Tesla to acquire Mercedes Benz / Daimler

[Hotspur]

Rumours suggesting Elon is going to acquire MB - could this spell doom for the luxury manufacturer?

 

[Wighty]

Where did this come from buddy ?

 

[Hotspur]

Where did this come from buddy ?

Musk has mentioned it before, however there are a number of youtube speculative videos on it this week about a $100Bn takeover - will it happen? not sure, I bet there are a lot of hurdles he will have to jump to acquire Daimler.

Rumour is that Tesla need greater market share - they have market cap but not share - they are worth over $1Tn so have the funds - apparently he wants a luxury German marque, but VW Group would cost x2 than what Daimler would cost, and BMW is in private hands therefore not available, so his only viable option is Mercedes.

It may just be rumours - but then again there is no smoke without fire?

 

[eman]

I read with what Tesla is worth it can purchase a company up to £2b with out going through the ombudsman route. Therefore buy out Daimler with out the hassle. I think it’s just the Daimler side not MB.

 

[Hotspur]

isn't that 200Bn not 2Bn that it can acquire another without referral to the ombudsman?

 

[malcolm E53 AMG]

I can understand Tesla wanting to merge with MB provides a base for them in Europe but can’t see a motive/likelihood for buying MBs old tech

 

[sausage]

I cannot imagine that Tesla could afford MB to be honest, I haven't looked into it, but I cannot see this, it is a bit like one of those new internet banks trying to buy HSBC, they would not and could not raise enough ££. If they did, they would wreck and destroy the victim company in the buy out. Musk is a chancer who got lucky and the rest of his story is only viable due to vast amounts of money created by Paypal - one of the worst companies to ever grace the planet.

 

[eman]

isn't that 200Bn not 2Bn that it can acquire another without referral to the ombudsman?

It may well be. Couldn’t remember the exact figures. Not numbers I’ll ever see.

 

[Hotspur]

I cannot imagine that Tesla could afford MB to be honest, I haven't looked into it, but I cannot see this, it is a bit like one of those new internet banks trying to buy HSBC, they would not and could not raise enough ££. If they did, they would wreck and destroy the victim company in the buy out. Musk is a chancer who got lucky and the rest of his story is only viable due to vast amounts of money created by Paypal - one of the worst companies to ever grace the planet.

I agree that they would probably make a mess of the target company.

As for capital - Tesla is one of only a handful of companies that are now valued at over $1 Trillion, so they could buy Mercedes 10 times over - not that I think that it is a good idea.

 

[Taffy7hfa]

Tesla is way over valued by the markets, that house of cards will come crashing down. The product is not that good.

 

[Kev555]

I think its more the Elon Musk in name thats worth $1T rather than Tesla itself. Tesla Probably is over inflated off the back of everything else he has achieved with the likes of space X etc, Every investor wants stocks and shares in anything connected to him. Can be a dangerous mountain to stand on for Mr Musk. But he keeps making silly or possibly wise comments wiping billions off shares and they bounce right back again. Midas touch ATM

 

[Mr Greedy]

Just because Tesla has a market cap of $1Tril doesn't mean they have access to large fractions of that in lending credit available to them.

I work with some very big numbers at work, but admittedly it's not in the trillions so I have no concept of how the money markets work at that end of the scale.

 

[Blobcat]

how the money markets work at that end of the scale.

Badly…

 

[SL63 Mark]

Is MB for sale ? The Chinese BAIC Group currently holds 9.98% of the company's voting rights, making it Mercedes-Benz Group AG's largest individual shareholder. Other major shareholders include the Chinese investor Li Shufu (since 2018) and the Kuwait Investment Authority (since 1974).

So not easy to buy it.

 

[WDB124066]

Is MB for sale ? The Chinese BAIC Group currently holds 9.98% of the company's voting rights, making it Mercedes-Benz Group AG's largest individual shareholder. Other major shareholders include the Chinese investor Li Shufu (since 2018) and the Kuwait Investment Authority (since 1974).

So not easy to buy it.

Ah, so that explains MB's designs and ethics.

As soon as Elon takes over Daimler the better off everybody should be. Daimler management are past their used by date well and truly. It is only the "Look at me" factor that keeps them selling cars - why else would you even think of buying one?

 

[sausage]

I agree that they would probably make a mess of the target company.

As for capital - Tesla is one of only a handful of companies that are now valued at over $1 Trillion, so they could buy Mercedes 10 times over - not that I think that it is a good idea.

Morning Hotspur, thanks for the info. I might have heard the $1 T claim but had completely forgotten about it. I am not an investor or a financier but i imagine with a value like that you are right, they could raise the funds. Wow.

