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TSLA vs. FCAU


DTEJD1997
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Hey all:

 

I just noticed today that TSLA is now a little more than 2x FCAU's market cap.

 

Perhaps TSLA should buy FCAU?  Just think, then they would have some earnings!

 

So here is what I propose....TSLA vs. FCAU

 

 

At the time I write this, TSLA is $295.24 and FCAU is $15.68.

 

Which stock will return more to shareholders in 1 month, 6 months, 1 year, 1.5 years?

 

 

I think TSLA very well may win in the short term, but in 1 year+ out, I think FCAU will handily beat it.

 

Any thoughts?

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I've always thought TSLA would be wise to buy a real automaker if nothing else for the synergies, distribution network, and oh yea, profits. Doing so would all but eliminate most of the major risks Tesla faces. That said, I understand they seem to be allergic to profits, so they continue to choose the path most perilous.

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That's not how the market works. If TSLA buys FCAU, the market will no longer assign this ridiculous premium to TSLA shares.

 

Wouldn't it be interesting if TSLA bought FCAU or some other automaker and started selling the cars online bypassing the dealers.  I'm not sure if there is some kind of contractual thing that would prevent it from doing that, I've never looked much into the auto industry and how it works (or doesn't work).

 

Also it could offer its selfdriving feature on every car as a $5K option.

 

 

 

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That's not how the market works. If TSLA buys FCAU, the market will no longer assign this ridiculous premium to TSLA shares.

 

At some point Musk will have to decide whether it values having a real business, versus a temporary valuation on it's shares. One is sustainable if managed right, one isn't.

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That's not how the market works. If TSLA buys FCAU, the market will no longer assign this ridiculous premium to TSLA shares.

 

Wouldn't it be interesting if TSLA bought FCAU or some other automaker and started selling the cars online bypassing the dealers.  I'm not sure if there is some kind of contractual thing that would prevent it from doing that, I've never looked much into the auto industry and how it works (or doesn't work).

 

Also it could offer its selfdriving feature on every car as a $5K option.

 

Cars need maintenance. If you look at dealership's financial reports, like AN, they don't make much money from selling cars. Their biggest recurring rev is from maintenance rip offs. Margin was ridiculously high.

Therefore I don't see the point of by-passing dealerships for selling cars. Also, doing this would piss off these dealership, and how would you handle after sale services?

 

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That's not how the market works. If TSLA buys FCAU, the market will no longer assign this ridiculous premium to TSLA shares.

 

Wouldn't it be interesting if TSLA bought FCAU or some other automaker and started selling the cars online bypassing the dealers.  I'm not sure if there is some kind of contractual thing that would prevent it from doing that, I've never looked much into the auto industry and how it works (or doesn't work).

 

Also it could offer its selfdriving feature on every car as a $5K option.

 

Cars need maintenance. If you look at dealership's financial reports, like AN, they don't make much money from selling cars. Their biggest recurring rev is from maintenance rip offs. Margin was ridiculously high.

Therefore I don't see the point of by-passing dealerships for selling cars. Also, doing this would piss off these dealership, and how would you handle after sale services?

 

EVs theoretically should require less maintenance.  No oil change, less brake replacements, etc. I think that is why Telsa went to the direct model.

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That's not how the market works. If TSLA buys FCAU, the market will no longer assign this ridiculous premium to TSLA shares.

 

Wouldn't it be interesting if TSLA bought FCAU or some other automaker and started selling the cars online bypassing the dealers.  I'm not sure if there is some kind of contractual thing that would prevent it from doing that, I've never looked much into the auto industry and how it works (or doesn't work).

 

Also it could offer its selfdriving feature on every car as a $5K option.

 

Cars need maintenance. If you look at dealership's financial reports, like AN, they don't make much money from selling cars. Their biggest recurring rev is from maintenance rip offs. Margin was ridiculously high.

Therefore I don't see the point of by-passing dealerships for selling cars. Also, doing this would piss off these dealership, and how would you handle after sale services?

 

 

Go to google maps and search for "mechanic".  What you will find is that there are a lot of them near you.  Many of them do as good or better work than the dealership and most of them are cheaper.

 

 

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They have showrooms at the service centers (or at least they do at the Rocklin service center).  They have a showroom in Rocklin with a Model S, a Model X, and a Model 3.  There are a number of Tesla employee standing around to answer questions and to help you place an order online for a Tesla.  You can schedule a test drive if you wish.

 

Isn't that what dealerships provide to car buyers?

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