Why? Merc's have their own quality control issues, a massive and expensive dealer network. And, after 'converting' the former GM Fremont plant, Tesla builds its own plants to best suit its production/assembly needs.
I don't think Tesla should merge with any legacy company. Some pairings are not viable. Mercedes made more sense than any other company since Tesla used their parts so they had some value.
There could be value in picking up a legacy car company's assets from bankruptcy at $0.10 on the dollar. Likely 70% of the assets can be sold or dumped, but there could be a few items of value to Tesla.
The problem with a merger or acquisition is it would instantly kill the Tesla direct sales model. Tesla would have to increase the vehicle prices by $5,000 or so to provide dealer margin. Sales would become the hated process as other carmakers use. Let's hope that never happens.
As we hear discussion on mergers and acquisitions I think a lot of people have a traditional concept of what that term means, and thus creating a lot of questions.
Elon is far from thinking or doing anything “traditional” (just look at speed at constructing giga sites).
If something would happen, it would be interesting how Elon made it happen considering that all carry with them a lot of baggage. My guess is it’ll be something along the lines of a deal “never seen before”.
Test was mission is to accelerate the advent of sustainable energy… Buying Mercedes would not help the goal therefore it is not a part of any plan for Tesla moving forward.
Personnaly, I don’t see it happening either.
It’s possible, but not probable.
Elon sees things differently than others.
Others don’t see what Elon sees.
Have owned Mercedes, wouldn't do it again. Lack of engineering prowess, high maintenance costs. Their reputation (based on lost exclusivity) exceeds reality.
“ Moving forward from internal combustion engine vehicles will also result in job losses, seen as how it takes less time and effort to build an electric car than a conventional gasoline or diesel one.
The next five years we will become a smaller company,” Kaellenius said during a Reuters Events broadcast yesterday. “We will have a fundamental change in the industrial footprint on the powertrain side.”
I only see Tesla partnering with a legacy auto maker, to help them quickly transition to making/selling EVs. Again though, at least here in the states, the dealers are the stopping block.
The recent news of 150 Cadillac dealers refusing to make the switch to selling electric, tells you all you need to know about their mind set.
The worst thing, IMHO, about the Model S is that horrible collection of turn signal, cruise control, gear shift, tilt adjust stalks - a direct Mercedes contribution from Tesla's early days of partial Mercedes ownership.
How quickly things have changed. It was not that long ago that the talk was all about a traditional OEM buying Tesla for their tech, as the company was clearly not going to make it, but there might be some value in their IP. Hmmm...the shorts were drown in a Tsunami of hurt and now Tesla is the one in a position to buy out the competition. Wow, what a quick turnaround, it's almost like it was an exponential change? :)
I would have thought the motivation to buy Tesla would be to kill it before it got too successful and ruin things for conventional dinosaurs (swipe suggestion for "companies" was "dinosaurs" so I went with it).
> @andy_connor_e said:
> Tesla is not going to buy a company unless they have something to offer to them.
I agree however Elon has said he’s open to licensing some technology and drivetrain components, Mercedes would just be a coach builder for their E-cars with a Mercedes badge, all Tesla underneath
Comments
The problem with a merger or acquisition is it would instantly kill the Tesla direct sales model. Tesla would have to increase the vehicle prices by $5,000 or so to provide dealer margin. Sales would become the hated process as other carmakers use. Let's hope that never happens.
Elon is far from thinking or doing anything “traditional” (just look at speed at constructing giga sites).
If something would happen, it would be interesting how Elon made it happen considering that all carry with them a lot of baggage. My guess is it’ll be something along the lines of a deal “never seen before”.
Test was mission is to accelerate the advent of sustainable energy… Buying Mercedes would not help the goal therefore it is not a part of any plan for Tesla moving forward.
It’s possible, but not probable.
Elon sees things differently than others.
Others don’t see what Elon sees.
Teslas balance sheet is much more attractive than Daimler’s.
Receipts:
https://www.carscoops.com/2020/11/daimler-boss-says-company-will-shrink-during-next-five-years/
“ Moving forward from internal combustion engine vehicles will also result in job losses, seen as how it takes less time and effort to build an electric car than a conventional gasoline or diesel one.
The next five years we will become a smaller company,” Kaellenius said during a Reuters Events broadcast yesterday. “We will have a fundamental change in the industrial footprint on the powertrain side.”
The recent news of 150 Cadillac dealers refusing to make the switch to selling electric, tells you all you need to know about their mind set.
And, no, it ain't gonna happen.
Oops, it's too late.
> Tesla is not going to buy a company unless they have something to offer to them.
I agree however Elon has said he’s open to licensing some technology and drivetrain components, Mercedes would just be a coach builder for their E-cars with a Mercedes badge, all Tesla underneath
They have bought a number of companies so far. I'm sure they'll buy more.
They get buildings, equipment, floorspace, people, all at once. Win win.