Tesla continues to face apparent production problems and executive exits, but Elon Musk is seldom deterred by such matters, at least not publicly. He enjoys creating diversions from such issues – remember the announcement Tesla would produce an electric heavy-duty truck?
Now Musk has concocted a somewhat more fanciful diversion – Tesla will open a drive-in restaurant with electric car chargers and roller-skating car hops. It seems to be more than a mere musing – the electric car maker has applied for the proper permits in Santa Monica.
I am sure it will be packed much of the time. We have many Teslas on the road here in Los Angeles, which Santa Monica is embedded in. But this won’t speed up that production line….
On to this week’s issue. I am labeling this the blue sky issue as both columns address that topic. We welcome Key Bank as a contributor this week. If you are a dealer, you likely feel your store is worth a lot. You probably assign a much higher blue sky value to it than a potential buyer. That’s because you have so much blood, sweat, and tears invested in it.
But what are the actual value drivers in a dealership’s operation? It would be a good idea to start thinking about them now rather than later, say Key Bank’s Francis Brown and Joan Kaye.
We all hear the term blue sky bandied about, and we’ve all read those reports which assign blue sky multiples to the various franchises. But so much more goes into valuing a dealership. In this issue, Joe Aboyoun dissects the various considerations in determining a dealership’s blue sky value.
And, Transaction News.