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Tesla Passes Ford by Market Value

bloomberg.com

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Re: Tesla Passes Ford by Market Value

#11

Post by stellar678 »

John23832 wrote: post #7
adamnemecek wrote: post #4

Earlier quoted context omitted.

Investors invest based on promise of future value. How much is Ford expected to grow?

If they can properly pivot into the electric car market, a lot. Ford has all the infrastructure that Tesla is attempting to build now (aside from the batteries, but that is something that Ford could easily partner with another manufacture to get). They know how to mass produce cars (granted right now, ICE cars). That's not an easy feat. They have a large manufacturing and maintenance base that, frankly, Tesla can't r…

>

This is why Ford is unlikely to succeed at pivoting into the electric car market. The power and pull inside their company doesn't want them to. It will take superhuman leadership to overcome that force.

Re: Tesla Passes Ford by Market Value

#12

Post by [deleted] »

jernfrost wrote: post #6

Why doesn't this have a huge benefit to Tesla. They always seem to be short on cash, but if you are worth that much shouldn't cash be super simple to raise for Tesla? Why push for high stock prices if it gives little benefits. Seems like a nutty evaluation even if Tesla knocks over the established players in the future. I do in fact think that there will be an iPhone moment where established players who have not take…

[deleted]

Re: Tesla Passes Ford by Market Value

#13

Post by [deleted] »

jernfrost wrote: post #6

Why doesn't this have a huge benefit to Tesla. They always seem to be short on cash, but if you are worth that much shouldn't cash be super simple to raise for Tesla? Why push for high stock prices if it gives little benefits. Seems like a nutty evaluation even if Tesla knocks over the established players in the future. I do in fact think that there will be an iPhone moment where established players who have not take…

[deleted]

Re: Tesla Passes Ford by Market Value

#14

Post by spectistcles »

jernfrost wrote: post #6

Why doesn't this have a huge benefit to Tesla. They always seem to be short on cash, but if you are worth that much shouldn't cash be super simple to raise for Tesla? Why push for high stock prices if it gives little benefits. Seems like a nutty evaluation even if Tesla knocks over the established players in the future. I do in fact think that there will be an iPhone moment where established players who have not take…

That's an interesting comparison — we could very well end up in a market where existing manufacturers catch up and vastly outsell Tesla in the long-run (Android), and Tesla ends up as a very successful luxury model (iOS).

Re: Tesla Passes Ford by Market Value

#15

Post by mikeash »

jernfrost wrote: post #6

Why doesn't this have a huge benefit to Tesla. They always seem to be short on cash, but if you are worth that much shouldn't cash be super simple to raise for Tesla? Why push for high stock prices if it gives little benefits. Seems like a nutty evaluation even if Tesla knocks over the established players in the future. I do in fact think that there will be an iPhone moment where established players who have not take…

They just raised about $1 billion a couple of weeks ago, which they said they didn't strictly need for the Model 3 but would be nice to have. They're not shy about taking advantage of their valuation.

Re: Tesla Passes Ford by Market Value

#16

Post by John23832 »

stellar678 wrote: post #11
John23832 wrote: post #7

Earlier quoted context omitted.

If they can properly pivot into the electric car market, a lot. Ford has all the infrastructure that Tesla is attempting to build now (aside from the batteries, but that is something that Ford could easily partner with another manufacture to get). They know how to mass produce cars (granted right now, ICE cars). That's not an easy feat. They have a large manufacturing and maintenance base that, frankly, Tesla can't r…

> This is why Ford is unlikely to succeed at pivoting into the electric car market. The power and pull inside their company doesn't want them to. It will take superhuman leadership to overcome that force.

That makes no sense. Companies seek to be viable in the future. If Ford or GM feel that an electric car is on the horizon and that car will eat their (ICE) lunch, they will pivot.

By your logic Tesla would have been locked out of the VC/investment market due to Big Oil. Money flows like water.

Re: Tesla Passes Ford by Market Value

#17

Post by mikeash »

John23832 wrote: post #7
adamnemecek wrote: post #4

Earlier quoted context omitted.

Investors invest based on promise of future value. How much is Ford expected to grow?

If they can properly pivot into the electric car market, a lot. Ford has all the infrastructure that Tesla is attempting to build now (aside from the batteries, but that is something that Ford could easily partner with another manufacture to get). They know how to mass produce cars (granted right now, ICE cars). That's not an easy feat. They have a large manufacturing and maintenance base that, frankly, Tesla can't r…

I have heard many times that the traditional car companies are heavily outsourced aside from the drivetrain. If I haven't been misinformed there (quite possible either way!) and this is true, then outsourcing that would leave Ford not adding much value themselves.

Even if it would work out for them, Tesla is pushing really hard to be a major battery supplier, so they could end up benefitting either way.

Re: Tesla Passes Ford by Market Value

#18

Post by John23832 »

adamnemecek wrote: post #9
John23832 wrote: post #7

Earlier quoted context omitted.

If they can properly pivot into the electric car market, a lot. Ford has all the infrastructure that Tesla is attempting to build now (aside from the batteries, but that is something that Ford could easily partner with another manufacture to get). They know how to mass produce cars (granted right now, ICE cars). That's not an easy feat. They have a large manufacturing and maintenance base that, frankly, Tesla can't r…

What infrastructure do you have in mind? Factories?

Factories, dealerships, a maintenance network, etc.
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