Dear Elon Musk, It’s Time To Turn The Motor City Into Gigatown Dear Elon Musk, It’s Time To Turn The Motor City Into Gigatown

  • Ford Motor Company and General Motors have both seen their valuations destroyed by the coronavirus.
  • Tesla, meanwhile, posted an impressive Q1 delivery report, sending its stock back above $500 overnight.
  • Elon Musk has a perfect opportunity to buy both these companies and make Detroit great again.

As investors punish the stock prices of Ford (NYSE: F) and GM (NYSE: GM), their valuations are plummeting, making them ripe for a buy-out. Tesla just posted a tremendous Q1 delivery report, and if he can stump up the cash, Elon Musk would be the perfect man to take over and turn manufacturing around in Detroit.

Coronavirus Knocks Ford & General Motors; Tesla Stands Tall

Times are tough for most manufacturing businesses, as nationwide shelter-in-place orders restrict consumer activity. One of the most dramatic effects of coronavirus is exposing those companies that are most exposed to a sudden drop in consumer activity.

Both GM and Ford are dealing with high debt burdens, and their shaky business structures have resulted in a crash in their stock prices. Combined, their overall valuations are down to just $32 billion.

Ford and GM stocks have crashed this year. | Source: Yahoo Finance

Tesla (NASDAQ: TSLA) saw its market cap reach $80 billion on Thursday, as huge delivery orders for Q1 appear to have supercharged the bulls.

Sharply contrasting with Tesla’s strong performance, General Motors saw a 4% drop in Q1, while Ford Motor Company posted an eye-watering 14% collapse in sales.

Elon Musk shouldn’t buy these Detroit giants simply because they are cheap; he should buy them because they would be very beneficial to Tesla.

Keep Your Friends Close & Your Electric Hummer Closer

Firstly, by buying both Ford and GM Musk could consume two of his biggest competitors in the truck and SUV space.

Because of the cult following for the Mustang and Hummer brands, an electric hummer and the Ford Mustang Mach-E and electric F-150 are prime competition for Tesla.

Early signs have…

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