GM stock

Forget Tesla Buying A GM Factory, Tesla Could Buy GM

Currently, Tesla has a market capitalization of $62.71 billion, whereas GM is only valued at $48.58 billion. However, keep in mind that in 2009, GM fell to a value of $1.06 billion. Many economists are starting to predict another recession on the horizon. Moreover, self-driving taxis could take annual global demand for cars from 88 million to a notably smaller fraction of that. Even if that does not occur, the largest car market, China, is rapidly switching to electric. It appears that GM is flatfooted and not prepared for either scenario.

Tesla vs. Ford

For decades, electric cars have been a dream of the future. Magazines showed show cars and experiments, but fielded few or no production examples. During periods of high oil prices, their prospects rose, but as oil prices declined, they faded. Tinkerers and DIY mechanics made home-built lead-acid gas car conversions. There were tantalizing forays stimulated by California’s CARB ZEV (zero emission vehicle) mandates, like the GM EV1, Toyota RAV4 EV, and Honda EV Plus, but they were in limited numbers and more often offered for lease but not for sale.