Musk Open to Merger Talks with Legacy Automaker

Tesla Chief Executive Elon Musk says the company is open to a merger with another carmaker.

Speaking during an awards ceremony in German on Tuesday, Musk was asked if Tesla may try to leverage its significant valuation to merge with a legacy automaker. [Watch the interview above]

“We are definitely not going to launch a hostile takeover, but if somebody said it would be a good idea to merge with Tesla, we would have this conversation,” Musk said.

While Tesla has a $533.38 billion market cap (at press time), it’s far from being the automaker with the greatest reach. A merger with a legacy automaker could accelerate Tesla’s manufacturing scale. Additionally, it would help accelerate Tesla’s overall mission of transitioning the world away from petroleum-burning vehicles.

Musk didn’t elaborate on the concept of a merger, but it’s certainly an interesting thought.

Which automaker would be the best fit for Tesla?

 

[MikeQ]

I would hope any such merger wouldn't involve taking on the obligations of supporting a dealer's network. One of the things I like the most about Tesla is not having to play dealership games.

 

[itsAndrew]

Anything that might dilute his control or influence would be a mistake. I feel like the legacy automakers are too top heavy and which kills innovation. Elon can do some head scratching things but at the end of the day I feel like his ability to cut through the BS pushes Tesla and the tech forward.

 

[MikeQ]

Anything that might dilute his control or influence would be a mistake. I feel like the legacy automakers are too top heavy and which kills innovation. Elon can do some head scratching things but at the end of the day I feel like his ability to cut through the BS pushes Tesla and the tech forward.

Unions would be another concern.

 

[AMPd]

I would hope any such merger wouldn't involve taking on the obligations of supporting a dealer's network. One of the things I like the most about Tesla is not having to play dealership games.

Teslas games are worse imo

 

[GoBlue88]

Ugh. I hope they don't do this.

 

[EmOne]

Can't think of a single option where the culture clash wouldn't be horrific. If DB and Chrysler couldn't make it work...Can anyone imagine the Germans playing second fiddle? Oddly, GM strikes me as an interesting notion; they seem to have seen the light, but have an awful lot of catching-up to do; their big presence in China sure wouldn't hurt, but someone else pointed out the labor problems in the US.

 

[InternetDude]

I would hope any such merger wouldn't involve taking on the obligations of supporting a dealer's network. One of the things I like the most about Tesla is not having to play dealership games.

Perhaps you have missed the countless crappy experiences when buying a used Tesla from Tesla? Tesla is the worst and a dealer network would make dealing with them better... for service & used sales anyway.

 

[dinonugget]

If Tesla had the same dedication to user and ownership experience as Apple, there would be no need for a dealer network. Right now, it's obvious Tesla has no desire to provide the customer service needed at the price points of these cars, so the consumers really need some middleman who's existence is based on keeping customers happy.

A dealer-less network only works when the products are built with dedication to suprerior quality, which the Teslas are exactly the opposite of.

 

[neurocutie]

Speculation about Daimler (Benz)...

Tesla Is Open To A Merger — And Daimler Would Be The Right Fit: Reuters

 

[LindenGR]

Merging with a legacy company would be a big mistake and destroy company culture. It would also slow Tesla down as it would be more bureaucracy that it would have to deal with and it would also suck up attention. They aren't prizes to be bought but poison chalices.

If something like this was to be entertained, perhaps sharing some of the tech for an ownership stake would be a better idea.

 

[Tiger]

Interesting related story:

 

[ModalYYJ]

Musk offered Tesla for about $60 billion to Apple during dark days of Model 3 Apple Self-Driving Car Plans Called 'Strange, If True' by Elon Musk - TeslaNorth.com

 

[Mark2018s]

If Tesla had the same dedication to user and ownership experience as Apple, there would be no need for a dealer network. Right now, it's obvious Tesla has no desire to provide the customer service needed at the price points of these cars, so the consumers really need some middleman who's existence is based on keeping customers happy.

A dealer-less network only works when the products are built with dedication to suprerior quality, which the Teslas are exactly the opposite of.

Thats pretty harsh... I have my Tesla about 18 months now and its by far the best car ive ever owned....I was a Cadillac guy for a lot of years...my last Caddy was the 2017 XT5....have also owned 2 new Accords and 2 new Maximas...none of them compare to the model S I have. Mercedes, BMW and Porsches?? My friends have them and they are nice but they dont pump my nads like Tesla does.

 

[Ostrichsak]

Thats pretty harsh... I have my Tesla about 18 months now and its by far the best car ive ever owned....I was a Cadillac guy for a lot of years...my last Caddy was the 2017 XT5....have also owned 2 new Accords and 2 new Maximas...none of them compare to the model S I have. Mercedes, BMW and Porsches?? My friends have them and they are nice but they dont pump my nads like Tesla does.

Spoken like someone who hasn't yet needed service. Give it time and his words will ring truer the more you need service which also increases relative to mileage.

 

[AMPd]

Thats pretty harsh... I have my Tesla about 18 months now and its by far the best car ive ever owned....I was a Cadillac guy for a lot of years...my last Caddy was the 2017 XT5....have also owned 2 new Accords and 2 new Maximas...none of them compare to the model S I have. Mercedes, BMW and Porsches?? My friends have them and they are nice but they dont pump my nads like Tesla does.

Which Mercedes? Which bmw? Which Porsche?
They all have vastly different models, of course a C class or a 3 series will be boring compared to a model s.

Have you experienced a Porsche taycan? It’s quicker than a model s performance, much quicker in the top end.
Have you experienced an S63 amg? While it’s slower off the line the entire car is so much better than a model s it’s not even close.
Have you experienced a bmw m5?

 

[AMPd]

Spoken like someone who hasn't yet needed service. Give it time and his words will ring truer the more you need service which also increases relative to mileage.

Not only that but there’s a reason some locations have 2+ week wait times for an appointment. These cars are not built with quality as the top priority. Anyone who says they are is lying to themselves, Tesla has one priority and that’s to beat the delivery numbers of prior quarters. Sometimes I wish elon went through with taking Tesla private (if that were even a true possibility) at least then he wouldn’t be doing everything calculated based on how it’ll affect the stock price. Aka delivering subpar built cars, lying about features that are coming soon.

 

[Mark2018s]

Which Mercedes? Which bmw? Which Porsche?
They all have vastly different models, of course a C class or a 3 series will be boring compared to a model s.

Have you experienced a Porsche taycan? It’s quicker than a model s performance, much quicker in the top end.
Have you experienced an S63 amg? While it’s slower off the line the entire car is so much better than a model s it’s not even close.
Have you experienced a bmw m5?

Good points...I havent driven them all. The Taycan is out of my league, unless I hit the lotto.

 

[Mark2018s]

Spoken like someone who hasn't yet needed service. Give it time and his words will ring truer the more you need service which also increases relative to mileage.

Hope I didnt just jinx myself. I drive pretty conservatively, ive not yet reached 155 mph...and normally dont go much over 130. The roads here are crap, or I could get where im going faster. Right now im loving the car....hope that continues...if not, im not married to Tesla.

 

[Ostrichsak]

Hope I didnt just jinx myself. I drive pretty conservatively, ive not yet reached 155 mph...and normally dont go much over 130. The roads here are crap, or I could get where im going faster. Right now im loving the car....hope that continues...if not, im not married to Tesla.

Not sure what terminal velocity has to do with anything I just said but okay.