I tend to agree with the follow ups that suggest a valuation like this is a house of cards.

How many remember FriendsReunited? A simple, basic website set up before the days of social media. I think it was ITV that paid over £100m for it. Oh dear, what a bunch of idiots. A reasonable example of how tech is so often valued on a perceived potential rather than a real value based on revenue. I am pretty sure Lastminute.com went the same way.

I agree, Musk has a much better proposition than FRU or Lastminute, but a $1t valuation based on crystal ball is a little bit of an alarm bell for me.

Are we the most idiotic form of life to ever exist if we are still falling for these bubbles There was a time when Tesla were streets ahead of the competition, these days the difference between a Tesla and any other electric car does not seem so significant, and with ugly, low quality cars with little luxury one has to question how long Musk can keep wearing the emperor's new clothes.

Am I allowing personal feelings to colour my opinion, almost certainly. I cannot stand the man because I think he has hoodwinked the world once, twice, possibly thrice and is still smiling about it thinking he is the bees knees when really he is just a lucky idiot. Early interviews with him during the start up and early phases of Paypal show him in a clearer light and for me he comes across as a drug addled idiot that got very very lucky thanks to other people.

 

[Hotspur]

Are we the most idiotic form of life to ever exist if we are still falling for these bubbles

Hey Sausage - agree with your comments completely.

With respect to idiotic form of life falling for these bubbles - it's not so much that, but personally working in mergers and acquisitions myself and investing in start-ups etc (although not my personal money), the thing is there is SOOOOOO much money that is just looking to find a home, to fund some either long or short term investment for potentially exponential reward - particularly where as currently the interest rates are just way too low for their liking and the stock markets are uncertain given recent events. Finding capital to invest in potentially good ideas is child's play these days, with fund managers, venture capitalists and private equity ready to throw millions or even billions at something...assuming the business plan holds up and withstands scrutiny - this is even to the extent where by funds compete with each other for the 'right' to invest in projects.

I have no doubt, whatever Musk goes after, be it Mercedes, VAG, BMW, Ford or even Toyota...he will be able to raise the funds pretty swiftly and will be fighting off potential investors.

I should add - I personally don't like the idea of a major motor manufacturer especially with such loyal followings as those named above could be acquired and potentially lose their brand and even lose touch with their heritage and values that has got them to where they are now as global titans of the automotive world.

 

[WDB124066]

Musk only did Tesla to encourage the world to take up the electric car sooner rather than later NOT FOR ANY OTHER REASON, his words out of his mouth, on that score alone he is a complete success, certainly not a lucky idiot. Lucky idiots don't sleep in factories because they HAVE to solve some pretty serious problems, lucky idiots don't ever get that close to the coal face - ever. Anybody who says Elon is a lucky idiot is clearly disconnected from reality.

Seen a Starlink array yet? Makes your jaw drop, only lucky idiots can put those in space ay.......Seen a Raptor engine, have you? 39 of them? only lucky idiots know how to make one of those, Werner Von Braun must have been the luckiest idiot I have ever heard of, the luckiest idiot who tore apart London with his lucky idiot rockets ay boy....lucky idiot!

No wonder the UK is on its knees - with such tremendous insight, lucky idiots. The only lucky idiots I know are the ones who drive modern mercs successfully.

 

[WDB124066]

Here's some more work from the lucky idiot, don't see anybody else landing rockets in wind on a barge moving around like that now do you - clearly the work of a lucky idiot, certainly not a fing genius. I can understand why he does this in the US and NOT the UK.

See what's happening at Boca Chica here, for all those who feel lucky, that is all you need - and to be an idiot. https://www.youtube.com/results?search_query=boca+chica+live+stream

 

[WDB124066]

British commentary on Elon's latest presentation re progress..... I wonder if he will make a rocket called The Tall Poppy.....?

Elon is a very wise man to hate flanges - they leak - profusely, I've seen scores [possibly hundreds] leak and only three welds leak in a career that has spanned 40 plus years. He would do well to avoid valves with stems too, and weld in the valves rather than bolting.

Apology time I think......don't you - idiot, or are you going to show us how to get to Mars.....?

The sooner he takes over the passenger car division the better as far as I am concerned, for what we have now from Daimler is a joke. What we have in Elon sleeping on the Raptor engine development shop floor helping the engineers get over their materials problem in Raptor two is NOT WHAT Dr. Z would do ever! Too much toffee on his nose to get to the bottom of problems, or even get his hands dirty or exercise his brain on the shop floor, much easier to let cars fail so we can cream the repairs - not something you do with a rocket now is it.

I am looking forward to the changes already.