Tesla is considering mergers and acquisitions of traditional automakers. Who will be the target? | TechNews



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Tesla CEO Musk has a new idea: In the era of warring states of electric vehicles, Tesla, the world’s largest market value, could acquire a traditional car factory to increase production capacity. But who will be the possible partners of Tesla?

Tesla CEO Elon Musk said in an interview yesterday that Tesla might consider acquiring a car factory as the next step to increase production capacity and competitiveness.

“We are definitely not going to launch strong M&A,” Musk said. If a traditional automaker comes up with a fusion idea, you’re willing to sit down and talk. “I hope it is a more friendly and peaceful process, not a malicious and powerful annexation.”

Not only is Tesla the world’s most valuable auto company, but in the capital market, Tesla’s market value (550 billion) is already Toyota (2.2 billion), GM (64 billion), Ford ($ 36 billion) and Flying Together, Astra Chrysler’s top four groups ($ 16 billion) account for nearly 61% of Tesla’s market value.

The stock market is not the real world. Market value and available cash are two different things, but such a large amount of capital makes Tesla qualified to do great things, but Musk has no intention of taking the initiative. He hopes the other party will take the initiative. Hey, we want to merge with Tesla, what do you think? “Thus began the dialogue that Musk envisioned.

The question is, which car factory in the world is friends with Tesla? In the early days of entrepreneurship, Tesla shareholders included Toyota and Daimler, and Tesla also produced power components for them, but these two shareholders liquidated Tesla shares in 2017 and 2014 respectively. In terms of stock prices, of course, the loss exploded, but from a competitor’s perspective, Tesla also lost potential allies.

Judging by the investment strength of EVs, Volkswagen, Ford and GM are destroying their money and have no regrets. It is impossible to give people half the hair wash; BMW and Daimler are two German brands. If you want to merge with Tesla, I’m afraid the Germans will riot; it’s even more impossible for sales leader Toyota.

From the perspective of Tesla’s financial resources, the probability of acquiring large factories is very low and the difficulty is very high; acquiring small factories will help limit production capacity. Regardless of which automaker Tesla acquires, you must eventually return to a fundamental question: Can this behavior help Tesla accelerate the popularization of electric vehicles?

In other words, if Tesla really wants to buy a traditional car factory, the real target is talent and technology. Compared to these large factories, Tesla buys a luxury car factory, or Mazda, which has close cooperation. More reasonable. However, if you really want to launch mergers and acquisitions, then perhaps Tesla wants to acquire battery factories more than these big automakers.

Interestingly, just a few years ago before Tesla’s stock price soared, Musk also said that he had discussed with Apple and Google that they would buy Tesla and allow it to maintain an independent operation. Now, as soon as the news gets out, which auto factory owner do you think is about to call Musk?

(Source of the first image: provided by Tesla)





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