Tesla Should Buy GM

"Tesla Inc. ( NASDAQ: TSLA) has a problem. It says it is not a car company but a robotics and AI company. That pitch only goes so far. Almost all its revenue comes from car sales, and those sales are faltering. They are falling in the European Union, troubled in China, and battered in the United States. Tesla has a problem. People want to drive gasoline-powered cars. That could persist for years, particularly in parts of Europe and the U.S."

"Even GM and Ford have been throttled in terms of their EV ambitions. GM just took a $1.6 billion write-off due to a slowdown in its EV operations. The GM message is simple. EV sales have cratered since the end of the federal government's $7,500 tax credit. Ford's EV sales were less than 5% of its total unit sales through the first three quarters of this year."

Tesla generates most revenue from car sales despite positioning as a robotics and AI company. Vehicle demand is weakening across the European Union, China, and the United States. Tesla's U.S. EV market share declined from roughly 80% to under 45% as GM, Ford, and Hyundai expand EV offerings. GM recorded a $1.6 billion write-off amid an EV slowdown after the federal $7,500 tax credit ended. iSeeCars forecasts U.S. EV share dropping from 8% to 4% through 2027. Consumer preference for gasoline cars and safety concerns about Tesla's self-driving tech further pressure sales. A GM acquisition would give Tesla a 17% U.S. market footprint and access to combustion-engine buyers.

Read at 24/7 Wall St.