Tesla CEO Elon Musk spoke regarding the prospect of combining his electric car business with a legacy automaker. Musk stated while receiving Tuesday’s Axel Springer Award in Germany.
Musk has maintained a variety of prominent partnerships with rival firms’ CEOs. The most noticeable is with Volkswagen Board Chairman Herbert Diess, but Musk helped other businesses seeking to move to sustainability. Tesla, though, is the only full-electric automaker to sustain comparatively vigorous rivalry with several of the world’s largest and most successful petrol engine firms. After Tesla’s latest market price increase, which has rocketed the firm to become one of the world’s most successful, the prospect of Tesla joining or merging with another company is definitely worth considering.
Tesla might also acquire an automaker because of its huge value at $554.29 billion at the time of writing. This will provide Tesla with resources to launch a major initiative to produce vehicles, as well as further promote renewable energy transformation. Because of the prospect, Tesla was questioned about obtaining another car business during his acceptance in Germany.
CEO Mathias Döpfner asked if Tesla had ever did contemplate this possibility, which Musk answered:
“We are definitely not going to launch a hostile takeover, but if somebody said it would be a good idea to Merge with Tesla, we would have this conversation.”
Although Musk hasn’t elaborated on any current negotiations, Tesla might or may not be in with other auto manufacturers, the quote is definitely invoking. Tesla getting another carmaker has a broad range of advantages, and it’s interesting, to say the least, to see Musk accessible to the proposal.
For instance, if Tesla were to combine with Volkswagen, it would lay a stable base for European manufacturing which would be highly favorable since the German business already has a notable EV infrastructure. While Volkswagen has acknowledged that Tesla is many years ahead in terms of EVs, making less of a shift for Tesla to flip EV-specific manufacturing facilities will definitely aid timing the whole phase. If Tesla were to buy a business like Ford, which has no unveiled EVs, it could cause a slow down in turning production plants from gas-specific to EV-specific.
It’s a far more complicated problem than that, however, and considers so many variables.
Watch Musk’s entire Award Ceremony below.