Never mind Tesla, BMW's the real deal for a buyout

The Quandt family would take some convincing, but it would be far better

No sooner had Elon Musk tweeted his tentative proposal to take Tesla Inc private, than a debate raged about whether that’s even possible at a company that bleeds billions of dollars in cash. But Musk’s idea isn’t a terrible one for a carmaker, it’s just Tesla is the wrong one. Germany’s BMW AG is a far better candidate for a buyout.
 

“BMW is awash with cash, it’s grossly undervalued, LBO funds would queue to back it as they could get their money back in a few years,” says Max Warburton at Bernstein Research. “Tesla has negative Ebitda, and couldn’t pay