networks. However, perhaps the bankruptcy judge can jettison them in court?
As TSLA's market cap stays near its lofty level of $100B or goes higher, there will be old ICE companies that fail to transition to self-driving EVs successfully. Some will go into bankruptcy during the next recession. As part of their reorganization, they will have to sell-off idle factories and shrink. IMHO, It will be faster for TSLA to buy up some of these idle factories for TSLA stock in slow construction places like the USA than build them from scratch (except in China! ).
I don't see any reason for TSLA to acquire any weak and failing ICE companies since they come with too much last century baggage like union contracts (instead of stock options) and dealer networks. However, perhaps the bankruptcy judge can jettison them in court?
VW probably doesn't need to catch Tesla in the near-term to survive. I actually think they have a pretty good chance of hanging in there long enough to be a major player, Telsa's future main competitor. Tesla has a proven ability to scale unbelievably quickly but even that won't be enough to meet the demand for serious EV's.
We need other players putting out desirable EV's.