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If this trend continues, I really expect there to be a massive bidding war for Tesla before too long. When bears/shorts on tesla Complain about Tesla’s market cap, they seem to always forget the fact that Tesla is well ahead of any of these players in terms of both deployed hardware and data collection. This merger and investment brings Argo’s valuation up to you around $8 billion.

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Tesla is ahead in many regards but they are too debt laden for a buyout at this point. A larger player would be smart to wait until the economy turns and Tesla can no longer meet debt obligations, then buy them out of bankruptcy.

> they are too debt laden for a buyout at this point

Enterprise value is indifferent to capital structure. A leverage-sensitive buyer would buy out the high-yielding debt in addition to the equity. Purchasing out of bankruptcy is riskier, in many levels, compared with a negotiated sale.

Why do you say purchasing out of bankruptcy riskier? That's counter-intuitive for me.

Would be nice for them, probably not gonna happen.

> the fact that Tesla is well ahead of any of these players in terms of both deployed hardware and data collection.

This is far from being obvious given that the competition is collecting data with much more advanced sensors.

They do?

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