Will Tesla Be Taken Over?

[Causalien]

If it means selling out to a traditional automaker or a big oil co, I doubt it. Doing so would mean leaving everyone who drives a Tesla out to dry. He won't settle for "an opportunity" -- he wants a lot more than that.

That's why I said that if it were to come true. It will originally have to be disguised as an offer from Elon's tech circle. There's too much enmity between Elon and big oil/car for Elon to sell to them.

 

[Raffy.Roma]

Agreed. Men like Elon Musk are not motivated by money. They are motivated by how much they can change the World. If things go as we all hope they will, Elon Musk's name will be cemented in History forever, much like Steve Jobs or Henry Ford.

+ 1

 

[kenliles]

+ 1

+ 2

 

[InTheShadows]

Apple could buy them. They have enough cash. People are already calling the Model S a "Mac on Wheels".

Very very unlikely. If Steve were still alive then it would be plausible. Elon is the kind of guy that I think would only partner with another visionary. Tim Cook is a CEO, not a visionary, there is a huge difference.

 

[vgrinshpun]

It's not something that's cast in stone. Elon is a businessman and when an opportunity that makes sense present itself. He will accept it. Just like the secondary offering to get out of gov debt right after he explicitly stated tsla doesn't need. Tsla history is littered with events where Elon has to eat his pride and go back on his words.

The only american company with the fire power is Ford. But at their current firepower, they can only present it as a merger of equals. Usually, these mergers end with the exodus of personnels from the losing company. You can tell who won from the first exec that leave after merger, or demotion.

The way I would approach this tAke over, is to use a close ally that are more well received by the tech crowd. Where the CEO is either controlled by debt, or political favor. I would ask this ceo to appease Elon's desire to fully focus on spacex while assuring the full execution of the tesla dream and giving Elon a controlling stake of the resulting company. Once that deal is completed, subsequent manufacturing problems and accidents will follow with major dilution events. These events will be used to wrest control from Elon and the early die hard followers. Once enough is purchased from the dilution event using government money, final liquidation can happen a la fatal accident associated with battery tech.

Tesla Motors is a purpose, not profit driven company. Elon Musk is a very good businessman indeed, but his considerable business acumen is serving the purpose of electrification of light duty vehicles. The only opportunity that makes sense that could present itself and be accepted by him is the one that allows to get closer to the purpose stated above.


After the amount of money and gigantic effort he put towards Tesla achieving this purpose, I doubt very much that he will accept anything that would put this goal at risk.


The only way other automobile companies would be able to get piece of Tesla is by licensing their technology.


At this point they are so far behind, and so incapable to take clean sheet of paper INTEGRATED SYSTEM approach toward designing electrical vehicle from the ground up AND building the charging infrastructure to allow for intercity travel, that this would be the only way they can stay relevant. Since I do not see any of the major automobile companies taking such approach toward design of the new electrical vehicles, I doubt very much that they would be able to produce on their own anything that will compete head to head with the cars designed and built by Tesla. After Tesla puts out Gen III vehicle, it would become a benchmark that majority of consumers will use in evaluating all future vehicles.

 

[Norse]

Tesla is already to expensive, but that also means Elon is already so rich that he doesnt need any more money.

 

[RobStark]

My understanding is that should a potential buyer try to negotiate purchasing/acquiring a willing Tesla Motors, Daimler AG has the first right of refusal to acquire the Tesla Brand and its assets.
That is due to the May 19, 2009 $50M loan Daimler AG (which gave Daimler less that 10% equity) made which saved Tesla from bankruptcy.

Yes, any potential buyer must outbid Daimler's best counter offer.

Toyota, if it were so inclined, has $145B in cash. Daimler has no where near that.

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Apple could buy them. They have enough cash. People are already calling the Model S a "Mac on Wheels".

Google is developing driverless automated driving technology and said to be looking to buy a fleet of at least 60k cars. Seems like a good fit.

Apple does not.

 

[vgrinshpun]

My understanding is that should a potential buyer try to negotiate purchasing/acquiring a willing Tesla Motors, Daimler AG has the first right of refusal to acquire the Tesla Brand and its assets.
That is due to the May 19, 2009 $50M loan Daimler AG (which gave Daimler less that 10% equity) made which saved Tesla from bankruptcy.

