Tesla acquired by a technical firm within 1 year, Scott Galloway predicts
In March, NYU Professor Scott Galloway made a bold prediction on South by Southwest: this is the year that Tesla begins to race.
Two months later, his claim begins to appear as if it could become reality. Shares in Elon Musk's electric automaker have pulled more than 35% to trade below $ 200, while Wall Street analysts are concerned that underlying vehicle demand may have disappeared.
Now, Galloway, who rightly called the Amazon Whole Foods acquisition back in 2017, predicts a Tesla purchase.
"I think investors finally get bored," he said on a Recode podcast with Kara Swisher published on Friday. "My prediction is within 1[ads1]2 months Tesla is under $ 100 per share, and it's probably bought because it's real value there."
Tesla did not immediately respond to a request for comment.
The big question is of who
Most car manufacturers do not have enough money to be able to distinguish tens of thousands for Tesla.
"Though it goes from $ 35 billion to $ 17 billion, Galloway says, adding that bids can include a prize that makes the deal's total value between $ 20 billion and $ 25 billion (still less than Tesla's current $ 34 billion dollar market value) There are perhaps a few companies that can buy it: Maybe Toyota, maybe Daimler Benz, but there is a bet on the ranch kind of bet. "
Instead, he predicts a tech buyout, like the rumors that have been circulating for years that Apple once made a bid for Tesla.
"The guys who could get it, who has the balance, are the technical companies, but they won't go into a low-margin business," Galloway continued. "So would Google start looking at the car as a platform for more advertising perhaps?"
Amazon is also interested in the automotive industry, said CEO Jeff Bezos recently. The company has made a significant investment in Rivian, a new electric SUV-based company, and has plenty of money to make another purchase ($ 17 billion on the latest disclosed balance).
"It's a great brand, it's a great product," Galloway said of Tesla, adding that the big four US automakers probably won't buy it: "They don't have the money."
