Burn rubber

3 December 2020 By Christopher Thompson Follow @CGAThompson

AOL merged with the media group back in 2000, parlaying its bubblicious share price into an old-line business. Electric-car maker Tesla, worth an eye-popping $540 billion despite a puny 0.8% global market share, could do something similar. The Mercedes owner is the best fit.

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Tesla Chief Executive Elon Musk on Dec. 1 said he was open to discussing a merger of his electric-car maker with a rival.

Speaking at an Axel Springer event in Berlin, Musk was asked whether he would consider buying a rival given that Tesla’s market value of more than $500 billion would make it easy to launch a takeover bid.

“We are definitely not going to launch a hostile takeover. If somebody said it would be a good idea to merge with Tesla, we would have this conversation,” he said.

Tesla has said it expects to deliver roughly 500,000 vehicles this year. Volkswagen predicts global car sales of 65 million in 2020.

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