The first right of refusal to buy agreement had an expiration date which I believe was this summer.

 

[justdoit]

What's to stop any entity from just acquiring a significant amount of shares?

 

[Krugerrand]

What's to stop any entity from just acquiring a significant amount of shares?

I believe the point is - that would be entirely a difficult task to do.

 

[772]

What's to stop any entity from just acquiring a significant amount of shares?

Schedule 13D/G and not enough $$

 

[AlMc]

Mods: Maybe we can move the 'potential buyers' discussion into a new thread? I enjoy the discussion and while I have been guilty many times of going off topic, a move might be in order.

Maybe even to the 'social chat short term thread'

 

[Dutchie]

Will Ford or GM take over Tesla?

If they want to, they have to pay a huge price. I don't think Elon would give up his shares that easy.

Will GM or Ford buy Elon Musk's Tesla in 2014?

 

[Raffy.Roma]

IMO Elon will not even consider to sell Tesla. For him it's not a matter of money. Just my opinion.

 

[artsci]

If they want to, they have to pay a huge price. I don't think Elon would give up his shares that easy.

Will GM or Ford buy Elon Musk's Tesla in 2014?

Let's hope not. That will result in a great company becoming mediocre nearly overnight.

 

[Grendal]

This is yet another FUD argument. There is already another discussion happening on this same subject.

The answer in every case is - no chance at all. Elon has his reasons for creating and running Tesla. None of those involve selling the company before it has a chance to reach his goal.

The most I will say is that after the Model E/Gen III is successful, Elon might, just might, let someone he trusts implicitly run the company so he can focus on SpaceX.

 

[RobStark]

IMO Elon will not even consider to sell Tesla. For him it's not a matter of money. Just my opinion.

When they asked Elon about someone buying Tesla he said "It is a possible outcome."

I don't know if Elon believes his ownership of Tesla or Tesla remaining independent is a necessary ingredient to the electrification of the automobile.

I have never heard him say that.

Elon owns 22% of TSLA ? Maybe a little more recently.

Still not 50% +1.

 

[mitch672]

Ever been in a union? Ever had "union guys" come over to you and ask you to slow down, your making the rest of us look bad.

That's exactly the reason Tesla will never sell to the big three auto mfrs, Tesla is making them look bad, and they don't like it much, Tesla is forcing them to change or consider changing their business model, they don't much like that either. The only reason they'd buy Tesla is to deep six it, and Elon is well aware if it. If they want a piece of Tesla, I'm sure they'd be welcome with open arms to a technogy licensing deal, and that's all. Tesla doesn't need them, they need Tesla.

 

[Raffy.Roma]

That's exactly the reason Tesla will never sell to the big three auto mfrs, Tesla is making them look bad, and they don't like it much, Tesla is forcing them to change or consider changing their business model, they don't much like that either. The only reason they'd buy Tesla is to deep six it, and Elon is well aware if it. If they want a piece of Tesla, I'm sure they'd be welcome with open arms to a technogy licensing deal, and that's all. Tesla doesn't need them, they need Tesla.

Agree 100%. Well said. I couldn't say it better.

 

[RobStark]

Neither GM nor Ford have the cash and Fiat-Chrysler is in even worse shape.

I have written in several threads none of the Big 3 have the cash to buy Tesla and a stock swap is a stupid business decision.

Toyota and Google have the cash.

So far Toyota insist FCEV are the future and they are non-union in the USA. Dealerships may be helpful once your are selling 1M plus BEVs in North America, 1M plus in Europe and 1M plus in Japan.

Google has the cash, is getting into the driverless car business, and has no unions or dealerships.

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The only reason they'd buy Tesla is to deep six it, and Elon is well aware if it. If they want a piece of Tesla, I'm sure they'd be welcome with open arms to a technogy licensing deal, and that's all. Tesla doesn't need them, they need Tesla.

You think GM or Ford would buy a $19B company with a premium(if they had the money) to deep six it? Buy something worth half the value of their company in order to destroy it?

That is conspiracy theory taken to the extreme.