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I thought you would be interested in this story I found on MSN: The Surprisingly Good Reason Why Tesla Should Acquire Ford The Surprisingly Good Reason Why Tesla Should Acquire Ford

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A lot of people may not like it but to me it makes a lot of sense. A stock deal would be a nit for Tesla and they gain all of Ford's engineering, manufacturing, supply chain... expertise. I often said I want a BEV with the tesla battery + power train and the rest of the car made by well... almost anyone else. Not sure how the regulators might react though.
 

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With solid-state batteries to hit the market in two years, and the charging infrastructure expansion expected in the same timeframe, The industry will be catching up with Tesla on everything except FSD. There is no motivation for Ford at this time. At the same time, Tesla’s manufacturing will also catch up. So there wouldn’t be incentive for a stock deal.

As for Tesla: Unless Elon wants to get in the business of selling gas-burning, pollution-generating vehicles, he cannot acquire Ford. Fords massive infrastructure cannot support itself without ICE sales. And Tesla does not have the capital to convert hundreds of facilities to BEV manufacture overnight. That financial burden would implode Tesla.
Plus, if Elon feels he needs to acquire infrastructure, there are other, smaller fish that will be easier to transition, like Subaru or Mazda.
He doesn’t seem to, by the way. Based on the sheer size and output capabilities of his own, ground-up facilities scheduled to open it 2021.

So, in my opinion. Not a good idea for Tesla to buy Ford.

Although, Elon may be pursuing other tech and resource companies to fulfill his vertical integration plans. If I was a fly on the wall, i would be rich.
 

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I thought you would be interested in this story I found on MSN: The Surprisingly Good Reason Why Tesla Should Acquire Ford The Surprisingly Good Reason Why Tesla Should Acquire Ford

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I don't get it. How would a company with $35 B in assets buy a company with $225 B in assets? I guess real assets don't mean anything anymore. I know.....the market capitilization value of the shares. Isn't that like funny money, here today and gone tomorrow?
 

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There is no motivation for Ford at this time.
True. Tesla was first to tap the market but not with the best EV tech or car. You don't see any car mfgs. partnering with Tesla or taking Tesla up it's free patents. Certainly Tesla's mfg issues are not something any industry would want to copy.

As for using Ford's expertise, Musk would reject it all so no reason for Tesla to buy Ford and no reason for Ford wanting to sell to Tesla.
 

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Discussion Starter · #7 ·
True. Tesla was first to tap the market but not with the best EV tech or car. You don't see any car mfgs. partnering with Tesla or taking Tesla up it's free patents. Certainly Tesla's mfg issues are not something any industry would want to copy.

As for using Ford's expertise, Musk would reject it all so no reason for Tesla to buy Ford and no reason for Ford wanting to sell to Tesla.
I mentioned the article to a sales rep at the Mach E Tour and actually laughed out loud and said "OH yeah the Ford Family is going to sell to Elon"
 

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Ford is going to have a terrible time figuring out how to phase out their ICE car and truck production assets without going bankrupt, Why would Tesla want to buy that problem?

And, the elephant in the room is the dealer model and the cost an antiquated anti EV middleman puts in the equation. VW is facing that very problem as the advance orders for id3s are filled and their dealer network is downright hostile to selling them. I hope Ford figures out a way to integrate on-line ordering with potential dealer enthusiasm. Are dealers ever going to stock and sell Mach Es, future EV models, and the EV F150?
 

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Ford is going to have a terrible time figuring out how to phase out their ICE car and truck production assets without going bankrupt, Why would Tesla want to buy that problem?

And, the elephant in the room is the dealer model and the cost an antiquated anti EV middleman puts in the equation. VW is facing that very problem as the advance orders for id3s are filled and their dealer network is downright hostile to selling them. I hope Ford figures out a way to integrate on-line ordering with potential dealer enthusiasm. Are dealers ever going to stock and sell Mach Es, future EV models, and the EV F150?
My point exactly. Ford will transition as it gains momentum on its lines, but it is a monstrous feat. And I hope Ford will invest in battery infrastructure once its solid-state prototyping with Solid Power works out.

To your second point: only about 65% of Ford dealerships opted-in for the EV certification needed (2100 dealerships). The remaining are not included and have to wait until 2022 before they can apply again. By then, maybe Ford will just buy-out those resistant like GM did.

Ford is developing its online ordering system right now, but I don’t think it is ready for launch. In Ireland, you will only be able to order the MMe direct from Ford. This may be the systems pilot market.
 

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Discussion Starter · #10 ·
My point exactly. Ford will transition as it gains momentum on its lines, but it is a monstrous feat. And I hope Ford will invest in battery infrastructure once its solid-state prototyping with Solid Power works out.

To your second point: only about 65% of Ford dealerships opted-in for the EV certification needed (2100 dealerships). The remaining are not included and have to wait until 2022 before they can apply again. By then, maybe Ford will just buy-out those resistant like GM did.

Ford is developing its online ordering system right now, but I don’t think it is ready for launch. In Ireland, you will only be able to order the MMe direct from Ford. This may be the systems pilot market.
And best of all after purchasing direct from Ford while you're waiting for delivery, you can spend your time at the Celtic Whiskey and Larder which features the largest selection of Irish whiskey (>600) or head to Galway for a pint of Guinness or Murphy's at the Quay or the Shire.
 

