3 ms·
You don't understand the structure of the deal. GM risks nothing and has upside.
by 55555 6y ago
You don't understand the structure of the deal. GM risks nothing and has upside.
- jariel 6y agoI understand the structure of the deal - you're not understanding credibility, power and money. Doing a $2B deal with a company that turned out to be hot air / fraud is inexcusable, total incompetence - it doesn't matter how well leveraged GM was ostensibly, or how de-risked they were. If it was a 'side show' M&A project, the CEO could write it off, but it's not - EV's are 'the core' part of the future of automakers and they are scrambling to put a strategy in place. Everyone involved in this fiasco to go, they need someone in place who can put the EV roadmap in place. There was ample evidence that NKLA was a mess, and GM bit anyhow. This deal should be a be 'Tesla Buy' signal, because it validates Musks' view that regular automakers are stupid. And just gasp at how badly markets are out of whack - a $10B company that has no money, a string of failures, they've produced nothing for the investment, shenanigans with investors bailing out etc.. In reality NKLA is probably worth some large negative value.
- 55555 6y agoI see your point.