Image source: Tesla
In business, partnerships, mergers, and acquisitions are common and commonplace. Tesla CEO Elon Musk said at the Axel Springer Award event today that the company is open to merger discussions with other companies.
Speaking at an Axel Springer event in Berlin, Musk was asked if he would consider buying one of the legacy automakers, given that Tesla's market cap of over $500 billion would make it easy to apply for a takeover. Musk replied that Tesla would not conduct a hostile takeover, but if any company would show a desire to merge with the manufacturer, then this would definitely be discussed.
“We are definitely not going to launch a hostile takeover. If somebody said it would be a good idea to merge with Tesla, we would have this conversation.”
Despite the fact that, at the moment, a Tesla merger with another company does not seem very realistic, such a scenario is becoming more and more obvious. The automotive market has already begun to change, and we can see significant growth in sales of electric vehicles around the world. Tesla is the best-selling EV brand in the world, even though the company sells only four models.
The pace of development and growth of the California-based automaker surprises even the most cardinal skeptics. Tesla continues to ramp up production and build factories in various parts of the world, which will eventually produce millions of electric vehicles per year.
Given the pace at which other companies are developing and manufacturing electric vehicles, it is clear, unfortunately, that not everyone will survive. The car companies already are faced with a lack of funds for the development of EVs, a lack of good understanding of the process of their production, and a shortage of good specialists in the required fields. Ultimately, they will be forced to admit defeat and disappear entirely, or team up with a powerful manufacturer like Tesla.
© 2020, Eva Fox. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.