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The best way to justify that high p/e would be for them to use it to buy out the competition.

It costs Tesla ~<6% of market cap (780b) to acquire Ford (40b) or GM (44b) (with a friendly ftc); so for 15% of their shares, that could become the only "American" manufacturer - then they'd probably strip those 2 for parts, end the dealer model, bust the unions, maybe keep a few of the popular models.

Some of this might be inevitable anyway, as autos become more expensive (tariffs, inflation, chips, unions), and more reliable (dealer maintenance model, fewer sales)




Wouldn't Big Auto have to be bankrupt for Tesla to not inherit all the contractual/regulatory baggage holding Big Auto back?

If the US hadn't bailed out Big Auto then maybe someone like Tesla would have been able to pick up the usable parts for pennies on the dollar.

But as things stand today, why would Tesla want Big Auto's problems?


You spin off a company with all those obligations and pay it a pittance to take them on as supposed assets, soon after it declares bankruptcy. Now your new megacorp is free of all those pesky contracts.


The best way to justify that high p/e would be for them to use it to buy out the competition.

I'm not sure he could do that even if he wanted to. Tesla stock is being used as collateral for some of his other adventures --- like Twitter/X.


I don't know much about A&Ms or frankly business, but it seems kinda strange that this hasn't happened yet. We got the Stellantis Car borg before the Tesla car borg.




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