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.

Speculations suggest that Musk’s views on a merge – if and when such a possibility arises – may stem from the fact that he is looking at cost cutting and increased production to increase profit margins at Tesla. He had recently written an email to employees asking them to be mindful such that there is no reversal in Tesla’s soaring stock prices. “When looking at our actual profitability, it is very low at around 1% for the past year. Investors are giving us a lot of credit for future profitability, but if, at any point, they conclude that’s not going to happen, our stock will immediately get crushed like a souffle under a sledgehammer!” the email reportedly read.

At a time when competitors – even traditional giants like Volkswagen and Mercedes – are aiming to mount a challenge to Tesla, Musk appears doggedly determined to not just retain the EV crown but to also put an increased focus on profitability as well as expanding post-sales network.

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.

Tesla's investment in the China market is paying off Tesla Inc's (NASDAQ: TSLA ) sales in China doubled in one year to $ 6.6 Read more

Now Apple's electric car returns to the scene with force A day after the market learned that Apple (NASDAQ: AAPL ) is Read more

Tesla vastly beat analyst forecasts and may accelerate its entry into the S&P500 index. Tesla posted a fifth straight quarter Read more

Project "Roadrunner" to battery facility in Tesla. Tesla Inc. plans to build an expanded battery facility research and manufacturing facility Read more

They will investigate Tesla vehicles for sudden acceleration. The National Highway Traffic Safety Administration (NHTSA) of the United States announced Read more

Tesla (NASDAQ: TSLA) began the delivery of its Model 3 of electric cars manufactured at its Shanghai plant in less Read more

Tesla will begin delivering the first orders of the Model Y, its new SUV compact SUV, in the first quarter Read more

Rane Engine Valves announces salary cut of 10-35% across levels. Rane Engine Valves Ltd on Friday said in view Read more

The Nissan - Renault group after the worst results in a decade. Nissan has collapsed 10% after its bad results: it Read more

Apparel retailers cut orders while Asian factories fight to survive Clothes retailers in Europe and America sit on excess inventory Read more

Tags: automobile, merger, tesla

Tesla CEO Elon Musk says he’d be open to merger talks with a rival. ‘We’d certainly have that conversation.’

Leave a Reply Cancel reply

You may have missed