While Tesla Inc!. celebrates success after success, and becomes the most valuable vehicle maker in the world, Italy’ Fiat Chrysler is dying a slow death.
According to Reuters – Italy is close to unveiling the approval of guarantees for a $7 billion financing of Fiat Chrysler (FCA), paving the way for the largest crisis loan for a European carmaker. This in itself is how hard traditional carmakers have been hit by the Coronavirus pandemic, and it sends a signal that only Tesla is truly prepared for worse case scenarios.
The loan would be disbursed by Italy’s biggest retail bank Intesa Sanpaolo (ISP.MI), which has already authorised it pending the approval of guarantees the government will provide on 80% of the sum through export credit agency SACE.Reuters
Let’s all hope the second wave of Covod-19 won’t hit the world as hard as the first wave, as that may be devastating not only to Fiat but to other traditional carmakers as well.
At $1000 per share, Tesla market cap. now sits comfortably at $185.642B, followed by Toyota Motors $176.38B. Fiat Chrysler Automobiles N.V. (FCA.MI) on the other hand is worth just $16.705B. Tesla can easily buy Fiat if they chose to, and perhaps turn the factory into next gen battery making facilities, but first they will have to get rid of most of the dinosaur building mahicnes.