Tesla CEO, Elon Musk, has said that he would “certainly have that conversation” if another automaker suggested a Tesla merger. This was in answer to a question posed in an interview by Mathias Doepfner, CEO of German media and tech firm, Axel Springer SE, after Musk won the Axel Springer award given to “outstanding personalities who are particularly innovative, and who generate and change markets, influence culture and at the same time face up to their responsibility to society”.
Doepfner asked a theoretical question about a Tesla merger with one of the more traditional large-scale car companies. “I think we’re definitely not going to launch a hostile takeover,” Musk replied.
Asked if a friendly takeover was more likely, Musk answered, “If somebody said, ‘hey, we think it would be a good idea to merge with Tesla,’ we’d certainly have that conversation. But we don’t want it to be a hostile takeover situation.”
Tesla currently has the highest market cap of all automakers at $548 billion, with Toyota second at $190 billion and General Motors sixth at $64 billion.
No specific merger has been suggested by Musk, but GM Authority‘s view is that such an arrangement would not work with The General. In addition to developing and building its own Ultium batteries and Ultium Drive systems, GM has an alliance agreement with Honda to produce vehicles, both ICE and electric, and is also in partnership with startup Nikola, though this has recently been scaled back.
Furthermore, GM has announced that it intends to have no less than 30 EVs on sale around the world by 2025, with no input from Tesla. These upcoming models include the Cadillac Lyriq and GMC Hummer EV, along with a host of other models from all its brands, including Chevrolet and Buick.