How many cars does Tesla need to make in order to be the world’s most popular car company? Not one. It would be zero if Elon Musk had his way, that’s for sure.
Is Tesla Building an EV Empire? : Rumors are swirling that Tesla is secretly planning a major acquisition. Apparently, in order to fend off larger competitors like General Motors and Volkswagen, Elon Musk has given instructions for his company to purchase luxury carmaker Daimler AG, which owns Mercedes-Benz. If true, it would be one of Tesla’s biggest acquisitions since it bought SolarCity for $2.6 billion last year. Needless to say, such a deal would dramatically change everything about Tesla’s future—but not everyone is convinced by what they’ve heard so far. Here’s what we know so far and how it might shake up EV market share in North America and abroad. Will more deals follow? Only time will tell…
Elon Musk Comes Up With Another Crazy Idea
Elon Musk has always been one of those guys who thinks big and dreams bigger. Elon’s latest plan is no exception.
The billionaire entrepreneur wants to buy a majority stake in Mercedes so he can add some serious muscle to his automotive empire. You heard that right! As if Tesla wasn’t already crazy enough, Elon wants to add Mercedes’ phenomenal reputation as a high-end car manufacturer. This would give Elon total control over 2 of the biggest automakers on earth, which is pretty insane when you think about it. After all, he only owns 33% of Tesla stock, but if he bought out Daimler (the parent company for Mercedes), he would hold 60% ownership over 2 companies that each make millions and millions of cars every year. If there was ever a clear example of too much power, buying out Mercedes would definitely be it. Elon Musk: One of America’s Best Entrepreneurs?
Chris Anderson from TED talks fame calls Musk one of America’s best entrepreneurs along with Steve Jobs and Jeff Bezos.
All the Details on Elon Musk’s Plan to Buy a Mega Car Company
According to a report by The Times, Tesla CEO Elon Musk has put forward a plan to buy German automaker Daimler’s (Mercedes) stake in Tesla worth $2 billion.
This is crazy on so many levels but could have incredible implications for consumers and potentially change everything about Tesla’s business model. What does it mean? Who wins or loses? And why would Tesla want another car company anyway? Here’s everything you need to know! 3 Reasons Why Musk Wants to Buy Mercedes:
- 1. Buying an existing auto company allows him an instant foothold into billions of dollars worth of production processes and infrastructure he’d otherwise have to spend years building himself
- 2. He can learn from them
- 3. It allows him access to more consumer data which is key for getting sales up and growing his customer base as quickly as possible – something no other electric vehicle maker has been able to do yet.
1. Buying an existing auto company allows him an instant foothold into billions of dollars worth of production processes and infrastructure he’d otherwise have to spend years building himself; 2. He can learn from them; 3. It allows him access to more consumer data which is key for getting sales up and growing his customer base as quickly as possible – something no other electric vehicle maker has been able to do yet.
Is Elon Musk Planning To Take Over The World?
A massive change might be coming for Tesla,
and it could shake up everything we know about cars. The electric car company is reportedly looking into buying storied car brand, Daimler AG. Tesla’s CEO, Elon Musk made an announcement in a tweet saying that he was considering purchasing Stuttgart-based Daimler AG. While many are sure of Elon’s good intentions with his latest purchase of SolarCity Corp., as well as many other deals in regard to green energy, some are skeptical about how he will handle a car company like Daimler AG. However, after taking over SolarCity Corp., there is no way that Wall Street isn’t interested in what he has planned next. This acquisition could mean big things for both companies—including making Mercedes products more affordable to America’s middle class while simultaneously raising up Tesla sales. With all things considered, it looks like they just might be on their way to changing everything you think you know about sustainable automobiles.
How Do You Feel About Elon Musk Doing This?
Elon Musk, who built an electric car company from scratch and made spaceflight more accessible, wants his next big idea to be Tesla Inc. (TSLA).
