Tesla's profit trajectory is nothing short of impressive. For five consecutive quarters, the electric vehicle maker posted increasing sales growth and it is now regarded as the most valuable automaker on the planet with over $500 billion estimated market value. And now, Elon Musk is ready to talk about the merger.
This week, Musk received the Axel Springer Award in Germany, and in a subsequent interview, the Tesla CEO was asked about the possibility of merging. The company chief responded and his words came as a complete surprise.
Musk appeared to entertain the likelihood of a merger happening in the future. He allowed that if "a good idea" is presented to Tesla, then having a serious conversation on the matter cannot be ruled out. In other words, a good proposal would prompt the Tesla boss to reverse the course he has plotted for the leading EV manufacturer.
As CNET noted, three years ago analysts floated the idea of Tesla becoming part of the growing Apple portfolio of companies. The iPhone maker has a surplus of cash that could make life easier for Musk but he dismissed the suggestion outright.
However, the position taken by the maverick CEO was in 2017 and great things did happen at Tesla since then. The automaker is exploding profit-wise and if only to sustain the momentum, it makes sense that Musk will consider having a major partner on his plan for the future.
Per the same report, Musk is not entirely pleased with the profit levels that Tesla has achieved so far. The company is doing good but its standing was partly boosted by regulatory credits. It's quite possible that Musk wants a better picture for his firm. He could be shooting for profit stability in the quarters and years to come, and the chief is aware of the fact that working with the right partner would increase his chance of further success.
The record shows that Tesla prefers operating and achieving great things by itself. The company used to call Toyota and Daimler close partners but the collaboration eventually ended years ago. Notably, the automaker gunned for the moon in the past few years and many of the goals have been realized.
So, it seemed interesting that Musk is now toying with the idea of a merger, Electrek said. And the only reason that could motivate the Tesla boss is for his visions to be achieved at an accelerated pace.
Tesla's ambitions of making electric vehicles and clean energy as new industry standards entail hard work and tons of money. It could be that Musk had the realization that for his plans to push forward, working with a big partner would not be a bad thing.
As the reports suggested, Musk said he only needs to see a fantastic idea first and it could lead to bigger things moving forward.
