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If this trend continues, I really expect there to be a massive bidding war for Tesla before too long. When bears/shorts on tesla Complain about Tesla’s market
by InTheArena 7y ago
If this trend continues, I really expect there to be a massive bidding war for Tesla before too long. When bears/shorts on tesla Complain about Tesla’s market cap, they seem to always forget the fact that Tesla is well ahead of any of these players in terms of both deployed hardware and data collection. This merger and investment brings Argo’s valuation up to you around $8 billion.
- hocuspocus 7y ago> the fact that Tesla is well ahead of any of these players in terms of both deployed hardware and data collection. This is far from being obvious given that the competition is collecting data with much more advanced sensors.
- simbas 7y agoThey do?
- prklmn 7y agoTesla is ahead in many regards but they are too debt laden for a buyout at this point. A larger player would be smart to wait until the economy turns and Tesla can no longer meet debt obligations, then buy them out of bankruptcy.
- JumpCrisscross 7y ago> they are too debt laden for a buyout at this point Enterprise value is indifferent to capital structure. A leverage-sensitive buyer would buy out the high-yielding debt in addition to the equity. Purchasing out of bankruptcy is riskier, in many levels, compared with a negotiated sale.
- prklmn 7y agoWhy do you say purchasing out of bankruptcy riskier? That's counter-intuitive for me.
- notaki 7y agoWould be nice for them, probably not gonna happen.