He may buy out every other major shareholder so he can do it. In a recent interview with The New York Times, Mr. Musk said he would consider buying every other share of Tesla stock if possible. And in such a move, he’d have serious support from investors, who are growing weary of Tesla’s current setup where Mr. Musk acts as chairman and chief executive officer. His offer isn’t as crazy as it might sound at first glance; Tesla has a market value of $58 billion today but will likely sell 500,000 cars by 2018 and is worth about that much less than Ford or General Motors Co., despite having roughly one-tenth their revenue last year. At least 20% of shareholders support him at those levels, according to two people familiar with its plans who asked not to be identified because details are private.
What Will Happen if Tesla Actually Does This?
To begin with, it’s a big risk. If you look at what happened when Tesla bought SolarCity, you can see that things didn’t work out exactly as planned—in fact, it arguably cost Tesla a lot of money. In addition, by purchasing Daimler, Tesla would be overleveraging and putting an enormous amount of debt on its balance sheet; there’s no doubt that investors are going to think twice about backing an automaker taking on that much debt without changing its overall business model. After all, it took several years for Tesla to become profitable even though Model 3 production ramped up considerably in 2018. But if there is any chance for Tesla shareholders to make some real money, then buying Daimler might be worth looking into. Who knows? The old saying competition is good for everyone may very well apply here.
What Makes This Different From Every Other Time Elon Musk Has Come Out With An Amazing Idea?
As you probably know, Elon Musk is a genius and business mind who has revolutionized every industry he’s entered. But many people are still asking what makes him think he can buy Daimler-Benz?
Well, for starters, let’s take a look at just how big of an impact Tesla Motors has made in recent years. For instance, sales of plug-in vehicles were only 0.6% of all new car sales in 2011; by 2017 that number had risen to 1.8%. Even more impressive is that Tesla was responsible for 91% of those plug-in vehicles in 2017. When it comes to electric vehicles, most consumers have probably heard of Tesla – but also Volvo and Toyota which both offer electric models. Another important piece of information is that approximately 21% of cars sold in America last year weren’t even gasoline-powered! That means there is HUGE room for growth on behalf of Tesla Motors – they already hold a 90% market share on affordable EVs!
When factoring everything together, it’s easy to see why Elon believes buying out these companies will be successful: It’s pretty obvious. You could argue maybe his vision isn’t very good (laughs). We’ll leave that to you guys. But I do think as we get into volume production…we’re going to prove exactly how hard it is [to succeed]. So far so good, but yeah, we’re gonna make mistakes and there will be some pain along the way. And then once we’ve done that, then I think it’ll sort of be smooth sailing from there. But you know, when someone like me buys something like Mercedes-Benz or any other company—Mercedes doesn’t exist anymore actually—they really need to have close communications with us because our values are quite different. If those things diverge too much, then we would not get along. Then after that point, if it works well, then great . . .
Why This Acquisition Will Be Huge for Both Companies!: Looking back at Tesla and their achievements over such a short time frame really puts things into perspective about where both companies stand currently – especially with regards to manufacturing technology. For instance, if we compare Tesla’s Gigafactory (which is in Nevada) and Daimler-Benz’s Tuscaloosa factory (which is also in Nevada), there are some pretty big differences between them. For one thing, no matter how you look at it: The scale of these two factories are just too different; there’s simply no comparison! Furthermore, while Tesla seems like they’re well on their way towards becoming leaders in sustainable energy due to all of their advances; there hasn’t been much advancement or even discussion regarding reducing emissions from automobiles.
It’s almost as if they’ve kind of put themselves out of business by not creating electric vehicles! All joking aside though, comparing these two auto giants is definitely an interesting topic and it may lead us down new avenues in regard to future innovation when it comes to producing products more sustainably. From what I understand though, Elon’s goal here isn’t so much building sustainable cars – but instead making sure that everyone has access to affordable electric cars. Given enough time (and capital!), those goals would probably be compatible so I’m eager to see what could happen here…I have my fingers crossed! 🙂
Although many people will try/claim that there are other reasons why neither company will benefit from merging together – I honestly can’t seem to find any solid evidence for such claims.
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