If so, there are two possibilities to consider:

A. Someone might want to buy Tesla for its superior direct sales network!

In other words, if I were an existing auto maker, one way to get around the ancient and anti-competitive, anti-freedom, legislation in most U.S. states, acquiring Tesla, which isn't subject to these crazy laws, would be a nice way to do it! This prospect makes Tesla worth a lot more than any factory, electric car design, or charging network.

In other words, there's more to what Tesla is worth than just the superior electric car and the superior charging network.

B. You can't acquire this 'direct sales network' right.

As best as I know, this has not been litigated in recent decades -- and would therefore be a likely candidate for writ a certioari from the U.S. Supreme Court. That said, to the extent that an older auto maker with a dealer network couldn't transfer Tesla's direct sales model into the new company as result of an acquisition, it would severely limit the attractiveness of acquiring Tesla.

So, if you acquire Tesla, you lose one of Tesla's three major competitive advantages. I don't know the legal status of such a prospect, and I don't think it has been tried in the courts in generations, if ever. Certainly not by the U.S. Supreme Court.

What if Tesla made a gasoline car? At the moment, it's as unlikely as it gets, but imagine the value created if Tesla did it!

At the time of publication the author was long AAPL.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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