Business Insider transportation editor Matthew DeBord (formerly of Jalopnik too) said Tesla and Fiat Chrysler’s stock show both companies’ susceptibility to market volatility and that each automaker could be in dire situations if a mild recession were to rear its head again.
(Although he does note that the best return on an investment this time last year would have been a few hundred bucks into FCA’s stock.)
Tesla may have more in common with FCA than it likes in terms of market unpredictability, which could raise the specter of a merger if its Model 3 isn’t on time or if the economy takes a dive, DeBord writes. As long as Musk doesn’t talk openly about hugging Mary Barra, he may have a decent shot.
DeBord’s analysis is based of Tesla’s 2015 performance, which has been its best year as an automaker.
Tesla operates like a true startup, he writes, whereas FCA has a more established — albeit shaky — business model. Even though FCA had a very public failed courtship with General Motors and an announced delay in its return for Alfa Romeo, the company’s share price has surged nearly 20 percent for the year.
Tesla needs to meet base targets to continue; FCA needs to expand beyond selling Jeeps and gain traction in BRIC territories soon.
The similarities continue, but he raises an interesting point: if the the U.S. economy were to sink again, who’s getting saved?