Elon Musk is open to merging Tesla with rival brand

TusharK · 3rd December 2020, 11:23

Tesla CEO Elon Musk has stated that he is open to the idea of merging Tesla with a rival brand. Musk told Reuters that if somebody said it would be a good idea to merge with Tesla, they would be willing to discuss. However, he did clarify that Tesla wouldn’t launch a hostile takeover of a rival brand.

Tesla is worth over US$ 500 billion and the company’s stock price has tripled in the past 6 months. It has been reported that Musk believes that the company is overvalued and wants to focus on cost-cutting and profits to prevent Tesla’s stock price from crashing.

Tesla has achieved profits in the last five consecutive quarters. However, actual profitability has been around 1% for the past year. For the moment, investors are betting on future profits and the day they think the company will be unable to meet their expectations, Tesla’s stocks will tumble.

Source

GTO · 7th December 2020, 19:34

Not at this share price...nothing is happening. Tesla is currently too expensive / overpriced for any logical car company to think of merging with it. Because of Tesla's stock price, it will always have the upper hand in negotiations.

That said, there is no denying the technology that Tesla has & its brand equity. Tesla is 5 years ahead of every other EV maker. I say this after driving the Mercedes EQC & Audi e-Tron.

3rd December 2020, 11:23	#1
TusharK Senior - BHPian Join Date: Jul 2017 Location: Pune Posts: 6,638 Thanked: 58,391 Times	Elon Musk is open to merging Tesla with rival brand Tesla CEO Elon Musk has stated that he is open to the idea of merging Tesla with a rival brand. Musk told Reuters that if somebody said it would be a good idea to merge with Tesla, they would be willing to discuss. However, he did clarify that Tesla wouldn’t launch a hostile takeover of a rival brand. Tesla is worth over US$ 500 billion and the company’s stock price has tripled in the past 6 months. It has been reported that Musk believes that the company is overvalued and wants to focus on cost-cutting and profits to prevent Tesla’s stock price from crashing. Tesla has achieved profits in the last five consecutive quarters. However, actual profitability has been around 1% for the past year. For the moment, investors are betting on future profits and the day they think the company will be unable to meet their expectations, Tesla’s stocks will tumble. Source
	(10) Thanks

7th December 2020, 19:34	#2
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 71,299 Thanked: 307,336 Times View My Garage	Re: Elon Musk is open to merging Tesla with rival brand Not at this share price...nothing is happening. Tesla is currently too expensive / overpriced for any logical car company to think of merging with it. Because of Tesla's stock price, it will always have the upper hand in negotiations. That said, there is no denying the technology that Tesla has & its brand equity. Tesla is 5 years ahead of every other EV maker. I say this after driving the Mercedes EQC & Audi e-Tron.
	(1) Thanks