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I think the problem with it is that it's essentially exploiting a flaw in capitalism. The company would probably generate more total long term value if it conti
by namlem 10y ago
I think the problem with it is that it's essentially exploiting a flaw in capitalism. The company would probably generate more total long term value if it continued to service multiple companies, but Tesla wants to capture as much of its production as possible. Humans aren't money optimizers, and almost everyone has a buyout price. Because Tesla has so much money, they can gain a competitive advantage by just buying out others. Tesla and the stakeholders of the company they buy win, while the overall health of the industry loses. Now all their other clients have to spend extra time and money to do what they were previously paying Grohmann Engineering to do, either by finding a new partner or doing it in house.
- Heliosmaster 10y agoI'm more of the opinion that if the existing customers were concerned enough, they could have found a better solution. Forming a consortium doesn't seem too far off. Of course now i'm speculating with somebody else money, but I also believe somebody run the numbers. Strategy is basically about running numbers continuously about every possible scenario.