With a market cap around $1 trillion now and two companies struggling now would be a perfect time to swallow both
Rivian has a market cap of $10 billion. Throw a 50% premium there for their shareholders. Issue Tesla stock to pay for it and $15 billion. Or about $5 of teslas $344 stock price. Would pay for it.
Rivians problems they can’t make their premium electric truck and suv line fast enough. They don’t have the infrastructure and money to ramp up.
The positive is that they make a premium product. Their suv and their trucks are $80-$100k models. Throw them into the Tesla production system and there’s a lot of margin there. Add in Tesla name and the recognition. Trade ups from Tesla’s ugly egg cars and you have a ready made marketing appeal and audience. Millions who know the company will be around. And who have the money to trade up to a premium high margin vehicle.
I always said I thought Tesla would fizzle out and eventually become the hybrid or EV arm of Ford or General Motors. I thought they were innovative and could integrate well with a legacy auto maker or even Apple. But Tesla got too valuable and now Tesla can do the same to others.
Rivian adds an Aug that Tesla really doesn’t have. That thing that Tesla has isn’t an suv. It sucks. And the cyber truck is not only a joke I hear they lose money on every one. Rivian keeps slipping and this would make perfect sense.
here's an opportunity if not an asset play
https://www.reuters.com/technology/northvolt-files-chapter-11-bankruptcy-us-2024-11-21/