Elon Musk is hoping to tie in Mercedes’ prestige as a luxury carmaker to his company by buying a majority stake in the electric automaker. If he was successful, he’ll have control over two automakers, one that makes millions of cars per year, and one that is renowned for its technological advancements. But will Elon Musk be successful? We can only speculate, but there are a few possibilities that have us intrigued.
The company’s first non-German boss unveiled a new electric sedan, the EQS. This new EV could pose a challenge to Tesla Inc. and Lucid Motors Inc. In addition to unveiling the EQS, Mercedes announced first-quarter profits that were slightly better than analysts’ expectations. But there’s a question of whether Tesla will be able to compete with Mercedes in this sector. It’s possible that the company could be making a bad decision – or it could be the right one.
A massive risk is involved in a Tesla purchase of Mercedes. The company recently purchased SolarCity, which didn’t go as planned and cost it money. And if the plan to purchase Daimler turns out to be a failure, it could lead to a massive debt load on the company’s balance sheet, something which will put investors off. After all, it took Tesla several years to grow to profitability before it became profitable, and its Model 3 production has exploded.
While Tesla is a highly regarded electric car manufacturer, it has also recently acquired SolarCity Corp. This acquisition would be its biggest acquisition since SolarCity. This would definitely shake up the EV market share. The company is also working hard to make its company a leader in the electric car industry. In addition to solar energy, Tesla is also planning to acquire a stake in Mercedes-Benz. So, who knows, the future of electric vehicles is looking bright.
There are many reasons why the Tesla company may want to acquire Mercedes. For one, the deal would help make Mercedes more affordable for the middle class. On the other hand, it would help boost Tesla sales. It also would give Tesla a name to be associated with. And it wouldn’t hurt to have a bigger name to compete with. Ultimately, it’s a win-win situation for all parties. And if Tesla buys Daimler, it’s likely to boost its sales and the reputation of both companies.
In addition to its acquisition of Grohmann Engineering, the German automaker has been working on developing battery models for electric cars. This acquisition of a German engineering firm, however, has thrown off its plans to produce 50,000 EQC electric SUVs this year. Tesla has since turned the company into Advanced Automation Group, which is responsible for advancing the production of its electric cars. If it was not for Tesla, Daimler’s electric SUV sales would have been stagnant.
Interestingly, the Gigafactory is much larger than the Tuscaloosa factory that Daimler-Benz used to manufacture cars. It has been the most efficient factory in the world. Its advanced automation group is working on making the manufacturing process more efficient. And it’s possible that Tesla will eventually work with other automakers. This could lead to a massive expansion in the auto industry. That’s a win-win situation for all parties involved.
Daimler and Tesla began working together over a decade ago. They initially worked to integrate Tesla’s lithium-ion battery packs with Daimler’s electric smart car. In 2014, Daimler paid $50 million for a minority stake in Tesla, and then sold it for $780 million. They will also collaborate on electric drive systems, battery systems, and individual vehicle projects. And, the two companies have a history of success together.
In addition to the Benz EQS and EQE, the automaker has already announced plans to make battery modules for electric vehicles in the U.S. Envision AESC will also supply battery modules to Mercedes EVs in the U.S. and Europe. The new plant will be an “export hub” for luxury SUVs in the electric era. The company has also raised base prices again, with the base Model 3 costing $49690 and the entry Model Y Long Range starting at $62,990.