Tesla May Have Been Negotiating a Potential Stake in Mining Company Glencore

von Eva Fox Oktober 31, 2022

Tesla May Have Been Negotiating a Potential Stake in Mining Company Glencore

Edit: At an investor’s conference in New York on November 4, Tesla CEO Elon Musk squashed rumours that they were interested in buying a stake in Swiss mining company Glencore.

Tesla may have been negotiating a potential stake in mining company Glencore. The information comes from unnamed sources and should therefore be taken with a high degree of caution.

The Financial Times, citing unnamed people familiar with the matter, said Tesla was in talks with mining giant Glencore to acquire a stake in it. A 10% to 20% stake in Glencore was reportedly considered last year. Negotiations continued until March of this year, when mining company chief executive Gary Nagle visited the Tesla factory in Fremont, California, as part of the presentation of Glencore's annual results.

Shortly thereafter, it became clear that the negotiations had ended in vain and Tesla withdrew from the purchase. The FT said Elon Musk is concerned about whether Glencore's vast business is compatible with Tesla's environmental goals and is reluctant to acquire a minority equity stake because of concerns. Given all the information comes from unnamed sources, it should be taken with a high degree of caution, as in recent months, the number of rumors circulating around Musk and his companies has increased significantly.

Glencore is the world's largest trading house and the largest producer of cobalt from its mines in the Democratic Republic of the Congo, Australia, and Canada. Two years ago, Tesla entered into an agreement to supply cobalt from the miner to its factories in Shanghai and Berlin. Tesla always strives to obtain materials for production from trusted companies that work in accordance with all laws and regulations, and also mine in the most environmentally friendly manner.

© 2022, Eva Fox | Tesmanian. All rights reserved.


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Article edited by @SmokeyShorts; follow him on Twitter

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