Tesla (TSLA)
GM’s pain may be Tesla’s (TSLA) gain. CEO Elon Musk already has said he would be interested in acquiring closed GM factories, after it acquired its current Fremont plant for just $42 million back in 2010. And the condemnation of the GM move could allow Tesla to cast itself in a better light, and maybe get some cash for its troubles.
With a President who focuses on job growth above all else, and a Democratic House of Representatives that’s pro-environment, could a deal be made? Perhaps a reinstatement of the expiring federal tax credit for EVs in return for Tesla guaranteeing jobs in key swing states Ohio and Michigan?
That tax credit expiration should help demand in Q4 and raise concerns about Q1 sales. But as Ford (F) and GM retrench, Tesla could find a way to fill the gap and make itself a political favorite.