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Discussion Starter · #11 ·
And best of all after purchasing direct from Ford while you're waiting for delivery, you can spend your time at the Celtic Whiskey and Larder which features the largest selection of Irish whiskey (>600) or head to Galway for a pint of Guinness or Murphy's at the Quay or the Shire.
 

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Just a note...

As a Ford shareholder, if Tesla were to offer a stock deal at an attractive price I'm in. Ford management has largely been ineffective the last... oh... 20 years or so... Maybe Jim Farley can right the ship... maybe not. But any attractive deal they have to take to the shareholders. Ford's duty is to make me money in a morally and legally responsible way.
 

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Discussion Starter · #13 ·
Just a note...

As a Ford shareholder, if Tesla were to offer a stock deal at an attractive price I'm in. Ford management has largely been ineffective the last... oh... 20 years or so... Maybe Jim Farley can right the ship... maybe not. But any attractive deal they have to take to the shareholders. Ford's duty is to make me money in a morally and legally responsible way.
Sure I'm in at one share of TSLA for every ten shares of F
 

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Discussion Starter · #15 ·
5 year high for F is 14 bucks and change... I'm in around there. If the board rejects, then I'm an activist investor.

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Not me, F was at $36+ in 99 and this time in 2015 it was just under $17 so with the launches this year and next my prediction is it hits better than $14 by 2021 without Elon BTW back in Feb 2009 I bought at $1.70+
 

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Just a note...

As a Ford shareholder, if Tesla were to offer a stock deal at an attractive price I'm in. Ford management has largely been ineffective the last... oh... 20 years or so... Maybe Jim Farley can right the ship... maybe not. But any attractive deal they have to take to the shareholders. Ford's duty is to make me money in a morally and legally responsible way.
Ford’s business does not match Tesla’s mission statement. There is no sensible business benefit for a stock offer.

Hopefully, all turns out as planned with Ford’s current and upcoming launches and things continue to take a positive path.

I had the opportunity to buy F in the low 4’s back in March. I am hoping it continues its recovery for the foreseeable future.
 

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Not me, F was at $36+ in 99 and this time in 2015 it was just under $17 so with the launches this year and next my prediction is it hits better than $14 by 2021 without Elon BTW back in Feb 2009 I bought at $1.70+
Ah you got in during the great recession dip and held... So you've made some money, largely via the dividends.

For most shareholders, F management performed far worse than Index funds going back the last 10 years. IMO largely because they lack vision and commitment.

I've been plenty critical of Elon for many reasons but I'll never question his commitment. I just don't see the Jim Farley or Mary Barra types sleeping on the factory floor to get cars out.

Hypothetically, at $14 and change... I expect most investors will take the cash. Vanguard, Blackrock, and other large institutional shareholders most certainly will.
 

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Ford’s business does not match Tesla’s mission statement. There is no sensible business benefit for a stock offer.

Hopefully, all turns out as planned with Ford’s current and upcoming launches and things continue to take a positive path.

I had the opportunity to buy F in the low 4’s back in March. I am hoping it continues its recovery for the foreseeable future.

Not the article but see:

 

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And, the elephant in the room is the dealer model and the cost an antiquated anti EV middleman puts in the equation.
That "dealer model" is what many Tesla owners are hoping to upgrade to with a Ford or VW. Tesla's automated service where it is very hard to talk to a person about issues before bringing the car in, Personal service is back.

EV or ICE doesn't really make any difference to the business model. Tesla Service Centers are booked with vehicles needing service and are 20-30 days out. Tesla profits are up significantly from service work as more and more cars need out of warranty service.

Most mfgs and dealerships were doing online internet sales before Tesla and the service work is turning to be about the same.
 

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...Ford is developing its online ordering system right now, but I don’t think it is ready for launch. In Ireland, you will only be able to order the MMe direct from Ford. This may be the systems pilot market.
Ford is constrained by both State laws and dealer contracts from doing true on line sales. Tesla has no "protected" dealers and was able to negotiate or win in court the right to sell directly in all but 2 states, mostly because it has no dealers. Michigan and Texas are in process of dealing with the issue. Dealers wont give up without a fight.


That "dealer model" is what many Tesla owners are hoping to upgrade to with a Ford or VW. Tesla's automated service where it is very hard to talk to a person about issues before bringing the car in, Personal service is back.

EV or ICE doesn't really make any difference to the business model. Tesla Service Centers are booked with vehicles needing service and are 20-30 days out. Tesla profits are up significantly from service work as more and more cars need out of warranty service.

Most mfgs and dealerships were doing online internet sales before Tesla and the service work is turning to be about the same.
Service is a different animal from my point about the dealer model. Online transactions to date have still been from dealers with a negotiated price from those dealers. The MME model removes that except it does not prohibit ADMs or dealer discount offers, those offers constrained by the invoice matching the MSRP. I am intrigued to see what is included in actual dealer sales agreements when deliveries take place. Lots of dealer profit can be found there, out of any control by Ford. I hope the buyers of these initial orders hang tough against paying for extras.

The issue is not the buyer's preference, but whether Ford or any other traditional OEM can sell EVs without the middleman margin. Missing that extra margin cost and lack of any advertising spending are 2 additional pluses for Tesla profits along with aggressive cost saving tech and engineering.
 
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