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The question required to justify a merger instead of partnership: Why would merging make things greater than the sum of the parts? If it doesn't, partner. I do

• marvin 6y ago
  I thing sgt is alluding to the fact that if Tesla hits an internal economic crisis, its stock price could fall far enough that one of the established automakers could acquire it or merge. And that this would be in their best interest, as Tesla now obviously has a significant lead in EV development and deployment. But this is contingent on Tesla losing its current trajectory. There would be no incentive for Tesla shareholders to do such a merger the way things look today.
• hedora 6y ago
  Actually, it probably makes sense for GM, in the same way that the AOL - Time Warner merger made sense for AOL. GM’s core businesses is threatened by technological change. They might not be around in ten years. Batteries and self driving cars are a big threat, of course. However, Detroit can probably catch up on those, eventually. Factory direct sales and service (i.e., “the internet”) are the bigger long term threats, and are ones that GM is contractually forbidden to address. Also, they’ve had 20 years to adapt, and have clearly failed to do so. There’s no reason to expect that to change. That gives Tesla a sustainable advantage. I’d certainly pay a premium for a car if it meant bypassing the local dealerships’ service counters.