"Mr. Flannery, could you please describe the form of acquisition initiated by General Motors?"
The interviewer smiled, clearly aware through prior research that Tesla is a typical institutional stock.
For this type of company, a complete acquisition would be tough and not necessarily successful.
Hence, he speculated that General Motors, along with General Tianxing, should adopt a partial acquisition strategy for Tesla.
With a current 15% stake to enter the board, they might use interest swaps or promised benefits to appeal to other shareholders or directors, making their side the majority in the board, thereby gaining control of the target company.
A complete acquisition is straightforward but requires a tremendous amount of funds and resources, potentially impacting market dynamics. Despite few circulating shares in the secondary market, holding them could increase one's odds of success.
