Tesla should buy them all

Tesla Motors market cap is $659 billion.

The combined market capitalisations of the top 10 automobile manufacturers (in unit volume) is $567 billion.

Perhaps Tesla should use its wonderfully inflated stock price to buy all of these companies??

Or does Tesla barrel forward so that they put them all out business?

What an interesting tussle we are about to see….

Oh, I forgot to say…Tesla will manufacture approx. 430,000 cars in 2020, while the Top 10 will crank out about 65 million vehicles.

(here’s the list of Top 10 manufacturers Market Cap in USD; note: this is not their Enterprise Value)

Renault $13bn

Hyundai/KIA $21bn

Nissan $22bn

Peugeot/Citroen $24bn

Ford $35bn

Fiat/Chrysler $36bn

Honda $52bn

GM $59bn

Volkswagen $95bn

Toyota $210bn

Incidentally, Daimler and BMW have market caps of $63bn and $59bn respectively yet they are ranked 13th & 14th globally in unit production.

https://en.wikipedia.org/wiki/List_of_manufacturers_by_motor_vehicle_production

December 20, 2020

by Rob Zdravevski

rob@karriasset.com.au