Excerpt from Barron’s quoting DataTrek co-founder Nick Colas:
…. “DataTrek Research’s Nick Colas, a former Wall Street auto analyst, has a provocative idea for how traditional auto makers—including General Motors (ticker: GM) and Ford Motor (F)—can unlock more value: Spinning out their EV businesses as soon as possible…
….“When it was just Tesla with a crazy valuation, they could afford to dismiss this [spinoff] idea. Now, with Rivian, Lucid, etc., they can’t,” wrote Colas in a Wednesday note. “Automotive is a capital-intensive business, so cost of capital matters, and so does having a high-value public equity currency for M&A and strategic initiatives”….
Read the full article here on Barron’s!