Tesla's Elon Musk Discusses Possibility of Buying a Legacy Automaker

Tesla Showroom
Photo : Spencer Platt/Getty Images

Tesla's Chief Executive Officer (CEO) Elon Musk announced that he now considers the option to leverage the market cap of his co-founded electric vehicles (EV) based company, with the purpose of buying a legacy automaker.

The company's market cap is currently standing in a massive amount of 554 billion USD. It solidifies Tesla's reign on top of the automakers list in the world today. It is followed by Japanese multinational auto company Toyota, which is capping off at a total amount of 222 billion USD. Third on the list is the General Motors Company or GM, with 64 billion USD worth of market cap, and followed by the fourth placer, Ford Motor Company, which is worth 36 billion USD.

The CEO of Tesla was interviewed last Tuesday by another CEO. This time it was through boss of digital publishing company Axel Springer, Mathias Dopfner. One of the top marks from Dopfner's interview was the validation of Tesla's current market value goes beyond some of the world's biggest players in the automotive manufacturing and development industry. He also pointed out the success of Tesla on bringing EVs to the mainstream of the auto scene.

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The interview also showed how Musk expressed his thoughts that the company might not execute a "hostile takeover" when asked if they may have the possibility to acquire another automaker company in the near future. He also indicated that leveraging the market cap of Tesla to purchase a legacy automaker could take place through 'friendly terms' and assures that there would be no 'hostile takeover' happening.

Musk's statement came from the interview by Dopfner for the award Axel Springer has given to the CEO of Tesla, who was recently hailed as the third richest man in the world. Musk received the annual Axel Springer Award for his "indomitable will" that he applies to achieve his great visions for the company and advancement through technology and the world of automotive vehicles.

The Tesla Domination

Tesla's stocks now are priced at 568 USD, an amount which could be classified as expensive or high off value in the market. Yet investors and businesspeople still do acquire shares of the company, making it the highest revenue generating car manufacturer in the world. Although many seem to view Tesla as a technology company rather than a car manufacturing company, their inventions and products are all automobiles and automotive vehicles.

The sales and the value of the company are expected to continue its rise, maintaining its revenue generating prowess in the next year. New models incorporating their signature EV base and system are already scheduled for release in 2021. It includes the Tesla Semi, which would be a high state of the art electronic semi truck that could go as much as 600 miles. Announced also is the possibility of designing and developing hatchback EVs for the European audience, wherein a new Tesla factory is being constructed at Berlin, Germany.

ALSO READ: Tesla CEO Elon Musk Gives a Glimpse of Future Offerings; Hatchbacks, 621-mile Cars Possible

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