Tesla CEO Elon Musk says he’d be open to merger talks with a rival. ‘We’d certainly have that conversation.’
Tesla is leading the charge, and literally at that, in the world of electric mobility. Such has been the dominant performance – and meteoric rise – of Tesla in recent times that CEO Elon Musk has now become the world’s second richest man. And yet, concerns over profitability remains clear and present. This may be a reason why Musk recently said that he is not obtuse to the idea of Tesla merging with a rival automaker even if it won’t indulge in any hostile takeover moves.
According to Reuters, Musk has said that a merger with another car maker is possible if the situation so arises. Speaking at an Axel Springer event in the German capital of Berlin, Tesla CEO expressed his views on such a possibility in no uncertain ways. “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,” he was quoted as saying.
Tesla currently has an 18% market share in the EV space globally. This is far more than Volkswagen, the car maker with the next largest share. And while rivals are looking at offering more and more electric products – PHEVs or full battery, Tesla is now also looking at coming out with more affordable products as well as expanding to newer markets.