Trump University Dropout - Merger Idea

Trump University Dropout - Merger Idea

The Case for a Tesla-GM Merger

"The potential benefits of a Tesla-GM merger are plain to even a [Trump University]business-school dropout like your humble author. You put together a carmaker with mojo and a carmaker with capacity. Peanut butter in the chocolate. Get the idea? All of a sudden, a mildly-revamped Volt with "Tesla DNA" is selling like hot cakes at forty grand, because it's a cheap Tesla instead of a hugely-expensive Chevy."

"Forget the Gigafactory and all those headaches. General Motors has factories aplenty. And with the pros from Detroit on the case, Tesla can focus on innovation instead of sales-and-service support. They also have a dealer network that can be pressed into service if necessary, although in the twenty-first century we tend to think of old-school dealers as liabilities instead of assets. Still. It would be nice to be able to take your Model S P100D in for service at your local Chevy-Cadillac rural dealer if the necessity arose."

I laughed until I threw up in my mouth.

finman100 | April 6, 2017

that is a really funny write-up. wait, that was serious?

SamO | April 7, 2017

Yes. Apparently it was serious. GM must be getting pretty desperate.

carlk | April 7, 2017

Is there sarcasm I'm missing or it's a seriously stupid article?

Tropopause | April 7, 2017


What a match made in heaven!

ken.hixson | April 7, 2017

Another variation on the Apple-Tesla merger idea. Elon as the visionary and Tim as the operations officer could make for a great combination but that is asking a lot of two pretty capable individuals . . . but their respective strengths could be formidable but I digress.

No doubt GM has the capacity, pretty much all the established auto manufacturers do. It just seems to me their respective"missions" are not compatible. I think GM would suffocate Elon and I seriously doubt GM can adapt or even adopt a vision. The GM CEO was the subject of an article in Costco magazine last month, I didn't come away with any hope they are ready for the future. Yeah, they are big but how many times are we going to bail them out of bankruptcy? Personally, I think Tesla will be buying up their plants and people during the fire sale.

Who knows what they might have up their sleeves, just how I felt after reading the article.

SamO | April 7, 2017

I liked the Apple/Tesla merger discussion better, but they are just as silly. Tesla doesn't need Apple and they certainly do not want to have anything to do with GM.

ken.hixson | April 7, 2017

Agree on both counts but could we really all keep up with Elon if he had Apple money?! He might just skip Mars altogether.

SamO | April 7, 2017

Can't skip Mars. It's the forcing function to enable interstellar travel. :-)

finman100 | April 7, 2017

Expanding the Supercharger network has a whole new meaning when Mars is mentioned. "Let's fill in a 12 slot station on Venus, with a couple of 8 stallers on the Jupiter moons."

Only for long-distance travel mind you.

ken.hixson | April 7, 2017

You forget Star Trek . . . just a backwater drunk with a bunch of groupies and a left over ICBM in a mountain! Sorry if I offended anyone with my choice of adjectives here.

Elon already has the ICBM and a bunch of groupies, doesn't seem to be afflected with hangovers and sure seems to have more financial resources than Cockeran had (did I spell that right? . . doubtful). Add Apple, their cash and brilliant people and he will not even see Mars anymore.

Oh sorry, I forgot the flux capacitor, or was that another story?

codyb12889 | April 8, 2017

What did I just read.........?

I feel like this was some kind of weird passive aggressive play by someone short on Tesla trying to spread doubt. I suppose the stock breaking serious new levels has sent them into panic mode. Let them keep it up I think 300 is a new support level or will be soon.

Disclaimer: I own Tesla shares and the above is purely opinion.

Tropopause | April 8, 2017

Model 3 will drive the stock to $400. Shorts be warned!