2019 Mergers Tesla General Motors

[Lakewood90712]

This should get the talking heads on CNBC into High Gear.

Tender offer all outstanding shares of GM common, , no cash , 1 share of newTesla General Motors for each GM share. Merger to close on April 1 , 2019.

New combined company will phase out franchise dealers in favor of the Tesla centralized virtual dealer network business model.

This will be in my yet to be published weekly 2019 investing newsletter.

 

[Ronstar]

Interesting. Don't think it will happen, but I can see dealers going bye bye in favor of a Tesla like sales model.

 

[Lakewood90712]

If I publish this wacky idea in an online market newsletter , maybe I can get an interview on CNBC.

 

[Mr. Tightwad]

Interesting. Don't think it will happen, but I can see dealers going bye bye in favor of a Tesla like sales model.

Completely agree. There must be a lot of people in the country who would prefer not to enter a car dealership ever again, and avoid the negotiating, time spent waiting, etc.

 

[Ready]

I like the direct sales model. Dealers have created a bad reputation for the industry, and it's time that someone disrupt this business model and teach them all a lesson.

 

[jazz4cash]

Interesting. Don't think it will happen, but I can see dealers going bye bye in favor of a Tesla like sales model.

It’s really really tough to disconnect from dealers and unions.

 

[Rustic23]

Not sure, but that would mean bye bye to GM selling in Texas. I believe Texas law requires dealers. I understand that is why Tesla has not outlets in Texas.

 

[aja8888]

Not sure, but that would mean bye bye to GM selling in Texas. I believe Texas law requires dealers. I understand that is why Tesla has not outlets in Texas.

I've heard the same. many states have laws keeping dealer car and truck sales a requirement. Texas now does the title work at the dealers too.

 

[Ronstar]

Not sure, but that would mean bye bye to GM selling in Texas. I believe Texas law requires dealers. I understand that is why Tesla has not outlets in Texas.

I've heard the same. many states have laws keeping dealer car and truck sales a requirement. Texas now does the title work at the dealers too.

Arizona used to be like Texas where Tesla outlets were not allowed. Arizona recently changed their stance, and now there are 2 Tesla stores in Scottsdale 8.5 miles apart. Lots of Teslas driving around too.

 

[Lakewood90712]

One step closer

TGM symbol is available on both NYSE and NASDAQ.

Putting Tesla Superchargers at all franchise GM dealers would generate curiosity and visibility of the Tesla product to potential buyers that would otherwise not consider. This would be most useful outside of metro areas. Initially, every GM dealer would be a showroom but not stock Tesla models unless surplus inventory arises. This would be a culture shift for both Tesla and GM dealers.

 

[jazz4cash]

In addition to a few states that do not permit direct sales, many have franchise laws that make it difficult for the mfr to cancel franchise agreements. How do you think the UAW labor agreement would be handled?
What do TSLA shareholders get?

 

[KCGeezer]

I especially like the idea of high speed charging stations at all current dealers. Nominal additional cost to the service side of the business and creates a nationwide network in no time.

 

[Lakewood90712]

In addition to a few states that do not permit direct sales, many have franchise laws that make it difficult for the mfr to cancel franchise agreements. How do you think the UAW labor agreement would be handled?
What do TSLA shareholders get?

Every CBA I have ever seen was binding on a successor for the duration of the contract. After that ??

 

[Midpack]

Interesting. Don't think it will happen, but I can see dealers going bye bye in favor of a Tesla like sales model.

Completely agree. There must be a lot of people in the country who would prefer not to enter a car dealership ever again, and avoid the negotiating, time spent waiting, etc.

I like the direct sales model. Dealers have created a bad reputation for the industry, and it's time that someone disrupt this business model and teach them all a lesson.

Not sure, but that would mean bye bye to GM selling in Texas. I believe Texas law requires dealers. I understand that is why Tesla has not outlets in Texas.

Special interests at work, NADA in this case. They’d rather regulate against competitors than just compete, improve or change to serve customers.

 

[joeea]

Tender offer all outstanding shares of GM common, , no cash , 1 share of newTesla General Motors for each GM share. Merger to close on April 1 , 2019.

New combined company will phase out franchise dealers in favor of the Tesla centralized virtual dealer network business model.

This will be in my yet to be published weekly 2019 investing newsletter.

It's kind of early for an April Fools joke, don't you think?

 

[jazz4cash]

Special interests at work, NADA in this case. They’d rather regulate against competitors than just compete, improve or change to serve customers.

I somewhat agree, but there’s nothing wrong with a group (NADA) advocating for their members. I see tremendous value in a dealer being an intermediary between mfr and end user but there’s more than a few bad apples out there. The dealer model itself maybe past it’s time but I don’t think so. Same with unions. They have to bring value to the market to justify their cost.

 

[Bamaman]

I still have not figured out who out in Fishtrap Hollow, Arkansas is going to work on a Tesla if there's a problem of any kind? People there have never seen a Gull Wing door.

Automobile dealers are there for a reason. Sure, you could operate without retail car salesmen on the hot selling models. But who's going to actually sell the slow moving, less desirable models of cars/SUV's?

Also used cars and used trucks don't sell themselves, and they're often a big portion of the dealers' total gross profits. If there were no dealers, where would all the used vehicle trade in's go?

I've also wondered what the lease/purchase ratio is on Tesla's? Do people actually pay cash for them or do they have a lease with a guaranteed buyback?

I don't necessarily agree that the Tesla model for an automobile is perfect.

 

[Midpack]

I somewhat agree, but there’s nothing wrong with a group (NADA) advocating for their members. I see tremendous value in a dealer being an intermediary between mfr and end user but there’s more than a few bad apples out there. The dealer model itself maybe past it’s time but I don’t think so. They have to bring value to the market to justify their cost.

Automobile dealers are there for a reason. Sure, you could operate without retail car salesmen on the hot selling models. But who's going to actually sell the slow moving, less desirable models of cars/SUV's?

I may be naive, but I don’t have any problem with NADA advocating for traditional dealers. But when they promote laws to outlaw Tesla or anyone else from selling their cars using their own model like they have in Texas, that should not be allowed. Let them compete, they will all have to deal with used cars, financing, maintenance etc. in the end.

And when I hear one industry or government agency or another trying to guilt the rest of us to protect them, I think where were you when my industry and so many others watched our jobs go offshore or phased out?

https://www.houstonchronicle.com/lo...ranchise-dealership-electric-cars-7940158.php

 

[Chuckanut]

Ok.