Article: Surprisingly Good Reason Why Tesla Should Acquire Ford

[Holiday]

The host of the video touched on it at the end, but this would not happen because of the Ford family. When the warning signs of the ressesion were clear, Ford scrambled to acquire every bit of funding possible before banks stopped lending. They used everything of value as collateral, including the brand name and logo, to keep family control.

There are two classes of Ford stock; common and Class B (only owned by family). Class B is roughly 5% of the company’s stock, but provides 40% of voting rights. If a family member sells Class B stock outside of the Ford family, it reverts to common stock. Should Ford ever declare bankruptcy that structure would be invalidated and the family would lose their control. The family would never be able to reach a deal with Tesla that allows them to keep such control over their brand.

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[Efthreeoh]

Never the less, with their stock value, the bankers and investors would be lining up to finance it.

(No, I don't own any Tesla or Ford stock)

Nah, Ford has too much legacy baggage with labor retirement costs and environmental cleanup issues at it various manufacturing facilities.

 

[Bronco4lyfe85]

The Elon haters are hilarious. Dude is responsible for the reusable rocket which may be the greatest technological leap humans have had in the last 20 years.

Dragging the car industry into battery tech is literally a side hustle.

Yeah, I’m not going to hate on him, he’s an incredibly intelligent guy.

 

[SpecOpsHippie]

https://companiesmarketcap.com/automakers/largest-automakers-by-market-cap/

Just so we are empirical about the actual value of car companies. Tesla is THE most valuable automaker in the world. Ford is 16th at $35B, GM 7th at $41B and Tesla at the top with over $650B. And they are swimming in cash.
I’m NOT a big Tesla car fan but don’t think they are a whim. But I do embrace change.

 

[KirchTX]

Not to mention when volume goes up enough to allow price to fall on Tesla roofs, no one will ever buy a conventional roof again because you’ll lose money in the long run if it isn’t generating energy.

As an investor I’m much more interested in Tesla roof tiles than cars.

 

[HoosierDaddy]

Traditional 'dealer' sales model is obviously a dinosaur already in God's waiting room. But I don't know how easily Ford could extricate themselves from it. Not only are there existing contractual relationships with dealers...but also numerous state statutes articulating who can & can't do what.

I like the above comment.
It reminds me of Sears.
Find one , if any are left, and make a purchase via credit card. They are so far behind the tech curve it is actually shocking that they are not still using those credit card sliding "racks" to make carbon copies!!!

Eventually a company will make the right moves ....or the Big 3 will exhaust all their funds buying legislation .... and a newer more adept competitor will slip in and lay waste to anyone still using the old business model. Think Wal-Mart vs Sears , JCPenny, Kmart etc.

Ford tried to extricate themselves from the old model with their original comments for the Bronco and it's reservation fulfillment (By res# and similar group builds for efficency) and once the Bronco lit on fire, the big dealers forced the "allotment" mentality back in. (My opinion) No matter which way you read the fine print, the dealer allotment system made it's way back in into the system, it matters not whether it is the first sentence or the fifth....it was put in there for a reason. The big dealers want an advantage over the small ones who are more likely to cater to the customer.

One thing is for certain, eventually things will change, there is too much money at stake for it not to. They can't buy legislation forever, that well will dry up .

 

[HoosierDaddy]

The Elon haters are hilarious. Dude is responsible for the reusable rocket which may be the greatest technological leap humans have had in the last 20 years.

Dragging the car industry into battery tech is literally a side hustle.

Considering what solar, wind and hydro can and cannot do, a big leap in energy storage will be a far fucking cry from a side hustle.

My guess , who ever gets on top of that tech will look like the Amazon/Apple/ Msoft / etc etc giants in the IT industry.
It will change the world.

 

[KirchTX]

Considering what solar, wind and hydro can and cannot do, a big leap in energy storage will be a far fucking cry from a side hustle.

My guess , who ever gets on top of that tech will look like the Amazon/Apple/ Msoft / etc etc giants in the IT industry.
It will change the world.

Agreed. Side hustle comment was re: Elon’s main goal of making humans an interplanetary species. In his mind SpaceX is #1 Tesla is #2 at least from what he’s said publicly.

 

[Gamecock]

Let alone Tesla couldn't afford it. The stock price is not indicative of asset value.

Tesla could very easily buy Ford. No problem. The valuation and stock value gives them plenty of capability to buy a company like Ford with a much smaller valuation. I don’t think it would be a good move, as Ford’s massive liability to the Union retirees is crushing and would be an anchor around their neck. That said..if they want to, they can buy the company tomorrow.

 

[TXJeepScientist]

Tesla stock price is based on it NOT being a traditional auto company. The best way to kill that would be to buy one.

That's correct, Tesla is getting into the car insurance business, energy distribution, solar roofing, and batteries. SpaceX and boring are separate from Tesla.

 

[Efthreeoh]

Tesla could very easily buy Ford. No problem. The valuation and stock value gives them plenty of capability to buy a company like Ford with a much smaller valuation. I don’t think it would be a good move, as Ford’s massive liability to the Union retirees is crushing and would be an anchor around their neck. That said..if they want to, they can buy the company tomorrow.

No they couldn't. The capital necessary would curtail Tesla's investment in its own development of product and production capacity. It gains ZERO by buying Ford, and damages it's plans and ability to move the industry from ICE to EV

 

[Nobody]

I'm in the no chance camp.

This video is sorta relevant.

 

[Gamecock]

No they couldn't. The capital necessary would curtail Tesla's investment in its own development of product and production capacity. It gains ZERO by buying Ford, and damages it's plans and ability to move the industry from ICE to EV

Could and should are two different things. The guy said they couldn’t. They very easily could. I agree the shouldn’t...but they have plenty of ability to buy either Ford or GM.

 

[HoosierDaddy]

Agreed. Side hustle comment was re: Elon’s main goal of making humans an interplanetary species. In his mind SpaceX is #1 Tesla is #2 at least from what he’s said publicly.

Got'cha, I don't follow him that closely. Now I get the comment.
Appreciate it!

 

[TheRealCobraBurnout]

Let alone Tesla couldn't afford it. The stock price is not indicative of asset value.

I have a 100 shares of Ford stock. I'm not even sure how many shares would be needed to "take over" the company.

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